Atimonan Company received a bill for P27,440 from a VAT service provider. The payment for the service is subject to 2% creditable withholding tax. If Atimonan is a VAT taxpayer and a top withholding agent, what is the deductible expense? What respectively is the withholding tax and the amount of cash to be paid by Atimonan to the service provider?
Atimonan Company received a bill for P27,440 from a VAT service provider. The payment for the service is subject to 2% creditable withholding tax. If Atimonan is a VAT taxpayer and a top withholding agent, what is the deductible expense? What respectively is the withholding tax and the amount of cash to be paid by Atimonan to the service provider?
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 9DQ
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Atimonan Company received a bill for P27,440 from a VAT service provider. The payment for the service is subject to 2% creditable withholding tax. If Atimonan is a VAT taxpayer and a top withholding agent, what is the deductible expense? What respectively is the withholding tax and the amount of cash to be paid by Atimonan to the service provider?
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