differnece between Withholding tax and purchase/sales tax

[Former Member]

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

Thanks

Shravan

[Former Member · Accepted solution]

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