Tax on purchase of Software

[Riftaj]

no not exempted, whenever you will pay the amount of that software you must deduct 6 % I tax from whole amount of bill, than you will pay it, the amount of I tax you must be return, you have to make this entry for I tax purposes,, DR Supplier(provider name) CR I Tax deducted from Supplier head,

Thanks

Regadss
Accounts Manager
Rifi

ote]<i>Originally posted by faisal_desperado</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by zara khan</i>
<br />our organization ve purchased software from local market.is it exempted from withholding tax or not?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Computer softwares are designed/prepared by programmers, who come under the ambit of section 153(1)b, hence 6% tax will withheld on the invoice amount.

Regards,
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