Accountancy Forum

Hello Dear Members

There's a problem I want to share with you. When we pay some amount to a foreigner consultant you have to deduct tax @15 under secion 6 of Income Tax Ordinance 2001. Am I right ?

Is there any other way of paying to a foreigner so that there may be a relaxtion in tax rate.

www.thezee.com

Dear rates are specified in Deivision IV of Part I of first schedula or Income Tax ordinance 2001. i.e. 15%

u r right.

Well if u r a resident person and making a payment to a foreinger then u must deduct tax at the rate specified. i.e. 15%.
The only relaxation is if ur office is situated outside Pakistan and the payment is made to foreign consultant for service rendered for ur office abroad then u can make payment without deduction of tax.