In the balance sheet the WHT shown as receivable, However in reality it is held on the source and it never comes as recivable to us, unfortunatly i can see any option while creating the TAX code to do this. Could someone guide me on this. I want to see the total WHT but dont want to show it as as asset as shown inthe image below.
please read the guide where it is explained why the account is categorized as an asset.
https://www.manager.io/guides/12346
Problem is that since it is coming on WHT receivable, it is then deducting the VAT amount and showing. infact the WHT is not recivable. it is given to the tax aurhtorities at the source. As per goverment regulations I have to show this and the party will pay only the amount without WHT. In this situvation I can’t claim that money as well. what is the solution.
You need to show the edit screen of the invoice in question so that we can see if you have entered it correctly
Can I ask you why are you accounting WHT manually in the second line of the invoice, why are you assigning this line it to a tax code WHT and then using the WHT module at the bottom of the page?
It’s a little bit confusing…
this was due to a special requiremnets. WHT was added to the last 2 invocie ofthe project. so they have added the compelte WHT on these invocies so it for the whole project fee.
I tried you accounting writings in a Test Business and, if I am not wrong, you are adding three times the same withholding tax. Can you describe with an example the amounts and where should they go?
that is correct. it is aginst a project and we had 8 no invocie stage. the WHT came in the last 3 stage of total value 32xxx which has been split in 3 invocies. that is why.
Unfortunatly, I am not a hardcore finance guy, is there any document which explain how to account a small service business ? or can you point to me some direction ?
There are many accounting coaching websites that can assist with increasing your accounting knowledge.
To obtain more help on how to enter this type of transaction into Manager it is always good to explain the full circumstances of the transaction.
Questions that I have about what you have posted so far are:
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You have entered the transaction without including value added tax (VAT) on a transaction that would appear to require it. So, does the WHT amount include VAT that wasn’t charged on the prior invoices you mentioned?
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If it is withholding tax (and not VAT) then why is it recorded as a separate line in the invoice and also in the WHT section of the invoice? Entering it this way incorrectly accounts for it twice, and also understates your income.
Withholding tax is recognized as received when you receive notification from the withholder that it has been paid to the tax department on your behalf, and at this point it is transferred to the Withholding Tax asset account where it remains until annual tax assessment is completed and is then cleared to either tax paid expense or by receiving a tax refund, or a combination of both of these.
I still don’t understand. I’m not talking about three invoices but that you are accounting WHT through:
- an a writing direct to an account report
- a tax of 100% on that account report
- the using of the WithHolding module incorporated in Manager
You should decide one path and use it
hi Davide and AJD
The requirement of WHT is diffrent form VAT. for a perticular project I have to include WHT which the client said they will hold it at the source and I wont be able to claim. (this is on a diffrent country and I can’t claim that for sure) however my invoice need to show that amount and the party will pay my money without WHT. I have 2 options here, that ignore the WHT and dont show it in the manager at all, or show it in the manager but it can be a un touched or non accesible money. I dont know how to show this. that is why I said I am not an accounts guy. Hope it is clear now.
for the time being I have ignore the WHT in manager accounting.
That sound like double taxation. Is there an international tax agreement between these 2 countries limiting the levying of taxation to only the country of domicile?
Sorry but I still don’t understand. Try to show us the invoices you want to input in Manager, anonymized and maybe we can try to help you.
@ragas, it seems clear to me that you are delving into matters of international taxation advice that go well beyond the scope of this forum. Other users do not know what you are trying to do, nor whether it is what you should be doing. I recommend that you consult a qualified local tax advisor (accountant, attorney, or possibly both) to figure out the correct approach. Then you can return to the forum with those instructions for help you may need in figuring out how to record things in Manager.