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Output and withholding tax in customer ledger

A/c entries 416 views 2 replies

farooq ali

4 Points Joined March 2023

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)

CA Rakesh Ishi

Working at Private Company

8637 Points Joined December 2011

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.