I need a guide on how to see reporting on withholding tax. While making payment in Pakistan, we need to withhold tax on the invoice value of the supplier and need to deposit tax as a withholding agent.
For example, if I issue an invoice of Rs. 100, my entries will be:
purchases debit Rs. 100
payables credit Rs. 100.
When I will settle my payable, I need to pay Rs. 90 and Rs. 10 needs to deduct as tax and then payback to the government. So my entries will be
Supplier debit Rs. 100
Bank Credit Rs. 90
Withholding tax payable credit (as liability) Rs. 10
When I pay withholding tax then entries will be:
Withholding tax payable debit Rs. 10
Bank Credit Rs. 10
Now, this issue is reporting withholding tax payable ledger. At the moment, I am recording payment by JV, to record the liability of withholding tax. Since the entries are recorded through JVs, I am unable to see the supplier’s withholding tax breakup (for example I need to pay withholding taxes of various suppliers of various invoices) I am unable to get that.
Any guide on this issue?
Regards
Yameen