Why is withholding tax charged on goods or services that are sold/rendered?

Withholding tax as I’ve realised is sometimes charged on goods sold or services rendered which must be payed for by the beneficiary of those goods or services. Why?

Example; my company sold goods to another institution and instead of the buying institution paying the amount charged in the invoice, they paid an amount less of withholding tax and I want to know why is that? However, what right does a buying company have to take out withholding tax instead of going ahead to pay the amount it has been charged.

Asked by: delinsky 462 days ago - 1 Answers - 1329 views

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