International Withholding Tax
Hi We recently invoiced a company in India and when paying they have deducted 20.8% withholding tax. What is the best way to record this deduction for tax purposes. thanks
Forum Discussion
Hi michlsa , Australia has a double tax agreement with India, so you should be able to claim this amount as a tax credit in the next company income tax return. You should make sure you get the correct documentation from India, some form of receipt from the tax authorities. Your accountants can advise further.
Pending confirmation, allocate this deduction (on your invoice or as a separate credit) to your income tax (liabiity) account, and let the accountants sort it out.
