Calculation of WHT on Rent

[faisal_desperado]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by awaisaftab</i>
<br />How the WHT on rent is calculated? Suppose a company pays rent of Rs. 1300,000/- to other company in lump sum for the period of more than one month and then what will be the exact amount of WHT.

Regards,

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

Rs. 95,000 is to be withheld on payment of rent of Rs. 1,300,000 <b>to company</b>,
The same amount of tax is to be withheld by the tenant, which is the actual tax liablity of property owner under section 155,

In this regard note the following ( Rate of Tax for companies u/s 155)

(1)Where the gross amount of rent does not exceed Rs.400,000,
5 per cent of the gross amount of rent.

(2)Where the gross amount of rent exceeds Rs.400,000 but does not exceed Rs.1,000,000.
Rs.20,000 plus 7.5 per cent of the gross amount of rent exceeding Rs.400,000.

(3)Where the gross amount of rent exceeds Rs.1,000,000
Rs.65,000 plus 10 per cent of the gross amount of rent exceeding Rs.1,000,000.”

Calculate on the basis of above, it will amount to Rs.95,000

Best Regards,