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our organization has purchased software from local market. is it exempted from withholding tax or not?
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by zara khan</i>
<br />our organization ve purchased software from local market.is it exempted from withholding tax or not?
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Computer softwares are designed/prepared by programmers, who come under the ambit of section 153(1)b, hence 6% tax will withheld on the invoice amount.

Regards,
no not exempted, whenever you will pay the amount of that software you must deduct 6 % I tax from whole amount of bill, than you will pay it, the amount of I tax you must be return, you have to make this entry for I tax purposes,, DR Supplier(provider name) CR I Tax deducted from Supplier head,

Thanks

Regadss
Accounts Manager
Rifi

ote]<i>Originally posted by faisal_desperado</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by zara khan</i>
<br />our organization ve purchased software from local market.is it exempted from withholding tax or not?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Computer softwares are designed/prepared by programmers, who come under the ambit of section 153(1)b, hence 6% tax will withheld on the invoice amount.

Regards,
[/quote]
what would be the rate of withholding tax on purchasing of anti-virus software.
If u r purchasing from retailer, u cant deduct WHT , if u r purchasing from supplier & u r WH agent U/S 153 then u shell deduct WHT @ 3.5%,
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by zara khan</i>
<br />what would be the rate of withholding tax on purchasing of anti-virus software.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Dear,

This query needs clarification,
If the said software has been purchased on the basis of a contract, which stipulates conditions with regards to the post acquisition services/traning etc, then the same must be taxed at the rate of 6%.

However, if the software has simply been purchased from a supplier and no stipulations have been made, then it should be treated as a purchase of good, and accordingly the rate of tax should be 3.5%.


Let me know, if confusion still exist.


Best Regards,

“retailer” means a person selling goods to general public for the purpose of consumption;
I think zara purchased software for use, not for resale.
One more thing, what if one purchases online while paying through the credit card. There will be no 3.5% or 6% deduction? How can a limited company in such way?
I just wanted to talk about the monetary limits. The witholding tax shall be deducted @6% (Services etc.) if the aggregate amount exceeds Rs.10,000/-