Accountancy Forum

Hi

First of all I would appreciate the effort for this web site. No doubt it's a very usefull resource available about tax related queries.

My question is whether NGOs are exempted from WHT & GST on purchases? If yes, can anyone let me know the SRO reference issued by CBR/FBR?

Thanks

Salman

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by sulche</i>
<br />Hi

First of all I would appreciate the effort for this web site. No doubt it's a very usefull resource available about tax related queries.

My question is whether NGOs are exempted from WHT & GST on purchases? If yes, can anyone let me know the SRO reference issued by CBR/FBR?

Thanks

Salman
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Dear,
The question you asked has not been clearly stated any where in the ordinance, only the relevant is the business to be conducted as charitable purposes i.e. Exemptions from taxation are governed by the definition of the term “charitable purposes”.which has been defined as "“Charitable purpose includes relief of the poor, education, medical relief and the advancement of any other object of general public utility.”

Almost all NGOs/NPOs provide the services which comes under the defination of Charitable purpose, hence all NGOs may be exempted, however you need to collect an exemption certificate from the income tax authority, so that no tax will be withheld if the same is shown.

Let me know if confusion exists.

Regards,