why wood supplier is exempt from i tax deduction

Riftaj · 12-23-2009, 02:16 PM

hi

why wood supplier is exempt from i tax deduction?????????/

plz inform me hamara supplier wood provide karta almost 10 trucks in per month amount RS 12 Lac

kia hum payment ka waqat i tax deduct kary ga 3.5 % or Not????

if not plz tell me reason???/

Rifi

awaisaftab · 12-23-2009, 06:11 PM

Who says it is exempt. If any one claims exemptions require from him a valid Exemption Certificate,issued by Commissioner of I.T, or copy of any S.R.O or circulation/notification issued by FBR. The burden of proof lies on the shoulders of those we say that they are exempted from tax. According to my information no any such type of notification has not been issued by FBR.

LapTop · 12-23-2009, 07:23 PM

Its depend on, whether wood are imported or local.

Riftaj · 12-24-2009, 01:48 PM

thanks dear

but he says Agriculture items per tax nhi ha,

is liay tax nhi kat sukty.

Rifi

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by awaisaftab
 Who says it is exempt. If any one claims exemptions require from him a valid Exemption Certificate,issued by Commissioner of I.T, or copy of any S.R.O or circulation/notification issued by FBR. The burden of proof lies on the shoulders of those we say that they are exempted from tax. According to my information no any such type of notification has not been issued by FBR.
<hr height="1" noshade id="quote"></blockquote id="quote">

LapTop · 12-24-2009, 07:04 PM

but he says Agriculture items per tax nhi ha,
Hi, Income tax ITEM par nahi Income par lagta hay,,, or aap nay likha tha k wo Supplier hay or supplier ki Agriculture income nahi balky supplies ki income hoti hay,

faisal_desperado · 12-25-2009, 02:26 AM

Dear Riftaj,
If your supplier supplies wood from his own cultivations and no further processing is made thereof then his supplies will be exempted from WHT under section 153, since in such a case his supplies will be treated as agricultural supplies.
However, if he is not a cultivator or supplies is made after further process, then you will have to deduct tax under the said section regardless of his claims.

Be specific with your query so that better response may be provided by the members.

Reards,

Riftaj · 12-26-2009, 03:42 PM

thanks

yes he cultivat wood on his own land and sale us without any changing i mean without and further processing,

i think accourding to your answer he is exempted from i tax,

thnks dear,

Regards

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by faisal_desperado
 Dear Riftaj,
If your supplier supplies wood from his own cultivations and no further processing is made thereof then his supplies will be exempted from WHT under section 153, since in such a case his supplies will be treated as agricultural supplies.
However, if he is not a cultivator or supplies is made after further process, then you will have to deduct tax under the said section regardless of his claims.

Be specific with your query so that better response may be provided by the members.

Reards,
<hr height="1" noshade id="quote"></blockquote id="quote">

faisal_desperado · 12-27-2009, 07:09 PM

Dear,

Yes, he is exempted in such a case, however take an exemption certificate from him, so that you may show the same upon investigation to the authority.

Best Regards,

Riftaj · 12-30-2009, 02:27 PM

thanks dear.

Rifi

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by faisal_desperado
 Dear,

Yes, he is exempted in such a case, however take an exemption certificate from him, so that you may show the same upon investigation to the authority.

Best Regards,

<hr height="1" noshade id="quote"></blockquote id="quote">