08012013-withholdingtaxes-ratescard

8/12/2019 08012013-withholdingtaxes-ratescard

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1

Withholding Tax Regime(Rates Card)

Guidelines for the Taxpayers, Tax Collectors & Withholding Agents

Section Provision of the Section Tax Rate Who willdeduct / collect

/ agent

From whom When Time of depositin Govt Treasury

148 Imports Imports(not otherwise

specified)

Import by an industrialundertaking for its own use

Import of edible Oil andpacking material

Import of all fiber, yarns and

fabrics and goods covered by

the Zero Rating regime of

Sales Tax-{C},(9),Part-II.

Second Schedule

Import of potassic

fertilizer{C},(13E),Part-II of

Second Schedule

Items mentioned in

Cl,(13G),Part ll of Second

Schedule

Imports of Urea fertilizer

{CL,(23),Part ll of Second

Schedule

5% of the

import value

3%

4%

1%

1%

1%

1%

Collector of Customs Importer of goods At the same time

and manner as

the custom duty

is payable in

respect of thegoods imported

On the day

collected Rule

43(a)


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2

Import of pulses{Cl.(24),Part-

II of Second Schedule}

Old and used automotive

vehicles

2%

Rates

specified in

Cl(4)Part III

of 2nd

Schedule

149 Salary Salary Income Different as

per Division

l of Part I of

1stSchedule

to the

Income Tax

Ordinance

Employer Employee At the time the

salaryis actually

paid

On the day

deducted by the

Government

Rule 43(a)

within 15days of

deduction

150

Dividend Dividend Income

The following concession are

to be noted;

On dividend

declared/distributed by

purchaser of power project

privatized by Wapada-CI,(17),PART ll,2

ndSch

On dividend

Declared/distributed by a

company set up for power

generation. Cl,(20),Part ll,2nd

Sch.

10% of

gross

payment

7.5%

7.5%

Every Person

Recipients of dividend At the time the

dividendis

actually paid

Within 7days

from the end of

each fortnight


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3

151

Profit on

debt

151(1)(a) Yield or profit (profit on debt)

on account, deposit or acertificate under the National

saving schemes or Post office

savings account.

10% of the

gross yield

paid. Less

amount of

Zakat if paid

under Zakatand Usher

ordinance

1980(XVII

of 1980)

Every Person Making

Payment

Residentrecipient of

yield (Profi t on debt)

At the time the

yield (profit on

debt) is credited

to the account of

the recipient or is

actually paid,whichever is

earlier.

On the day

deducted Rule

439a)

151(1)(b) Profit on debt paid by

Banking company or financial

institution on account or

deposit maintained.

10% of the

profit paid.

Less amount

of Zakat if

paid under

Zakat andUsher

ordinance

1980(XVII

of 1980

Banking Company or

Financial Institution


Profi t on debton an

account or deposit

At the time the

profit on debt is

credited to the

account of the

recipient or is

actually paid,

whichever isearlier.

Within 7days

from the end of

each fortnight

Rule 43(a)

151(1)( c) Profit on securities , other

than those mentioned in s.

151(1)(a), issued by federal /

provincial government or a

local government

10% of the

profit paid.

Less amount

of Zakat if

paid under

Zakat and

Usher

ordinance1980(XVII

of 1980)

Federal / Provincial

Govt/ Local authorityResident recipient ofprofit on any security(profit on debt)

At the time theprofi t on debtis

credited to the

account of the

recipient or is

actually paid,

whichever is

earlier.

On the day

deducted where

deducted by and

on behalf of the

government Rule

43(b)

151(1)(d) Profit on bonds , certificates,

debentures, securities or

instruments of any kind (other

than loan agreements between

borrowers and banking

companies or development

10% of the

profit paid.

Less amount

of Zakat if

paid under

Banking company, a

financial institution, a

company or finance

society


Profit on debt

At the time the

profi t on debtis

credited to the

account of the

recipient or is

actually paid,

whichever is

Within 7days

from the end of

each fortnight

Rule 43(a)


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financial institutions) [for

exemption see clause

(59)(i)(ii), Part IV, 2nd

schedule

Zakat and

Usher

ordinance

1980(XVII

of 1980)

earlier.

151(2) In case of non-resident

recipients

In case of non-resident having

no permanent establishment

(PE) in Pakistan

20% of the

profit or

reduced rate,

if any under

Double

Taxation

Agreement

(DTA)

10% of

grossamount paid

[clause (5A)

Part-II 2nd

schedule]

Every person

152

Payments to

non-resident

152(1)

Royalties or fee for technicalservices to non-residents

other than their PEs in

Pakistan

15% of thegross

amount or

reduced rate

under DTA

Every person Non Resident person At the time theroyaltyor fee for

technical services

is actually paid

On the day

deducted where

deducted by and

on behalf of the

government rule

43(a)Within 7days

from the end of

each fortnight

152(1A) A non-resident person on the

execution of;

a) Contract or sub-contract 6%

Non-Resident Person At the time the

amount is

actually paid

On the day

deducted where

deducted by and

on behalf of thegovernment rule

43(a)


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under a construction,

assembly or installation

project in Pakistan

including a contract for

the supply of supervisory

activities relating to suchproject.

b) Any other contract for

construction or services

rendered relating there to.

c)Contract for

advertisement services

rendered by TV SatelliteChannels. No deduction in

respect of payments to

foreign news agencies

syndicate services and

non-resident contributors

who have no PE in

Pakistan[clause (41B)Part-

IV]

6%

6%

Within 7days

from the end of

each fortnight

152(1AA) Any payment of insurance

premium or re-insurance to a

non-resident person

5% of gross

amount

Every Person Non-Resident Person At the time the

amount is

actually paid

On the day

deducted where

deducted by andon behalf of the

government rule

43(a)

Within 7days

from the end of

each fortnight

152(1AAA) Payment to non-resident

media person relaying from

outside Pakistan, for

advertisement services

10% Every Person On the day

deducted where

deducted by and

on behalf of the


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provided. government rule

43(a)

Within 7days

from the end of

each fortnight

152(2) Payment for profit on debt toa non-resident having no

permanent establishment in

Pakistan

Any other payment to non

resident, not other wise

specified and excluding the

following

(a)on account of salary,dividend, contractual

payments u/s

153,rent,winnings& prizes

and commission/ brokerage

(b)taxable in the hands of a

PE in Pakistan of the non-

resident person

(c)payable by a person who is

liable to pay tax as

representative of the non-

residents or

(d) not chargeable to tax in

the hands of the non-resident.

10% ofgross

amount paid

[clause (5A)

Part-II 2nd

schedule.

20% of the

gross

amount or

reduced rate

under DTAif applicable.

Every Person Non-resident Person At the time theamount isactually paid

On the daydeducted where

deducted by and

on behalf of the

government rule

43(a)

Within 7days

from the end of

each fortnight


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152(2A) Every Prescribed person

making payment to a

Permanent Establishment of

Non- Resident. For:

(i)Sale of goods

(ii) Rendering /providing of

services.

(iii) Execution of a contract

other than a contract for sale

of goods or providing/

rendering of services.

3.5%

(i) 2% in

the case of

Transport

service.

(ii) other

cases 6%

6%

Every Prescribed

person

153

Payment for

goods &

services

153(1)(a)

Payment in full or in part

including by way of advance

to a resident person :

For sale of rice, cotton, seed,

edible oil

Rice sold by rice exporters

association of Pakistan to

utility store corporation

1.5% of the

gross

payment

[exemption /

reduced

rates are

provided in

SRO 600(1)

/1991 dated

2-7-1991 &

SRO

586(1)/1991

dated 30-6-

1991

1% of sale

value[clause

(13HH) part

Federal Govt /

Provincial Govt

Company

AOP Constituted Or

Formed Under The Law

Non ProfitOrganization

Foreign Contractor Or

Consultant

Consortium Or Joint

Venture

Individual And AOP

Having Turnover Of

50(M) or above

[Note: Manufacture

Resident Person; andPermanentEstablishment inPakistan of a Non-Resident

Resident Person; andPermanentEstablishment inPakistan of a Non-Resident

At the time the

amount is

actually paid

At the time the

amount is

actually paid

On the day

deducted where

deducted by and

on behalf of the

government rule

43(a)

Within 7days

from the end of

each fortnight


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For sale of any other goods

II 2nd

schedule

3.5% of thegross

payment

Cum Exporters Are

Exempt On Fulfillment

Of Condition

Mentioned In Clause

(45) Part-IV 2nd

Schedule

153(1)(b) Transport services

All others

2%

6%

153(1)(c) On execution of the contract

other than for supply of goods

for the rendering of or

providing services.

6% of gross

payment

153(2) Every Exporter or Export

House deduct Tax on

payments in respect of

services of stitching, dying,

printing etc.

received/provided.

0.5% Exporter/Export

House

Any service provider At the time of

making the

payment.

On the day

deducted where

deducted by and

on behalf of the

government rule

43(a)

Within 7days

from the end of

each fortnight

153A

Payment to

Traders

and

Distributor

s.

Suspended till 30-06-2013

vide SRP NO.1487 (1)/2012

dated 24-12-2012.

Every manufacturer to collect

tax from distributors,

wholesalers and dealers.

0.5% of the

gross

amount

Every manufacture Distributors, Dealers &

Wholesalers

At the time the

amount is

actually paid

On the day

deducted where

deducted by and

on behalf of the

government rule

43(a)

Within 7days

from the end of

each fortnight


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154

Export and

foreign

indenting

commission

154(1) On realization of proceeds on

account of export of goods

[ exemption to cooking oil or

vegetable ghee exported to

Afghanistan if tax u/s 148 is

paid]

1% Authorizeddealer/Banking

Company

Exporter of goods;and

Indenting commissionagent

At the time ofrealization of

the exportproceeds orindentingcommission

Within 7 days

from end of each

fortnight


account of commission to;

I. Non-export indenting agent

II. Export indenting agent /

export buying house 5%

5%

Authorized

dealer/Banking

Company

Within 7 days

from end of each

fortnight


account of sale of goods to an

exporter under inland back to

back LC or any other

arrangement as may be

prescribed by FBR

1% Authorized

dealer/Banking

Company

EveryPerson At the time of

realization of the

sales proceeds or

realizing the

payment made

through crossed

cheque

Within 7 days

from end of each

fortnight

154(3A) Exports of goods located EPZ 1% EPZ Authority Industrial undertaking

located in the areas

declared by the Federal

Government to be aZone within the meaning

of the Export Processing

Zone Authority

Ordinance, 1980.

Within 7 days

from end of each

fortnight

154(3B) Payment to indirect exporters

as defined in DTRE rules,

2001

1% Direct exporters /

export house

registered under

DTRE rules, 2001.

Indirect exporters

(defined under sub-

chapter 7 of the chapter

XII of the Custom

Rules , 2001)

At the time ofpaymentagainst a firmcontract

Within 7 days

from end of each

fortnight

154(3C) Clearance of goods exported 1% Collector of custom Exporter of goods At the time of Within 7 days


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10

export of goods from end of each

fortnight

155

Income

from

Property

Any payment in full or in part

including by way of advance

on account of rent of

immovable property includingrent of furniture and fixtures

and services relating to such

property and amounts

mentioned in section 16(1)or

(3):

(A) In case of individual

or AOP

i) Amount not

exceeding

150,000

ii) 150,000 to 400,000

iii) 400,000 to

1,000,000

iv) Exceeding 1,000,000

B) in case of company

i) amount not exceeding

400,000

ii) 400,000 to 1,000,000

NIL

5% of

amountexceeding

150,000

12,500+7.5

% of amount

exceeding

400,000

57,500+10%

of amount

exceeding

1,000,000

5%

20,000+7.5

% of

Amount

exceeding

Federal

Govt/Provincial

Govt, Company;

local authority, non-profit, organization,

diplomatic mission of

a foreign state and

any other person

notified by FBR

Recipient of rentof

immovable property

At the time the

rentis actually

paid

On the day

deducted where

deducted by and


43(a)

Within 7days

from the end of

each fortnight


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11

iii) exceeding 1,000,000

400,000

65,000

+10% of

amountexceeding

1,000,000

156

Prizes and

winnings

Payment of prize on prize or

cross word puzzle

Payment on a winning from a

raffle, lottery, prize on

winning a quiz, prize, offered

by companies for promotion

of sale crossword puzzles

(where such amount in not

paid in cash then tax is to be

collected from the recipient

on fair market values of the

prize)

10%

20%

Every person Recipient of prize or

winnings

At the time the

prize or winnings

are actually paid

On the day

deducted where

deducted by and

on behalf of the

government rule

43(a)

Within 7days

from the end of

each fortnight

156 A

Petroleum

Products

Payment to petrol pump

operator on account of sale of

petroleum products

10% of

amount of

commission

Every person Petrol pump operators At the time the

commission is

actually paid

On the day

deducted where

deducted by and

on behalf of the

government rule

43(a)

Within 7days

from the end of

each fortnight

156B

Withdrawal

of balance

under

pension

fund

i) Withdrawal before

retirement age

ii) Withdrawal if in excessof 25% of accumulated

balance at or after the

retirement age

As specified

in sub

section (6)

of section 12

i.e average

rate of tax

for the last 3

preceding

Pension fund

manager

Individuals maintaining

pension accounts with

an approved pension

fund

At the time of

withdrawal

Within 7days

from the end of

each fortnight


12/18

12

years or rate

applicable

for the year

whichever is

lower.

231ACash

Withdrawal

from a Bank

Payment of cash withdrawalexceeding Rs, 50,000/- in a

day

0.2% of theamount

exceeding

Rs, 50,000/-

Every BankingCompany

Persons withdrawingcash, other than thefollowing:

a. FederalGovernment;

b. ProvincialGovernment;

c. Foreign diplomat;d. Diplomatic

mission inPakistan; or

e.Personwhoproduces acertificate from the

Commissioner thathis income duringthe tax year isexempt

At the time thecash iswithdrawn

Within 7daysfrom the end of

each fortnight

231AA

Advance tax

on

transaction

in bank

1. Sale against cash of

any instrument including

demand draft, payment

order, CDR, STDR, RTC, or

any other instrument of

bearer nature or o receipt

of cash on cancellation of

any of these instruments

(except in case of inter-

bank or intra-bank

transfer and also where

payment is made through

a crossed cheque for

purchase of these financial

instruments).

2. Transfer of any sum

against cash through

0.3% of the

amount

exceeding

Rs, 25,000/-

in a day

Every banking

company non

banking financial

institution , exchange

company or any

authorized dealer of

foreign exchange

.

Persons (excluding *)

to whom sale of any

instrument is made

against cash payment

Including Demand

Draft, Pay Order, Call

Deposit Receipt (CDR),

Short Term DepositReceipt

(STDR),Security

DepositReceipt (SDR),

Rupee Travelers

Cheque (RTC) or any

other instrument of

bearer nature; and

Excluding Inter-

bank or intra-bank

At the time ofsale ofinstrument ortransfer

Within 7days

from the end of

each fortnight


13/18

13

online transfer,

telegraphic transfer mail

transfer or any other

mode of electronic

transfer except online

transmission of day to daycollection to centralized

account of a distributor

where the depositor and

the beneficiary is the same

maintained under cash

management

arrangements provided by

a bank shall be treated as

inter bank transfer

3. The entire section

does not apply to federal

government , provincial

government and

diplomatic mission or in

the case of person who

produces certificates of

exemption from the

commissioner

0.3% of the

amountexceeding

Rs, 25,000/-

in a day

transfer

231B

Purchase of

Motor car

Up to 850cc

851cc to 1000cc

1301cc to 1600cc1601cc to 1800cc

1801cc to 2000cc

Above 2000cc

Rs7,500

Rs, 10500

Rs, 16875Rs, 22500

Rs, 25000

Rs, 50,000

Motor vehicle

registration authorityPersons registeringnew locally

manufactured motorvehicle, other than thefollowing:a. Federal Governmentb. Provincial

Governmentc. Local Governmentd. Foreign Mission in

Pakistan

At the time ofregistration of

new motorvehicle

On the day

deducted where


government Rule

43(a)

233 Brokerage and 10% of the Federal Government, Recipient of brokerageor commission

At the time the

brokerage orOn the day


14/18

14

Brokerage

&

Commission

commission income

(including non-resident

agents)

amount of

payment

5% in case

of

advertising

agents

Provincial

Government, Local

authority, Company

AOP constituted by

or under any law.

commission is

actually paid;deducted where

deducted by and

on behalf of the

government rule

43(a)

Within 7daysfrom the end of

each fortnight

233A

Collection

of tax by

stock

exchange

233(1)(a)

(1)(b)

On purchase of shares in lieu of

the commission earned by its

Member

On sale of shares in lieu of the

commission earned by its

Member

0.01% of

Purchase

value

0.01% of

sale value

Stock Exchange

Registered in Pakistan

Members of stockexchange

At the time of

making or

receiving

payment

Within 7days

from the end of

each fortnight

233AA Advance Tax on margin

financing through Stock

Exchanges registered in

Pakistan.

10% of

carryover

charge

NCCPL Within 7days

from the end of

each fortnight

234

Tax on

MotorVehicle

From plying or hiring of

goods transport;

Reduced rate for goodtransport vehicle with laden

weight of 8120 Kg or more

after a period ten years from

the date of first registration

of the vehicle in Pakistan [

Para (1A) or Div III part IV of

1st

schedule]

Passenger transport

Rs. 5 per kg

of the laden

weightRs, 1200 per

annum

Rs, 25 to Rs,

500 per seat

per annum

Rs 750 to

8000 per

Person collecting

motor vehicle tax

Owner of motor vehicle

excluding:At the time of

collecting motor

vehicle taxinstallment

On the day

collected


15/18

15

annum

[paragraph

(1), Div, III

part IV of

First SCH]

234ACNG

Station

On the amount of gas billof a Compressed Natural

Gas

4% Person preparing gasconsumption bill Consumer of gas forcompressed naturalgas station

At the time ofrealization of gas

consumption

charges

On the daycollected

235

ElectricityCommercial and industrial

consumer

Note:

Tax collected up to bill

amount of Rs, 30,000 shall

be minimum tax or a income

of a person (other than a

company). There shall be norefund of tax collected

under this section unless the

tax so collected is excess of

the amount for which the

tax payer is chargeable to

tax under this ordinance in

the case of a company

No tax collection from

exporters cum

manufacturers of items

mentioned in clause (66Part-IV of 2nd

schedule

As given in

Par-IV Div

of First Sch

(Ranging

from Rs, 80

to Rs, 1500

depending

on the

monthly

bill) for bill

exceeding

Rs, 20,000

5%

Person preparing

electricity bill

Commercial and Industrial

consumers of electricity

excluding a consumer whoproduces a certificate from

the Commissioner that his

income is exempt from taxduring a tax year

Along withpayment ofelectricityconsumptioncharges

On the day

deducted where

deducted by and

on behalf of the

government rule

43(a)

Within 7days

from the end of

each fortnight

236

TelephoneTelephone subscribers Up to

monthly

1,000 Nil,

Bill

exceeding

1,000

10%

10% of the

Person preparing

telephone bill /

issuing or selling

prepared card for

mobile phones

Telephone subscriberand purchaser ofprepaid telephonecards excluding thefollowing:a.Federal

Government;b.Provincial Govtc.Local Government;d.Foreign diplomat;

Along with

payment of

telephone bill or

at the time of

issuance of or

sales of prepared

cards

On the day

deducted where

deducted by and

on behalf of the

government rule

43(a)

Within 7days

from the end of

each fortnight


16/18

16

Mobile telephone

subscriber and prepaid

telephone cards

amount of

Bill

e.Diplomatic mission inPakistan; or

Personwho produces acertificate of exemption .

236A Sale by auction 5% Every person Purchaser of anyproperty (including the

awarding of any leaseto any person, includinga lease of the right tocollect tolls, fees orother levies, bywhatever name called)or goods confiscated orattached eitherbelonging to or notbelonging to theGovernment, localGovernment, anyauthority, a company, aforeign associationdeclared to be acompany under sub-clause (vi) of clause (b)of sub-section (2) ofsection 80, or a foreigncontractor or aconsultant or aconsortium or Collectorof Customs orCommissioner ofIncome Tax or anyother authority

At the time of

realization of sale

proceeds

On the day

deducted where


government rule

43(a)

Within 7days

from the end of

each fortnight

236BAdvance tax

on purchase

of AirTicket

Purchase of domestic air

ticket

5% of grossamount of

ticket

Person preparing airticket

Purchaser of domesticair travel ticket

excluding the following

a. Federal Govtb.Provincial Govtc.Person who produce

a certificate from the

commissioner IR

that income of such

person during the

At the time ofrealization ofsale proceeds

On the daydeducted where

deducted by and


43(a)

Within 7days

from the end of

each fortnight


17/18

17

year is exempt

236CImmovea

bleproperty

Transfer or attesting

transfer of Immoveable

property.

0.5% Every personRegistering or

attesting Transfer.

From seller of

immoveable property

At the time of

Registering or

attesting the

transfer

On the day

deducted where

deducted by and

on behalf of the

government rule

43(a)

Within 7days

from the end of

each fortnight

In case of non-compliance Penalties and other consequences

Section provision Penalty/ default surcharge.

182 S.No.15 Offences

and Penalties.

Any person who fails to collect or deduct tax or fails to deposit

the tax collected or deducted within the time allowed for thispurpose.

The person is liable to a penalty of Rs.

25,000 or 10% of the amount of taxinvolved, whichever is higher.

191(1) (c) prosecution. Any person who, without reasonable excuse:

Fails to comply with the obligation to

collect or deduct tax;

Having collected or deducted fails to

pay the tax.

The person is treated as having committed

an offence punishable on conviction with a

fine or imprisonment for a term not

exceeding one year, or both

205 (3) Default

Surcharge

Any person who fails to collect or deduct tax or fails to depositthe tax collected or deducted (as required under Div .II &III of

Part V, Chapt. X and XII read with section 160) within the time

allowed for this purpose.

Default surcharge is paid in addition to the principal amount of

the tax to be collected or deducted at source by the

withholding agent.

The person/defaulter is liable to pay default

surcharge at the rate of 15% per annum, on

the defaulted amount, computed from the

first day of default till the date it is paid.


18/18

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