S. Tax (Withholding)

Question 1

Sales Tax Withholding Agents

Answer 1

GOVERNMENT (Fed, Prov, Autonomous bodies e.g NEPRA NAB PCP, public sector org)

COMPANIES

AOP - Exporter only (not zero arted)

Individual - Exporter only (not zero arted)

Question 2

SALES TAX WITHHELD treatment (add/deduct)

Answer 2

Exam Q

Deduct -from Liability if our deducted (Exam Q mentions withholding BUYER details e.g Co, exporter, etc etc)

Add -to (bottom) Liability based upon Exam Q details supply made to e.g Co, exporter, etc etc)

Question 3

ST Withholding Rates

Answer 3

• What does unregistered means……..LIABLE to be regsitered (therefore cottage industry does not fall in category)
• Supply to Unregistered??
• Supply to Registered Wholesaler, dealer
• Supply to Registered Importer
• Supply to Registered Man.

Question 5

Withholding Tax % to be applied to which amount??

Registered person?

Unregistered Person?

Answer 5

Unregistered Person ———- Value of taxable SUPPLY

Registered Person—–Amount of Sales Tax

Question 6

When to Deposit ST Withheld

Answer 6

Alongwith the return of ST of the period inwhich the purchase has been made

IRRESPECTIVE whether PAYMENT MADE or NOT

Question 7

100% W/H ST Deduction

Answer 7

• Advertisement Services
• from Service Provider in Pakistan or Abroad

Question 8

Exceptions to WH ST deductions

Answer 8

Active Tax Payer (except advertisement services) supplier to registered person

3rd Schedule

Commercial import supplies (where comm. importer have paid Value added tax)

Utilities (Elect, gas)

Telecom services

Specific supplies (pertroleum prod, vegetable ghee, cooking oil

Sand/Crush etc to Naya Pakistan