When a customer pays less than an invoice because tax was withheld, match the amount received to the invoice and record the withheld amount to the appropriate withholding-tax or tax-credit account. Do not reduce sales income merely because the payer withheld tax.
Keep the payer's deduction certificate or other evidence. The correct treatment depends on whether the payment is a schedular payment and on the entity that earned the income. Ask Afirmo if the invoice, bank receipt and withholding evidence do not reconcile.
