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IT ENABLED SERVICES
10-29-2011, 05:01 PM,
#1
IT ENABLED SERVICES
hi

can any body plz explain the following points ( just revising my studies)

1; I.T enabled services are exempt at present in Pakistan. But what if the foreign country is deducting tax at source . We all know that we can claim "lower" of local or foreign tax credit in Pakistan.

2When income is exempt does a person need 2 register with the inc tax deptt and the person is "salaried class" and emploeey's income exceeds the limits to register (i think one need to ) ?

3 provision that where an employer furnishes annual income statement with the i.tax dptt its enough but what when employer is foreigner and have no branch/office in pak (as in these dyas all i.t enabled services) ?

i just mixed all points . Its examiner's fav. topic all time so will need to discuss it besides studying .

Thx








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10-30-2011, 12:07 AM,
#2
 
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by wicky</i>
<br />hi

can any body plz explain the following points ( just revising my studies)

1; I.T enabled services are exempt at present in Pakistan. But what if the foreign country is deducting tax at source . We all know that we can claim "lower" of local or foreign tax credit in Pakistan.

2When income is exempt does a person need 2 register with the inc tax deptt and the person is "salaried class" and emploeey's income exceeds the limits to register (i think one need to ) ?

3 provision that where an employer furnishes annual income statement with the i.tax dptt its enough but what when employer is foreigner and have no branch/office in pak (as in these dyas all i.t enabled services) ?

i just mixed all points . Its examiner's fav. topic all time so will need to discuss it besides studying .
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

According to s.103 foreign tax credit is <u><b>lesser of</b></u>
(a)Tax paid in foreign country
(b)tax payable in Pakistan on that income

As in respect of exempt income, component (b) is zero. So tax credit for foreign tax paid on income that is exempt from tax in Pakistan is Zero. No foreign tax credit allowed on exempt income.

I could not comprehend your second question. By s.181, every taxpayer is required to be registered. Who is taxpayer? section 2(66) will answer that

Where it is obvious that employer is not liable to file annual statement of deduction of income tax from salary, s.115 shall not be applicable.
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10-30-2011, 12:38 AM,
#3
 
wel thx for the reply.


" I could not comprehend your second question. By s.181, every taxpayer is required to be registered. Who is taxpayer? section 2(66) will answer that"

its confusing .SEC 2(66) says that
Every person required to file return is tax payer.
Plus the income exceeds the exempt limit SEE SEC (114) .

"what this means"?

thx
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