Complete Withholding Income Tax & Sales Tax on Services Laws and Practice In Pakistan
Income Tax Ordinance 2001 & Sales Tax on Services Acts
Withholding Tax Regime
Guidelines for the Taxpayers, Tax Collectors & Withholding Tax Agents
Updated Finance Act, 2017
• Commentaries on Sections of Advance tax and collection/deduction of tax at source, under:
• The Income Tax Ordinance 2001;
• The Income Tax Rules 2002;
• Sales Tax on Services Acts (Provincials);
• Sales Tax Special Procedure (Withholding) Rules 2007;
• Sales Tax Special Procedure (Withholding) Rules 2011;
• Sales Tax Special Procedure (Withholding) Rules 2014;
• Sind Finance Act 2017;
• Second Schedules of (Income Tax & Sales Tax Services);
• References, SROs, Circulars and law cases.
CONTENTS IN BRIEF
Income Tax Ordinance 2001.
1. Administration of tax authorities.
2. Principles of charge of tax.
3. Computation of taxable income.
4. Advance tax paid by the taxpayer.
5. Tax paid to a Collection Agent-Import.
6. Deduction of tax at sources.
7 Transitional WHT Provisions.
8. Time of Deduction of tax.
9. Issue of exemption or lower rates certificate.
10 Payment of tax collected or deducted.
11 Failure to pay tax collected or deducted.
12. Recovery of tax, paid without WHT.
13. Recovery of tax payable to Commissioner.
14. Certificate of collection or deduction of tax.
15 Statements to be furnished/ E-filing etc.
16. Furnishing of information by banks.
17. Furnishing of information by financial institutions
18. Treatment/priority of tax withheld.
20. Credit for tax collected or deducted.
21. Tax collected or deducted as a final tax.
22. Detail of Final, Adjustable and Minimum WHT.
23. Presumptive Tax Regime.
24. Responsibilities, functions, etc.of WAgents.
25. Commissioners’ powers for audit, monitoring etc.
26. Refunds of excess WHT.
27. Additional payment for delayed refunds.
28. Offences, penalties, Default Surcharge.
29. Offences by companies and AOPs.
30. Reduction in default surcharge.
31. First Schedule- rates of income tax.
32. Second Schedule- exemptions, concessions etc.
33. References: Income Tax Rules 2002, FBRs SROs, Circulars,etc.
The provisions of each of the above mentioned sections are discussed at length with explanatory notes in simple language,, supported with the SROs or Circulars of the FBR and the case laws, wherever it is required, making the laws easily understandable by the withholding agents or the person concerned to enable them for implementation.
CONTENTS IN BRIEF
Sales Tax on Services Acts
I. Sales Tax Special Procedure (Withholding) Rules 2007
II. Sindh Sales Tax Procedure (Withholding) Rules,2011,2014
III. Appointment of authorities & their Powers
IV. Scope of sales tax on services-Definitions of terms etc.
V. Registration and De-Registration-Types of registration
VI. Filing of Returns- Requirements/Procedures etc.
VII. Procedure for Collection of Sales Tax on Services
VIII. Adjustment of Input tax and tax paid
IX. Book Keeping and Audit Proceedings
X. Offence, Penalty and Default Surcharge
XI. SECOND SECHEDULE-Services subject to sales tax/rates
XII. SINDH FINANCE ACT 2017- Commentary of amendments
XIII. NOTIFICATIONS – SRB- Extension of sales tax-services
CONTENTS OF THE WHT BOOK:
• Explanatory notes on each provisions WHT of the Income Tax Ordinance 2001 and Sales Tax on Services Acts;.
• Explanation whether WHT is Final, Minimum or Adjustable;
• First Schedule, rates of tax chargeable under each section;
• Second Schedule, Exemptions, Concessions, Reduction in tax rates, explained with reference to Clauses and sections;
• Second Schedule-services liable to WH Sales Tax and rates;
• Obligations of the Withholding Tax Agents;
• References of FBR’s clarifications Circulars, Letters or SROs;
• Procedure of issuance by the Commissioner the exemption or educed rate or Nil tax certificate is explained in detail;
• Requirements for filing of WHT-statements; monitoring-audit, consequences of non-compliance, penalties etc.
|Author:||M Iqbal Patel|