02-17-2009, 12:59 AM
I would try to Explain u some Definition.
<b>Commercial Importer-</b> who are they Import Goods & as it is Sales
<b>Local Supplier-</b> They Purchase Goods Locally and Supply as is it.
<b>Manufacturer-</b> They Import & locally Purchase Goods or materials for any process which substantially changes their original condition or Shape.
If Commercial Importer Imports Goods or Material, at the time of Imports he Pay the Advance Tax U/S148 @ of 2%, because that he will discharge from full and final Tax liability, its FTR, he need to collect Tax Exemption certificate U/S159 from Income Tax commissioner. In light of Exemption Certificate no one can Collect or Deduct withholding Tax on Supplies of Imported Goods U/S 153.
If Local Supplier supplies the goods or material as it is to the Purchase, & purchaser at the time of making payment Deduct or collect amount U/S 153 @ of 3.5%, it is FTR,
If Commercial Importer Imports Goods or Material & Local supplier Purchase Goods or Material & change their original Condition or Shape any kind, so they will skip from their Definitions and they will Conceder as Manufacturers.
So I think Now u Should Understand that,,,, The ABC company is Manufacturing Company, because they Imports Zips and some work on it, so Its income is Normal Taxable Income, u Should Calculate Taxable Income Normally, & u can Adjust withholding tax paid on Import & supplies of goods.
<b>Commercial Importer-</b> who are they Import Goods & as it is Sales
<b>Local Supplier-</b> They Purchase Goods Locally and Supply as is it.
<b>Manufacturer-</b> They Import & locally Purchase Goods or materials for any process which substantially changes their original condition or Shape.
If Commercial Importer Imports Goods or Material, at the time of Imports he Pay the Advance Tax U/S148 @ of 2%, because that he will discharge from full and final Tax liability, its FTR, he need to collect Tax Exemption certificate U/S159 from Income Tax commissioner. In light of Exemption Certificate no one can Collect or Deduct withholding Tax on Supplies of Imported Goods U/S 153.
If Local Supplier supplies the goods or material as it is to the Purchase, & purchaser at the time of making payment Deduct or collect amount U/S 153 @ of 3.5%, it is FTR,
If Commercial Importer Imports Goods or Material & Local supplier Purchase Goods or Material & change their original Condition or Shape any kind, so they will skip from their Definitions and they will Conceder as Manufacturers.
So I think Now u Should Understand that,,,, The ABC company is Manufacturing Company, because they Imports Zips and some work on it, so Its income is Normal Taxable Income, u Should Calculate Taxable Income Normally, & u can Adjust withholding tax paid on Import & supplies of goods.