Skip to Content
author's profile photo
Former Member

differnece between Withholding tax and purchase/sales tax

Can any one please let me know the differnece between Withholding tax and purchase/sales tax

Thanks

Shravan

Add comment
10|10000 characters needed characters exceeded

  • Follow
  • Get RSS Feed

2 Answers

  • Best Answer
    author's profile photo
    Former Member
    Posted on Sep 28, 2007 at 04:32 AM

    Hi Sharavan,

    The basic difference between wht and purchase/sales taxes is when we make the purchase/sales at that time we pay the tax. including tax.

    in wht at the time of payment we diduct the tax from our side, rest of the payment we pay to the opposit party. excluding tax, at the time of submission of returns we balance the both wht and other taxes.

    assign points if useful.

    Raghav

    Add comment
    10|10000 characters needed characters exceeded

  • author's profile photo
    Former Member
    Posted on Sep 28, 2007 at 04:55 AM

    Hi,

    With holding Tax comes under DIRECT TAXES.

    Income Tax, Wealth Tax, Gift Tax.

    Income Tax :-

    Income from Salary

    Income from House property

    Income from Business or Profession

    Income from Capital Gains

    Income from Othersources.

    Hence Purchase / Sales Tax comes under INDIRECT TAXES

    Sales Tax, Excise Duty, Service Tax, Custmos Duty, Export Duty etc.,

    Warm Regards,

    Sivakumar Sathiyamoorthy

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member

      Withholding tax is related to tds paid or collected for services rendered / taken from service providers. These services have been classified under various sections of the act.

      Purchase / Sales tax is related to VAT. SAP configuration is entirely different for both tds and vat.

      Points!

      Prakash