Tax provision on the purchase receipt not removed on the invoice

I am having a serious challenge.
In our Purchase receipt, we do add Value Added Tax (VAT) as a markup. (Because suppliers send their invoice TAX INCLUSIVE)
I created the Value Added Tax on Purchase template and manually add it to every purchase receipt to mark it up.

Then on the Purchase invoice, we are meant to use another Purchase Tax template that serves as withholding to remove the VAT element from the purchase receipt and some other statutory deductions like WHT(5%) and STAMP DUTY(1%) from the purchase invoice before it goes for payment.
So, I created another purchase tax template called Statutory Deduction that contains: (WHT 5%, VAT 7.5%, STAMP DUTY 1% ) (but this time as DEDUCT, unlike the one I used on the Purchase Receipt that’s ADD.
I applied it to the Purchase invoice I Created from that purchase receipt.

Instead of the VAT component to nill of the additional tax i added on the purchase receipt, it deducted another VAT while deducting the WHT and STAMP DUTY.
I expected the system to use my VAT on the Statutory deduction template to offset the markup I earlier did on the purchase receipt so that the supplier can bear only the WHT and STAMP DUTY.

I have created VAT on Purchase Tax Template(Tax Type is ADD) for the Markup

I have also added the VAT to my Purchase receipt and it increased my *Grand Total as i expected,but when i Save and submit the Purchase Receipt, the Tax amount is not appearing on the Tax Ledger.

I have also applied the Statutory deduction on the purchase invoice as shown but the VAT here is not billing of the VAT i added on the purchase receipt, hence it is now extra charge on the supplier

@JayRam I will appreciate it if you can also help