Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Percentage of witholding tax on supply of goods
04-16-2010, 06:30 PM,
#1
Percentage of witholding tax on supply of goods
Salam
I would like to know that if i have registered a new sole proprietor trading firm, then what is the percentage of witholding tax will apply on supply of goods to a company. further that is there any possible way that it can be exempted?

because WHT is on the gross amount of invoice and if my Margin is low then the total WHT deducted will be greater than my profit..

Reply
04-20-2010, 12:04 AM,
#2
 
If your taxable income is below taxable threshold then you can apply to Commission for an exemption certificate, if you get that and present it to your customer (company in this case) then it won't deduct tax.
Reply
04-20-2010, 02:42 PM,
#3
 
Shakeel
In my opinion Nauman is right if your gross margin (Margin) on supplies is lesser than the WHT,which is 3.5%,then you may apply for exemption certificate. The format of exemption certificate is available in Income Tax Rules,2002. Just fill it and deposit with concerned CIT.
Reply
04-20-2010, 07:58 PM,
#4
 
Hi ,
Awais bhai jo baat aab nay kahi hay is ka koi refferance dayn ITO ya rule may ya koi SRO, plz
Reply
04-20-2010, 08:02 PM,
#5
 
My above post was based on the practical experience. However I will try to provide you the reference.
Reply
04-21-2010, 05:40 PM,
#6
 
I agree with Awais, I have been to clients who are going in loss and they have applied for exemption certificate and have been successful in getting that.
Reply
04-21-2010, 08:05 PM,
#7
 
bhai jaan,,, may bhi to yehi jana chata hon k aakhir kaysy,,,, kahin to kisi kanoon may likha ho ga na,,,, mujhay refferance to dayn, taky mujhay bhi to pata chaly k kaysy milta hay is sorat may exemption certificate.
Suni sunai baat par kaysy yakeen kar lon.
Reply
04-22-2010, 05:09 PM,
#8
 
Dear Lap Top read section 159 of Income Tax Ordinance with Rule 40 of Income Tax Rules,2002 and also see the application form for grant of exemption certificate provided in income tax rules in Part VII of First Shedule of Income Tax Rules,2002. You will find in the form mentioned that exemption may also be claimed on any proper reason. If the CIT is satisfied then the exemption may be granted by him. Read application form for exemption certificate (Which is also a part of IT Rules) carefully you will find your desired information.
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)

Contact Us | Accountancy | Return to Top | | Lite (Archive) Mode | RSS Syndication