Output and withholding tax in customer ledger

Hi All !

Please help me to inform that does output tax, and withholding taxes used to mention in customer ledger or just we have to show gross value of invoice and payment ?

For example:

I raise an invoice to customer Rs. 113,000/= where 13,000/= sales tax. Customer deducts income tax of Rs. 3,390/= and Rs. 2,600/= sales tax and give me cheque of Rs. 107,010/=. So, all these figures will mention in customer ledger or just goss value of Rs. 113,000/= will mention in debit and credit columns when invoice raise and payment receive respectively.

Thanks in Advance.

SFA

Replies (2)
Quick Summary
This discussion clarifies how to handle output tax and withholding tax within a customer ledger. It explores whether to show the gross invoice value or itemise all deductions. The consensus is to record the gross invoice value, but separately account for deductions like sales tax and income tax to maintain accurate financial records.

Gross value of the invoice is Rs. 113,000, it is important to separately record the deductions made by the customer for income tax and sales tax, and to credit the appropriate accounts accordingly.

Dear Rakesh Sir,

Thanks for your reply. I will really appreciate if you can more elaborate it with using my given example.

 

SFA

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