03-25-2010, 03:29 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Jay</i>
<br />Few more questions please,
1. If the NGOs doesn't withheld taxes on supplies,would it be a violation of Sec 153(1)(A)???
2. Is there any space in tax regulations to avoid the responsibility of tax withholding???
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Ans 1
NGO's are under legal obligation to deduct WHT as per rates specified in the Income Tax Ordinance, 2001. So if any NGO do not deduct WHT tax then it is confirmed violation of section 153 and any other relevent section of ITO,2001.But keep it in mind the minimum supplies should be Rs.25,000/- per year no WHT shall be deducted the supplies below this limit. You are required to make judgment that the supplies which are purchased by you from a particular vendor would reach at this limit or not. For instance you are purchasing stationery from a vendor the average value of supplies is Rs.1500 per month then you will not deduct WHT. Hence the total amount of stationery purchased will be 18000/- (1500x12). Keep it in mind that under section 165 of ITO ordinance you are also liable to file Statement of Collection/Deduction of tax for each month till 20th day of succeeding month. If any organization, liable to deduct WHT under the provisions of ITO, does not deduct WHT or file statement of Collection/Deduction of tax then it will be penalized under sub section 2 & 3 of section 182 and under section 161 of ITO if any person/ organization fail to deduct WHT then it shall be personally liable to pay WHT.
Ans 2
As per my information there is no such space or relaxation is available in tax law. However if a vendor produces âExemption Certificateâ then no WHT shall be deducted.
Regards,
Awais Aftab
<br />Few more questions please,
1. If the NGOs doesn't withheld taxes on supplies,would it be a violation of Sec 153(1)(A)???
2. Is there any space in tax regulations to avoid the responsibility of tax withholding???
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Ans 1
NGO's are under legal obligation to deduct WHT as per rates specified in the Income Tax Ordinance, 2001. So if any NGO do not deduct WHT tax then it is confirmed violation of section 153 and any other relevent section of ITO,2001.But keep it in mind the minimum supplies should be Rs.25,000/- per year no WHT shall be deducted the supplies below this limit. You are required to make judgment that the supplies which are purchased by you from a particular vendor would reach at this limit or not. For instance you are purchasing stationery from a vendor the average value of supplies is Rs.1500 per month then you will not deduct WHT. Hence the total amount of stationery purchased will be 18000/- (1500x12). Keep it in mind that under section 165 of ITO ordinance you are also liable to file Statement of Collection/Deduction of tax for each month till 20th day of succeeding month. If any organization, liable to deduct WHT under the provisions of ITO, does not deduct WHT or file statement of Collection/Deduction of tax then it will be penalized under sub section 2 & 3 of section 182 and under section 161 of ITO if any person/ organization fail to deduct WHT then it shall be personally liable to pay WHT.
Ans 2
As per my information there is no such space or relaxation is available in tax law. However if a vendor produces âExemption Certificateâ then no WHT shall be deducted.
Regards,
Awais Aftab
