Supplier Payments: Additional Withholding Income Tax
FastAccounts.pk is currently the fastest-growing Cloud Accounting Software in Pakistan.
This is a common practice to make Advance payments to the suppliers. Businesses also need to deduct the advance Withholding Income Tax from the payment.
In the latest update, we have made the recording of this transaction much easier.
1. How to Record Additional WHT on Advance Payment.
Simply go to Supplier Payments, Enter the Amount, this will appear as Unallocated Balance.
Select the WHT Rate and it will calculate the Additional WHT amount. The calculation of Additional WHT amount is done on gross-up Unallocated Balance.
It is important to note that the Additional WHT Amount will be deducted from the supplier ledger.
Once the Supplier bill is received make sure you link the WHT Amount with the bill and remove it from the Additional WHT Amount.
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