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HELP: INCOME TAX ON CASH PURCHASE
10-18-2010, 08:36 PM
Post: #1
HELP: INCOME TAX ON CASH PURCHASE
AOA ALL

I am working in semi govt. department in lahore. recently we have to purchase few items for our new campus. We took advance payment and purchase the all items from market on cash basis means from local market we purchase every thing on cash payment. after that we took GST invoices from all three vendors.

Now the auditor from Auditor General department has raised a para that we should collect the income tax and we did not collected that income tax from shop keepers.

Kindly any one help me to solve this problem that how we can collect the income tax from the shop keepers on cash purchase.

Is there any notification related to expemption. because every one is saying verbally that there is no income tax on cash purchase / cash memos but no black & white proof.
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10-19-2010, 04:22 PM
Post: #2
 
CIRCULAR NO. 26 OF 1991 (INCOME TAX)dated 24th Aug, 1991

3. Exemption to recipients
The scope of exemption to recipients has also been enlarged through the
following measures.
(i) The monetary limit of exemption from deduction of tax from payments
account of supply of goods has been raised to Rs. 25,000/-. Previously the
laid limit was Rs. 10,000/- as notified vide SRO. 586(I)/91 of 30th June,
1991. In respect of payments made on account of services rendered or
execution of a contract, the monetary limit of exemption shall be Rs,
10,000/-. Now withholding tax shall not be deducted from the aforesaid
payments unless such payments exceed Rs. 25,000/- in the case of supply
of goods and Rs. 10,000/- in the case of services rendered or execution of
a contract, in a financial year. However, if such payments exceed the
above monetary limits during a financial year, then tax shall be deducted
from all payments exceeding the said limits. Tax shall also be deductible
on all such payments made earlier from which no deduction of tax was
made.
(ii) No tax shall be deducted from payments to be made to manufacturers who
produce a certificate from the Commissioner of Income-tax concerned that
they have assessed losses carried forward and therefore their income
during the income year is not likely to be chargeable to tax.
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10-19-2010, 07:39 PM
Post: #3
 
Zaidi bhai,,,,
Purchases do tarhan say ki jati han,,,,
1- Ap quotation laytyn hay or supplier ap ko item supply karta hay is surat may ap us ka withholding tax deduct kar sakty han, supplyer bhi aytraz nahi karta kyon k wo price may add kar k quotation karta hay.
2- Kuch purchases aap shops say ja kar karty han , aysi surat may shop kipper ap ko withholding nahi karny day ga, kyon k wo retail prise par aap ko item sale karta hay.

Ik retailer ki income supplies k nahi hoti hay, wo turnover par tax dayta hay is waja say aap us ki income par U/S 153(a) tax deduct nahi kar sakty,
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10-19-2010, 09:43 PM
Post: #4
 
LAPTOP BHAI

AGAR SHOP SE PURCHASE 25000 SE ZYADA KI HAI TO TAX TO KATNA PARE GA NA WITHHOLDING AGENT KO AGAR SHOPKEEPER NA BHI KATWAI TO WHT AGENT KO WO TAX APNI JAIB SE JAMA KARWANA PAREGA,

WHAT DO U SAY


REGARDS

ANFAL
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10-19-2010, 09:51 PM
Post: #5
 
AIK AUR BAAT

RETAILER APNA TURNOVER COMPUTE KARTE WAQT WO SALE JIS PAR WHT UNDER SECTION 153 KATA HAI EXCLUDE KARLE GA

REGARDS

ANFAL
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10-19-2010, 10:47 PM
Post: #6
 
Anfal bhai,,,

asal may ham withholding tax samny waly ki income par deduct karty han is waja say hamy ye daykhna chayea k samny waly ki income ki nature ki hay,,,,,,,

agar ik retailer hay to us ki retail income hay or us par retail tax yani k U/S 113 lagta hay,,,

jab wo retailer ap ko supplies day ga tab us ki nature of income supplies ki ho jaye gi, tab aap us ki supplies ki income par U/S153 withholding kar sakyn gay,

daykhay ham to koi bhi item purchase karyn gay to wo hamary liye to supplies hi hon gi,, par ham nay ye nahi daykhna k hamary liye wo kya han ham apnw tax thori withheld kar rahay hayn, ham to samny waly ka tax withhold kar rahay han na,, ho sakta hay samny waly ki retail income ho ya imports ki income ho to us par to U/S153 tax withheld nahi ho ga na,

han agar koi retailer or supplier dono hay to us ki jo retail ki income ho gi us par trunove tax day ga or jo supplies income ho gi us par U/S153 tax withheil ho jaye ga,,,,

to yahan ghor karny ki baat ye hay k samny waly ki nature of income kya hay, jo nature of income ho gi usi hisab say tax withheld ho ga,,,

ye to ap k sath zayadti ho gi na k ik retailer ap ko withholding na karny day or tax ap ko bharna par jaye,,,
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10-19-2010, 11:26 PM
Post: #7
 
TURNOVER TAX IS APPLICABLE VIDE SECTION 113B AND THERE IS A PROVISO IN THIS SECTION

1[Provided that turnover chargeable to tax under this
section shall not include the sale of goods on which tax is
deducted or deductible under clause (a) of sub-section (1) of
section 153.]

IS SECTION MAIN PROVRIDED HAI K RETAILER JAB WHT AGENT KO SUPPLY KARE GA TO US KA TAX DEDUCT HOGA,

PRACTICALLY AISA HOTA HAI K BOHAT SE LOG TAX KATWANE KO TAYAR NAHI HOTE MAJBOORAN WHT AGENT KO PHIR WO PRODUCT 3.5% MEHNGA KHARIDNA PARTA HAI, AUR TAX APNI JAIB SE JAMA KARWANA PARTA HAI JAISA K AAP NE PEHLE KAHA K LOG INCOME TAX KO APNI PRICE MAIN ADD KAR LETE HAIN

MERA OPINION YE HAI K AGAR AAP CASH PE BHI 25000+ KI PURCHASE KARO GE TO AAP BOOUND HAIN K AAP TAX DEDUCT KARAIN, LAW MAIN RETAILER K LIYE EXEMPTION U/S 153 KA KOI PROVISION NAHI HAI

BEST REGARDS


ANFAL
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10-19-2010, 11:50 PM
Post: #8
 
Anfal bhai,,,,

ap abhi bhi meri bat nahi samjhay,,

income tax na to supplier pay lagta hay na retailer pay,,,,, income tax income par lagta hay, isi liye nature of income ko daykha jata hay,,,,,

ap nay ye reference diya,,
"Provided that turnover chargeable to tax under this
section shall not include the sale of goods on which tax is
deducted or deductible under clause (a) of sub-section (1) of
section 153"

is para ko agar ghor say parhayn to is may 2 income ka zakar kiya gha hay, 1 income to saf saf nazar aa rahi hay jis par 153(a) tax withheld howa ho yani k supplies ki income, dosri income wo hay jis may supplies ki income shamil nahi ho gi jis par U/S153(a) tax withheil howa ho, ye retail ki income hay or is par trunover tax lagy ga,

ab sawal ye hay k us income par trunover tax kyon lagy ga? isi waja say lagy ga k is income par U/S153(a) tax nahi withheld ho ga, kyon k 1 income par 2 bar tax charge nahi ho sakta,

agar 1 LTU kisi retailer say purchasing kary to kya wo us par sales tax withheld kary ga? nahi kary ga ,,,,,,, kyon k retailer sales tax invoice issue hi nahi karta,,,,, wo sales tax bhi trunover par dayta hay,,,,,

daykhayn retail ki income or supplies ki income may mamoli sa farak hay,,, agar ap ik shaks ki shop par ja kar koi item purchase karty han to ye us shaks ki retail ki income hay, agar wohi shaks wohi item ap ko la kar dayta hay to ye ius ki supplies ki income ho gi,,, dono surton may us ka profit mukhtalif ho ga isi waja say tax rate bhi mukhtalif ho ga,

Anfal bhai zarori nahi k har baat kanon ki kitabon may likhi ho,,, aksar okat halat or wakayat say bhi samajhna parta hay...
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10-19-2010, 11:55 PM
Post: #9
 
1 bat or anfal bhai,,,

ap nay likha hay k,,,,
"IS SECTION MAIN PROVRIDED HAI K RETAILER JAB WHT AGENT KO SUPPLY KARE GA TO US KA TAX DEDUCT HOGA, "

jab retailer supplies day ga to wo retailer nahi rahay ga supplier ho jaye ga,

retailer kabhi supplies nahi dayta,,,

han 1 hi shaks retailer or supplier dono ho sakta hay, jis k liye hi ye para diya gya hay,,,,,
"Provided that turnover chargeable to tax under this
section shall not include the sale of goods on which tax is
deducted or deductible under clause (a) of sub-section (1) of
section 153"
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10-20-2010, 12:20 AM
Post: #10
 
LAPTOP BHAI

BEHAS YE NAHI K SHOP KEEPER RETAILER KEHLAI GA YA SUPPLIER, MASLA SIRF ITNA HAI K JO BHI SHAKS SUPPLY DEGA CHAHE US KA STATUS RETAILER HI Q NA HO AGAR US KI SALE VALUE 25000 SE ZYADA HAI TO TAX DEDUCT HOGA,

FBR YE KISI SOORAT ACCEPT NAHI KARE GA K AAPNE RETAILER SE PURCHASE KYA HAI IS LIYE TAX DEDUCT NAHI KYA

HAMARI TO YAHI PRACTICE HAI K JO SHAKS TAX DEDCUCT NAHI KARWATA HAM APNI JAIB SE WO TAX BHARTE HAIN RATES MAIN ADD KAR K, LEGAL POSITION TO YAHI HAI K WHT AGENT KO APNI PAYMENTS PAR TAX DEDUCT KARNA HAI, AAP KYA KEHTE HAIN

REGARDS

ANFAL
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10-20-2010, 12:25 AM
Post: #11
 
HAM EK KAAM AUR BHI KARTE HAIN WO YE KE MUKHTALIF RETAILERS SE CHOTE CHOTE BILLS LELETE HAIN WHT SE BACHNE K LIYE,
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10-20-2010, 08:24 PM
Post: #12
 
Anfal bhai, sorry to say , mujhay koi shok nahi hay bila waja bahas karny ka, asal may ghalti meri hay k jo baat may ap ko samjhana chah raha tha wo ap samajh nahi sakty.

May kabhi itni detail may answer isi waja say nahi karta hon, k samny wala confuse na ho jaye.
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10-21-2010, 12:23 AM
Post: #13
 
pata nahi aap kya kehna chahte hain jo meri samajh nahi araha, ye forum to hai hi behas karne k liye ek doosre k views share karne k liye, yahan constructive behas karne se sab ko faida hota hai aap ka kya khayal hai

Regards


Anfal
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10-21-2010, 08:08 PM
Post: #14
 
Anfal bhai,,,

May yahan sirf advice karny aata hon bahas karny nahi,,, bahas karny k liye mery pass dosra forum hay,,, agar ap wahan aa kar bahas karna chahaye to mujhay zayada khushi ho gi,,,,, par us k liye pahly aap ko wakalat ka licence layna pary ga.
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10-22-2010, 11:01 PM
Post: #15
 
Salam,

Dont be perosonal friendz. try to learn from these constructive side. Mr. Laptop has very constructive input in side always.

In my view we should see it as witholding agnet, if we comes in defination of withholding agent,we should withheld tax (if supplies increase Rs. 25000& services 10,000 in a year)regardless of its status(retailer). As law does not provide any provision for non withholding of tax.
As far as cocern our society and practicality of withholding tax from retailer, simply is not practical and most of the companies does not withheld tax on it.

Farhan
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