what is journal entry for VAT withholding and incoming tax witholding ? what is difference of VAT WHT and incoming tax WHT? Thanks
asked 3 years, 11 months ago
VAT w/h - you withheld part of VAT before paying to vendor (1000+100 = 1100). you withheld 75% of 100 and pay 1000 in full. 75 will be paid to sales tax authorities.
Income w/h - you withheld part of the payable to the service provider. (1000+100 = 1100). you withheld 20% of 1000 and pay vat in full to vendor. 200 will be paid to income tax authorities.
difference is VAT vs Income tax authority... two separate tax!!!
answered 2 years, 9 months ago