24 June 2008
Suppose an foreign company bill to its client for the services rendered say $100 and charges the VAT say $10 on those services. Total billed for services $110.
At the time of making payment client deducts withholding tax @ 15% including VAT.
So whether client is required to deduct WHT on the VAT also. if not, then the foreign company will be required to recompute its VAT component and pay since they have received less from the client due to deduction of witholding tax.
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