Withholding Tax on Sales Tax zero rated taxpayers (Fieve Categories)

GOVERNMENT OF PAKISTAN
REVENUE DIVISION
FEDERAL BOARD OF REVENUE

Islamabad, the 1st April, 2011.

NOTIFICATION
(Income Tax)

S.R.O. 288 (I)/2011.- In exercise of the powers conferred by sub-section(2) of section 53 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Government is pleased to direct that the following further amendments shall be made in the second schedule to the said Ordinance, namely:-

In the aforesaid Schedule, in Part-IV, after clause (45), the following new clause shall be inserted, namely:-

"(45A) (a) The rate of deduction of withholding tax under clauses (a) and (b) of sub-section (1) of section 153 shall be one percent on local sales, supplies or services made or rendered to the following categories of sales tax zero-rated taxpayers, namely:-

(i) textile and articles thereof;

(ii) carpets;

(iii) leather and articles thereof including artificial leather footwear;

(iv) surgical goods; and

(v) sports goods;

(b) provisions of clause (a) of sub-section (1) of section 111 of the Income Tax Ordinance, 2001 (XLIX of 2001) shall not apply to the amounts credited in the books of accounts maintained for the period ending the 30th June, 2011 by the sellers suppliers, service providers to the categories of sales tax zero-rated taxpayers as mentioned at sub-clause (i) above; and

(c) provisions of sub-clauses (a) and (b) above shall be applicable only to new cases of sellers, suppliers, service providers of the above mentioned categories of sales tax zero-rated taxpayers, who get themselves registered by the 30th June, 2011."

[C.No.1(21)WHT/2006]

( KHAWAR KHURSHID BUTT )
MEMBER (INLAND REVENUE)/
ADDITIONAL SECRETARY