Accountancy Forum - Collection/Deduction of Direct Tax u/s 149 & 165

Salam to all,

I hav been working with a Trading Firm for 3 months and the firm is registered in Sales Tax also have a NTN, I wanna asked about the Direct Tax which we collect from employees and parties,

The firm was established in July 2009, not completing a year.

As per my knowledge if any firm has its turnover above 5 Million responsible to collect such taxes. I m not damm sure about it, however some of our employees are crossing the limit of 200,000/- can any one guide me?

First of all let me correct you on a basic point.

If an AOP is registered then it is obliged to deduct Tax regardless of its turnover for the year"

AND

If in AOP is unregistered than it is obliged to deduct tax of payments for goods or services (Including employees) only if its Turnover is 50 Million Rupees or above for the Tax year 2007 and onwards. The limit is 50 miilion not 5 million. (U/s 153 (9) sub section (g) of Income Tax Ordinance, 2001)

Having explained that, If your AOP is unregistered and its annual turnover is exceeding Rs. 50 Million for the current Tax year 2010 then your AOP has liability to deduct 3.5 % tax on purchase of goods, 6% tax on Services and on Salaries to employees according to the prescribed rates for salaries, U/s 153 and 149 of Income Tax Ordinance, 2001

Ap agar Unregesterd Aop Ho to is Sections may withholding Agent ho gayâ¦ 149, 152(1), 152(1A), 152(2),153A, 156, 156A, 233

Or agar app registered AOP ho ya unregistered AOP or or turnover fifty million say zayada hay to is section may withholding agent ho gay,, 149, 152(1), 152(1A), 152(2),153(1), 153(1A), 153A, 156, 156A, 233

So its mean we have to deduct taxes from our payments in future but what about the previous payment in which we did not hold any tax from the salary or other payments. How can we justify this?

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Sarfaraz.alam
 So its mean we have to deduct taxes from our payments in future but what about the previous payment in which we did not hold any tax from the salary or other payments. How can we justify this?
<hr height="1" noshade id="quote"></blockquote id="quote">

First make it clear that your firm's Turnover is either exceeding Rs. 50 Million or it is registered with Registrar of Firms (Like Pvt. Companies are registered with SECP, firms are registered with registrar of firms). For the purpose of all of above discussion Registration with Sales Tax Department does not mean a Registered AOP/Firm.

Dear , samis899 nay sahi bataya hay aap ko,,,,,
Agar aap Ki AOP(Firm) ka NTN or STRN hay to is ka ye matlab nahi k aap registered AOP(Firm) ho, Registered AOP(Firm) sirf wo hi hay jo Registrar of Firm k pass register hoti hay or wahan say aap ko registration certificate milta hay jis par Firm Registration Number likha hora hay, or usi Firm registration Number ki base par aap ko NTN or STRN issue hota hay.

So how can I find that my firm is register in Registrar of Firm.

I've the copies of NTN & Sales Tax Certificates.

App ki Firm k NTN par Status/Nature ki jaga par agar registerd firm likha hay to aap ki firm registerd hay or agar wahan AOP likha hay to aap ki firm registerd nahi hay.

I found following information from NTN

Category AOP
Status Resident
Tax Office RTO Karachi

Contact the higher official of your firm. If your firm has registration certificate then it will clear.

App Unregisterd Firm ho

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by LapTop
 App Unregisterd Firm ho
<hr height="1" noshade id="quote"></blockquote id="quote">

Thanks for ur reply...

If the firm is unregistered, then should we deduct/held tax on salary and other payments as per their rates in future?

and wat u suggest me for past few months in which we did not held any tax.

Aap kyon k Unregistered AOP han is liye aap sirf salary k liye hi withholding karyn gay.
(Kyon k mery hisab say aap U/S 152(1), 152(1A), 152(2),153A, 156, 156A, 233 koi payment nahi kar rahy hon gay)
Is liye aap agr ap apny kisi employee ko 16,666/= say rupees ya is say zayada pay kar rahy hay, ya us ki monthly salary Taxable income 16,666/ rupees ya is say zayada hay to aap us ki Tax liability nikalyn or tamam pichly mahino ka Tax withheld kar k jama karwa dayn.

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by LapTop
 Aap kyon k Unregistered AOP han is liye aap sirf salary k liye hi withholding karyn gay.
(Kyon k mery hisab say aap U/S 152(1), 152(1A), 152(2),153A, 156, 156A, 233 koi payment nahi kar rahy hon gay)
Is liye aap agr ap apny kisi employee ko 16,666/= say rupees ya is say zayada pay kar rahy hay, ya us ki monthly salary Taxable income 16,666/ rupees ya is say zayada hay to aap us ki Tax liability nikalyn or tamam pichly mahino ka Tax withheld kar k jama karwa dayn.

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

Thanks alot for helping me

JAZAKALLAH