Acca Essay
SULTAN TAX ASSOCIATES TAX YEAR TAXATION OF WITHHOLDING TAX ON GOODS AND SERVICES 2012
WITHHOLDING TAX ON GOODS AND SERVICES TAX YEAR 2011 (1st July 2011 to 30th June 2012) [Provisions applicable w.e.f. 1.7.2011 onwards] 1) Section 153(1) of the Income Tax Ordinance, 2001 provides that every prescribed person making a payment in full or part including a payment by way of advance to a resident person or permanent establishment in Pakistan of a non-resident person: (a) (b) (c) for sale of goods; for rendering of or providing of services; or the execution of a contract, other than a contract for the sale of goods or rendering of or providing of services, SHALL, AT THE TIME OF MAKING THE PAYMENT, DEDUCT TAX FROM THE GROSS AMOUNT PAYABLE (including Sale Tax) AT THE RATE SPECEFIED IN DIVISION III OF PART III OF THE FIRST SCHEDULE. 2) EVERY EXPORTER OR AN EXPORT HOUSE making a payment in full or part including a payment by way of advance to a resident person or permanent establishment in Pakistan of a non-resident person for rendering of or providing of services of STICHING, DYING, PRINTING, EMBROIDERY, WASHING, SIZING AND WEAVING, shall at the time of making the payment, deduct tax from the gross amount payable at the rate specified in Division IV of the Part III of the First Schedule. [Sub-section (2) of section 153] o The following terms are defined in sub-section (7) of section 153 are as under: “PRESCRIBED PERSON” means: a) b) c) d) e) f) g) h) i) Federal Government A company An association of persons constituted by or under law. A non-profit organization A foreign Consultant and Contractor A Consortium or Joint Venture An exporter or an Export House for the purpose of Sub-Section (2) An association of persons having turnover of Rs.50 million or above in tax year 2007 or in any subsequent tax year or An individual having turnover of Rs.50 million or above in the tax year 2009 or in any subsequent year.
3)
“SERVICES” includes the services of accountant,
WITHHOLDING TAX ON GOODS AND SERVICES TAX YEAR 2011 (1st July 2011 to 30th June 2012) [Provisions applicable w.e.f. 1.7.2011 onwards] 1) Section 153(1) of the Income Tax Ordinance, 2001 provides that every prescribed person making a payment in full or part including a payment by way of advance to a resident person or permanent establishment in Pakistan of a non-resident person: (a) (b) (c) for sale of goods; for rendering of or providing of services; or the execution of a contract, other than a contract for the sale of goods or rendering of or providing of services, SHALL, AT THE TIME OF MAKING THE PAYMENT, DEDUCT TAX FROM THE GROSS AMOUNT PAYABLE (including Sale Tax) AT THE RATE SPECEFIED IN DIVISION III OF PART III OF THE FIRST SCHEDULE. 2) EVERY EXPORTER OR AN EXPORT HOUSE making a payment in full or part including a payment by way of advance to a resident person or permanent establishment in Pakistan of a non-resident person for rendering of or providing of services of STICHING, DYING, PRINTING, EMBROIDERY, WASHING, SIZING AND WEAVING, shall at the time of making the payment, deduct tax from the gross amount payable at the rate specified in Division IV of the Part III of the First Schedule. [Sub-section (2) of section 153] o The following terms are defined in sub-section (7) of section 153 are as under: “PRESCRIBED PERSON” means: a) b) c) d) e) f) g) h) i) Federal Government A company An association of persons constituted by or under law. A non-profit organization A foreign Consultant and Contractor A Consortium or Joint Venture An exporter or an Export House for the purpose of Sub-Section (2) An association of persons having turnover of Rs.50 million or above in tax year 2007 or in any subsequent tax year or An individual having turnover of Rs.50 million or above in the tax year 2009 or in any subsequent year.
3)
“SERVICES” includes the services of accountant,