10-26-2010, 03:24 PM
Dears,
Apart from the futile and nugatory debate of what is to be done and what is to be avoided.
Let me clarify that; tax should be withheld, whether the purchases are made from retailer or from any other person. However, tax may not be withheld if the retailer is a different person in all similar purchases.
Furthermore, retailer would, in most of the cases, refuse to withhold tax out of the purchases made from him, if this is materialize, then we are to see what law guides.
In this case, we will either to pay tax from our own or to insist the retailer to let us withhold the tax or to change the retailer. However, in all cases, tax should be withheld. In this regard, it should be noted that tax will be withheld if there is a reasonable certainty that purchases will exceed the prescribed limit, as provided in the ordinance.
However, if tax is not deducted based on the assumption that purchases will be lower than the threshold during a specific tax year, then retrospective tax deduction will be made in all subsequent purchases in that relevant tax year to equalize the tax deduction par with payment, if the purchases exceed the threshold during that specific tax year.
Let me know, if confusion is yet to be resolved.
Best Regards,
Faisal.
