Payments for goods and services Section 153
The Finance Act has approved that the Toll manufacturer liable for deduction on payments of sale of goods under section 153 (1) (a) of the Income tax Ordinance, 2001.
Minimum tax classification in respect of payment to a sportsperson and electronic and print media for advertising services has been eliminated.
Through Finance Act, following proviso are included regarding Commissioner allowing a payment without deduction of tax or deduction at reduced rate of tax:
“Provided that the Commissioner shall issue certificate for payment under clause (a) of sub-section (1) without deduction of tax within fifteen days of filing of application to a public company listed on a registered stock exchange in Pakistan if advance tax liability has been discharged:
Provided further that the Commissioner shall be deemed to have issued the exemption certificate upon the expiry of fifteen days to the aforesaid public listed company and the certificate shall be automatically processed and issued by IRIS:
Provided also that the Commissioner may modify or cancel the certificate issued automatically by IRIS on the basis of reasons to be recorded in writing after providing an opportunity of being heard.
Threshold for becoming withholding agent under section 153
The Finance Act has approved certain amendments in the definition of “Prescribed person” Turnover limit for an individual/association of persons has been increased from fifty million rupees to one hundred million rupees and Turnover limit of one hundred million rupees or more in any of the preceding tax years for a person registered under the Sales Tax Act, 1990.
