WHT on services and supplies

[Smahnz]

whether it is necessary for every company to deduct withholding tax on supplies and services? what is rate for both?

[nomanejaz2009]

ya it is necessary, rate are same, supplies 3.5% if exceeds 25000 per year, service is 6% on 10,0000

[Smahnz]

so that means i m going to outsource the development of my website...so i must deduct 3.5% on the final payment? can you please guide me journal entry treatment in books of a/c

[Anfal Shabbir]

if u r 100 % exporter then u r exempt from withholding tax u/s 153

Anfal

[Smahnz]

no nature of our firm is advertising/web-delopment & PR....what will be position in this case?

[Information Consultant]

ur company fall under the defination of withhloding agent so u must deduct tax on ur payments.

Web development per ap 6 % tax deduct karain gay .

entry

Web development expense debit
Incometax payable credit
Bank credit