10-03-2009, 05:32 AM
Dear Farhan and Awais,
Although a correct section has been quoted, which indicates that tax should be deducted at the time of payment, however the section does not reveal any thing with regards to the transaction period, this is not staggering that the tax should be deducted at the time of payment, definitely, tax will always be deducted at the time of payment and it can not be deducted before payment is made.
Furthermore, almost all the payments of goods and services are paid in the starting of the next month, likewise, Goods and services purchased in the month of June is paid in the next month i.e. July but still the rates applicable in June hold good.
Salaries of employees under section 149, for the month of June is paid in the 1st quartile of July, in most of the cases, however the same tax rates are applied as applicable in June, regardless of the fact that the tax rates have been revised for the next tax year.
I expect the said examples are sufficed.
Regards,
Although a correct section has been quoted, which indicates that tax should be deducted at the time of payment, however the section does not reveal any thing with regards to the transaction period, this is not staggering that the tax should be deducted at the time of payment, definitely, tax will always be deducted at the time of payment and it can not be deducted before payment is made.
Furthermore, almost all the payments of goods and services are paid in the starting of the next month, likewise, Goods and services purchased in the month of June is paid in the next month i.e. July but still the rates applicable in June hold good.
Salaries of employees under section 149, for the month of June is paid in the 1st quartile of July, in most of the cases, however the same tax rates are applied as applicable in June, regardless of the fact that the tax rates have been revised for the next tax year.
I expect the said examples are sufficed.
Regards,
