tax deduction at source

[linkalmoayed]

Hi all,

In the Indian system, as you know, when we pay a vendor we pay only 80 to 85% of the invoice to the vendor. The rest of the money is paid to the government as tax deducted at source.

Something like income tax where part is paid to the employee and the tax collected is directly paid to the income tax authorities.

How can the Accounts payable cater for this setting ?

Any help would be greatly appreciated.

Many thanks for reading.

 

[Jay Converse]

Look at Terms and Discounting.

 

[linkalmoayed]

thank you. I was thinking along those lines but thought there might be a better way like VAT handling so lets ask the smarter brains

 

[ettienne]

AP does not cater for this invoicing scenario, you need to use terms and discounts as suggested. Tax Services will not help you either, you will still be paying 100% of the vendor's invoice.