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+--- Thread: EXEMPTION REGARDING IT SERVICES (/thread-exemption-regarding-it-services)
EXEMPTION REGARDING IT SERVICES - Farhan2009 - 06-11-2009
1[(133) Income from exports of computer software or IT services or IT enabled
services upto the period ending on 30th day of June, 2016.
Explanation.- For the purpose of this clause â
(a) âIT Servicesâ include software development, software
maintenance, system integration, web design, web
development, web hosting, and network design, and
(b) âIT enabled servicesâ include inbound or outbound call
centres, medical transcription, remote monitoring, graphics
design, accounting services, HR services, telemedicine
centers, data entry operations 2[, locally produced television
programs] and insurance claims processing.]
I JUST NEED TO CLARIFY WHEATHER THE ABOVE IT SERVICES IS ONLY FOR EXPORTERS OR FOR EVERYONE WHO IS PROVIDING IT SERVICES.
- faisal_desperado - 06-11-2009
Farhan, This section is only applicable with regards to Export of IT services and IT enabled services, in this regard, amount should be transferred through a normal banking channel by telegraphic transfer so that the correspondence Bank issues a certificate, which indicates that the said remittance has been received on account of Export of IT services so that the same is accepted by the Tax Authority and such income is considered as exempted.
Best Regards,
- Farhan2009 - 06-20-2009
Faisal bhai r u sure that this section is only applicable for export of IT Services etc.. It means if any body providing IT services in Paksitan is not exempt and withholding tax @ 6% is deducted on payments to them.
- faisal_desperado - 06-20-2009
My Dear,
Clause 133 specifically indicates that "Any income from the <b>export</b> of computer software, IT Services or IT enabled services is exempt from tax upto 30-06-2016"
This is authentic information.
If any of the stated services (as mentioned u/s 133) is being provided in pakistan then Tax @ 6%(*) will be deducted at the time of payment.
(*) 6% WHT will be deducted on services whether it is IT services or any other (except those which are specifically provided in the ordinance)
Best Regards,