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+--- Thread: Tax deducted at source (/showthread.php?tid=10573)
Tax deducted at source - r-a-z-a - 11-04-2011
Assalam o alaikum
The question I need help about is related to deduction of tax at source.
I want to know when a company purchases a fixed asset, would it have to deduct 3.5% tax at source as per Section 153(1) of Income Tax Ordinance 2001?
I could not find it on the website so I am asking it here. Please help.
- student_of_law - 11-17-2011
According to s.153, when a company makes payment with respect to sale of goods, it is liable to deduct tax. Whether the goods fall within the category of fixed asset or current assets is not relevant.
As long as property falls , within the scope of "goods", tax is to be deducted while making payment for it.
When bank orders for computers, while making payment <b>it will deduct tax</b>; as the computers fall withing the category of goods.
When Z Limited , makes payment for goodwill ,<b>it will not deduct</b> tax as goodwill is not goods
When Y Limited, makes payment for immovable property , <b>it will not deduct</b> tax because immovable property is not goods.
- danishayub_76 - 11-22-2011
Dears!
I have a question. If a company deducted withholding tax at source from payment/account. how can i verify that the company has paid the tax.
regards