02-19-2015, 02:07 PM
Renting of Vehicles-Provisions of Section 50(4) are applicable;
following is the text of CBR's letter C.No 1(17)WHT/91 dated November 18,1992;-
"I am directed to refer to your letter dated 5-10-1992 on the subject and to say that renting of vehicles amounts to provision of services to which provisions of section 50(4) of the Income Tax Ordinance, 1979 are applicable. The payments for services are subject to deduction of tax @ 5%".
Rent a car is a service which doesn't fall under transport services, hence the higher rate of services will be applied. Company 8% and Others 10%
following is the text of CBR's letter C.No 1(17)WHT/91 dated November 18,1992;-
"I am directed to refer to your letter dated 5-10-1992 on the subject and to say that renting of vehicles amounts to provision of services to which provisions of section 50(4) of the Income Tax Ordinance, 1979 are applicable. The payments for services are subject to deduction of tax @ 5%".
Rent a car is a service which doesn't fall under transport services, hence the higher rate of services will be applied. Company 8% and Others 10%
