A government agency hired several job-order contractors for its temporary needs. It also retained the services of a VAT-registered building contractor for its proposed new office building. 

The contractor billed P3,360,000 for project completion during the month. Gross payments for job order contractors who are paid P300,000 a year totaled P2,000,000. P1,200,000 of this were payments for job contractors who did not submit an affidavit on their gross receipts. 

Required: 

1. Compute the VAT to be withheld and the expanded withholding taxes deductible from the building contractor. 

2. Determine the withholding percentage tax and the expanded withholding taxes against the receipts of the job order contractors.

Answer rating: 100% (QA)

aVAT to be withheld P3360000 x 12 P403200 Expanded withholding taxes deductible ... View the full answer