How do I record With Holding Tax with held on Payments Received so that the Invoice Paid shows Nil Balance?
We have a mandatory Tax that is with Held On payments. For example if my Invoice is 1,000, when my customer is paying he will with hold 6% of that amount. So my customer will pay me 940. However the 60 will remain outstanding as per my receivables. how best can i treat this balance of 60 to bring my receivables to Nil. Please note, the 60 is an asset on my side because i can use it to offset my annual tax.