10-20-2011, 02:18 AM
Income tax is the tax paid by a person on the taxable income derived durning the year .
Withholding tax is also income tax collected by withholding agents on behalf of the government and then deposited in the government treasury the basic aim behind such collection is to encounter with day 2 day cash flow problem faced by government .These taxes depending upon nature can be advance or final tax.
As far as the statement is concern withholding agents are required to collect income tax @ 3.5 on supplies made by a supplier unless an exemption certificate issued by the commissioner income tax is produced .
Withholding tax is also income tax collected by withholding agents on behalf of the government and then deposited in the government treasury the basic aim behind such collection is to encounter with day 2 day cash flow problem faced by government .These taxes depending upon nature can be advance or final tax.
As far as the statement is concern withholding agents are required to collect income tax @ 3.5 on supplies made by a supplier unless an exemption certificate issued by the commissioner income tax is produced .
