Tax Deduction at source

[imrank]

Kamran,

You have been very helpful, thanks.

Another one for you or anyone else. What if I am an AOP supplying goods locally, thus all my income is taxed @ 3.5% FTR. If I am registered for Sales Tax, my client will withhold 3.5% of the total invoice value, thus making the effective rate of tax more than 3.5%. If my client does not withhold any tax, then, as you advised, I will have to pay 3.5% tax on any untaxed element, correct? Would the untaxed element include sales tax or it would be without sales tax?

Look forward to hear back soon.

Thanks a lot,

Imra