Witholding tax on freight charges
Friday, February 13, 2009
According to section 153 (Payments for goods and services) of Income Tax Ordinance, 2001 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 is required to deduct tax
- for the sale of goods;
- for the rendering of services;
- on the execution of a contract, other than a contract for the supply of goods or the rendering services
Payment to transporters on account of freight charges are covered under rendering of services. Every prescribed person is required to deduct withholding tax @ 2.00% as mentioned in 2(i) division III, part III of first schedule of Income Tax Ordinance, 2001.
Labels: Taxation
posted @ 2:57 PM,
2 Comments:
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At February 13, 2009 at 3:50 PM,
said...
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Are accountants jumping on the blog bandwagon with the pundits and the journalists? Not in great numbers. But your blog seems to be very useful one. Keep it up man.
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At February 16, 2009 at 6:15 PM,
sammar said...
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what about Rate of Tax Deduction on Sea Freight paid to shipping company
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