07-02-2009, 03:55 PM
Withholding tax always be payable after the payment to supplier/employee. it means tax payable should be booked/incorporate in book of accouts at he time of payment not at the time of accrual. In your case if you have made payment after June 30, 2009, you should book party at gross amount(tax payable should not be booked).For your reference 153 section available
153. Payments for goods and services.- (1) Every prescribed person making
a payment in full or part including a payment by way of advance to a resident
person or permanent establishment in Pakistan of a non-resident person -
(a) for the sale of goods;
(b) for the rendering of 1[or providing of] 2[ ] services;
(c) on the execution of a contract, other than a contract for the
3[sale] of goods or the rendering of 4[or providing of] 5[ ]
services,
shall, at the time of making the payment, deduct tax from the gross amount
payable at the rate specified in Division III of Part III of the First Schedule
153. Payments for goods and services.- (1) Every prescribed person making
a payment in full or part including a payment by way of advance to a resident
person or permanent establishment in Pakistan of a non-resident person -
(a) for the sale of goods;
(b) for the rendering of 1[or providing of] 2[ ] services;
(c) on the execution of a contract, other than a contract for the
3[sale] of goods or the rendering of 4[or providing of] 5[ ]
services,
shall, at the time of making the payment, deduct tax from the gross amount
payable at the rate specified in Division III of Part III of the First Schedule
