In the current finance bill presented, it has been proposed that commercial importers will be charged 4% income tax as compared to 2% in the previous bill. One more amendment has been made and that is thsi 4% income tax has been classified as minimum tax.
I need to understand what implications will it have on the commercial importers?
Can any one please explain this?
Omeir,
Please go through
<b><u>SALIENT FEATURES FOR THE BUDGET 2009-10</u>, </b> <u><b>Revenue Measures</b></u> The following is being quoted from there,
⢠"Before amendment made through Finance Act, 2008 withholding tax on imports was collected @ 5% which was reduced to 2%. The benefit of reduction in tax rate could not be passed on to end users therefore, the rate is proposed to be enhanced to 4% across the board."
Apparently, It may be said that , Import Tax was reduced to 2% on the grounds that end users will be benefited, <b>(Since Tax reduced to 2%, prices of import goods should have been reduced but no benefit seen as envisaged,)</b> on account of tax reduction, since no benefits to general public, rate has been increased upto 4% ,i.e.
When benefit is not provided to end users and importers started increasing their own income, then why not this income should be generated in favour of FBR instead of Importers?
Best Regards,
Thanks for the explanantion.
What i would like to know is that since now commercial importers have been shifted to the minimum tax regime from final tax regime, what effects will it have on
a) sole proprietors
b) aop
c) limited companies (private or public)
As far as i understand they will have to file a return i.e prepare p/l accounts and show how much they earned during the year and then the tax rates will apply and they will have to pay.
If my understanding is correct, then what rates would apply to the above?