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Full Version: SRO 288 (1) 2011
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Am I correct that as per the above mentioned SRO only NEW sellers or service providers (selling or rendering to 5 sectors and getting registered by 30 June 2011) will deduct W.H.T on supply of goods or rendering of services (u/s 153) @ 1% and others will deduct @ 3.5% or 6% respectively?.
As per the reporting of buisness recorder correspondent u r thinking in the right direction.
http//www.brecorder.com/component/news/single/623news.html?id=1173701
Read the above link for reference .
IT MEANS ONLY NEW REGISTERED PERSON WILL GET LESS RATE AS 1% INSTEAD OF 3.5%
Thanks abirtax and information consultant.
http//www.fbr.gov.pk/dotnet/customs/admin/sroFiles/Direct%20Tax/2011/2011sro288.pdf

Dear you can follow the above link for the complete information.

To explain it (totally in my point of view ), 2nd schedule is about exemptions Part iv for 2nd schedule is general exemption from specific provision. Its mean if there is any prescribed person mentioned in section 153 of income tax ordinance2001, it will not deduct tax @ 3.5/6 % for these 5 categories. Instead tax to deducted @ 1 % before payment to these 5 person categories.

Also provisions of Section 111 do not apply i.e."if person offers no explanation in this respect".

This SRO i think is provided to promote more & more zero rated goods in tax net.
THANKS FIRST,
SECONDLY PLEASE RE-READ LAST PARAGRAPH OF QUOTED SRO AND THEN CLARIFY.
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