10-01-2009, 07:01 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by faisal_desperado</i>
<br />Dear,
The said agency is obliged to deduct tax from your invoice, since the event has been taken place before the exemption could have been provided, Had the event been taken place after July 09 then no tax would have been withheld.
However, there is a great certainity that, after manipulation, the said agency would evade tax payment,since this has now been abolished and will be easy for him to deduct payment from your invoice by falsification but avoid paying the same to make its own black money.
To tackle the aforesaid problems, you are required to;
- Let him deduct tax by whatever percent and ask for the tax challan, that will be evidence for you that tax has been deposited by KIMCO.
- If KIMCO does not provide tax challan within 15 days of the payment(after he pays you) then ask for the amount deducted by him on the grounds that tax has not been deposited by them.
- Time and again ask for either tax challan or amount deducted on account of tax.
- If you have not filled your return of tax yet then claim the same in the tax return, i.e. a rebate in tax should be claimed.
- If you have filled tax return for the year then tax deducted by KIMCO will be carried forward as per the rules provided in the ordinance.
Queries will be appreciated , if asked
Best Regards,
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Faisal,
I think the time of deduction of tax is at the time of payment so if the at the time of payment the law has been changed then tax would not be dudected from the payamnets.
For your reference the section is reproduced
Every prescribed person making
a payment in full or part including a payment by way of advance to a resident
person or permanent establishment in Pakistan of a non-resident person -
(a) for the sale of goods;
(b) for the rendering of 1[or providing of] 2[ ] services;
(c) on the execution of a contract, other than a contract for the
3[sale] of goods or the rendering of 4[or providing of] 5[ ]
services,
shall, at the time of making the payment, deduct tax from the gross amount
payable at the rate specified in Division III of Part III of the First Schedule.
<br />Dear,
The said agency is obliged to deduct tax from your invoice, since the event has been taken place before the exemption could have been provided, Had the event been taken place after July 09 then no tax would have been withheld.
However, there is a great certainity that, after manipulation, the said agency would evade tax payment,since this has now been abolished and will be easy for him to deduct payment from your invoice by falsification but avoid paying the same to make its own black money.
To tackle the aforesaid problems, you are required to;
- Let him deduct tax by whatever percent and ask for the tax challan, that will be evidence for you that tax has been deposited by KIMCO.
- If KIMCO does not provide tax challan within 15 days of the payment(after he pays you) then ask for the amount deducted by him on the grounds that tax has not been deposited by them.
- Time and again ask for either tax challan or amount deducted on account of tax.
- If you have not filled your return of tax yet then claim the same in the tax return, i.e. a rebate in tax should be claimed.
- If you have filled tax return for the year then tax deducted by KIMCO will be carried forward as per the rules provided in the ordinance.
Queries will be appreciated , if asked
Best Regards,
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Faisal,
I think the time of deduction of tax is at the time of payment so if the at the time of payment the law has been changed then tax would not be dudected from the payamnets.
For your reference the section is reproduced
Every prescribed person making
a payment in full or part including a payment by way of advance to a resident
person or permanent establishment in Pakistan of a non-resident person -
(a) for the sale of goods;
(b) for the rendering of 1[or providing of] 2[ ] services;
(c) on the execution of a contract, other than a contract for the
3[sale] of goods or the rendering of 4[or providing of] 5[ ]
services,
shall, at the time of making the payment, deduct tax from the gross amount
payable at the rate specified in Division III of Part III of the First Schedule.
