Collection or Deduction of Tax at Source

Government of Pakistan Revenue Division Central Board of Revenue *** Islamabad, the 27th June, 2005. N o t i f i c a t i o n (Income Tax) S. R. O. 641 (I)/2005.- In exercise of the powers conferred by sub-section (1) of section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Central Board of Revenue is pleased to direct that the following further amendments shall be made in the Income Tax Rules, 2002, the same having been previously published as required by sub-section (3) of the said section, namely: - In the aforesaid Rules, - (1) in Chapter IX, for Part II the following shall be substituted; namely:- “Part II Collection or Deduction of Tax at Source Division I Employer’s Certificate 41. Certificate of deduction of tax from salary .- (1) As required under sub-section (1) of section 164, any person responsible for deducting tax from salary under section 149 shall issue a certificate to the person from whom tax has been deducted, in the form as set out in Part III of the Second Schedule to these rules, within forty-five days after the end of the financial year. (2) Where the employment of an employee ceases for any reason before the end of the financial year, the certificate under sub-rule (1) shall be issued for the period of employment in that year within seven days of the ceasing of the employment or at the time of making payment of final settlement whichever is later. (3) Where the certificate issued under sub-rule (1) or (2) has been lost, stolen or destroyed the recipient of the certificate may request, in writing, to the issuer of the certificate to issue a duplicate thereof. (4) Where a request has been made under sub-rule (3), the issuer of the certificate shall comply with the request and the certificate so issued shall be clearly marked “duplicate”. (5) The certificate issued under sub-rules (1), (2) or sub-rule (3) shall be in duplicate and serially numbered. Division II Certificate for Collection or Deduction of Tax (other than from salary) 42. Certificate of collection or deduction of tax other than from salary .- (1) As required under sub-section (1) of section 164, any person responsible for- (a) collecting tax under Division II of Part V of Chapter X of the Ordinance; (b) deducting tax from a payment under Division III of Part V of Chapter X of the Ordinance, except in the case of salary; (c) collecting or deducting tax under Chapter XII of the Ordinance; or (d) deducting tax under the Sixth Schedule to the Ordinance, shall issue a certificate to the person from whom tax has been collected or deducted, in the form as set out in Part VII of the Second Schedule to these rules, within fifteen days after the end of the financial year or discontinuation of business etc. (2) Where the person from whom tax has been collected or deducted requests for the issuance of the certificate before the end of the financial year, the certificate under sub-rule (1) shall be issued for the period in that year within seven days of the request made. (3) Where the certificate issued under sub-rule (1) or sub-rule (2) has been lost, stolen or destroyed the recipient of the certificate may request, in writing, to the issuer of the certificate to issue a duplicate thereof. (4) Where a request has been made under sub-rule (3), the issuer of the certificate shall comply with the request and the certificate so issued shall be clearly marked “duplicate”. (5) The certificate issued under sub-rule (1), (2) or sub-rule (3) shall be in duplicate and serially numbered. Division III Payment of Tax Collected or Deducted 43. Payment of tax collected or deducted .- As required under section 160 and under the Sixth Schedule to the Ordinance, the tax collected or deducted under Division II or Division III of Part V of Chapter X of the Ordinance, Chapter XII of the Ordinance or Sixth Schedule to the Ordinance shall be paid to the Commissioner by way of credit to the Federal Government,- (a) where the tax has been collected or deducted by the Federal Government or a Provincial Government on the day the tax was collected or deducted; or (b) where the tax has been collected or deducted by a person other than the Federal Government or a Provincial Government, by remittance to the Government Treasury or deposit in an authorized branch of the State Bank of Pakistan or the National Bank of Pakistan, within seven days from the end of each fortnight. Division IV Annual and Quarterly Statements of Tax Collected or Deducted 44. Annual statement of tax collected or deducted .- (1) An annual statement required to be furnished under sub-section (1) of section 165 for a financial year shall be in the form as set out in Part VIII and Part IX of the Second Schedule to these rules. (2) Pursuant to sub-section (2) of section 165, a person responsible for collecting or deducting tax under Division II or Division III of Part V of Chapter X of the Ordinance or under Chapter XII of the Ordinance shall furnish a quarterly statement for each period of three months ending on the 30 th day of September, 31 st day of December, 31 st day of March and 30 th day of June, within fifteen days of the end of the said period in the form as set out in Part X of the Second Schedule to these rules. (3) The statement referred to in sub-rule (2) shall be accompanied by the evidence of deposit of tax collected or deducted to the credit of the Federal Government. (4) A person required to furnish the statements under sub-rule (1) or (2) shall, wherever required by the Commissioner, furnish a reconciliation of the amounts mentioned in the aforesaid annual and quarterly statements with the amounts mentioned in the return of income, statements, related annexes and other documents submitted from time to time. 45. Statement of tax deducted under the Sixth Schedule to the Ordinance .- The statement required to be furnished under sub-clause (b) of clause 11 of Part II of the Sixth Schedule to the Ordinance for a financial year shall be in the form as set out in Part XI of the Second Schedule to these rules .” (2) in Chapter IX, Part III shall be omitted; and (3) in the Second Schedule, after Part VI, the following new Parts shall be added, namely:- “PART VII Certificate of Collection or Deduction of Tax (See rule 42) S. No. Original/Duplicate. Date of issue. . Certified that a sum of Rupees____________________(Amount of tax collected/deducted in figures) Rupees________________________________________________ ___________________________________________(Amount in words) on account of Income Tax has been collected/deducted from _______________________________________________________ (Name and address of the person from whom tax collected/deducted) ____________________________________________________________________ In case of an individual, his/her name in full and In case of an association of persons / company, name and style of the association of persons/company having National Tax Number _________________ (if any) and holder of CNIC No. _________________ (in case of an individual only) on ____________________ (Date of collection/deduction) Or during the period From ______________To ______________(Period of collection/deduction) under section * _____________________ (Specify section of the Income Tax Ordinance, 2001) on account of * ____________________________________________ (Specify nature) vide __________________________________ (Particulars of LC, Contract etc.) on the value/amount of Rupees________________ (Gross amount on which tax collected/deducted in figures) Rupees ________________________________________________ ___________________________________________(Amount in words) This is to further certify that the tax collected/deducted has been deposited in the Federal Government Account as per the following details: Date of deposit. SBP / NBP/ Branch/City. Amount. Challan Treasury. (Rupees) /Treasury No. ____________ __________________ __________________ __________________ _________ ____________ __________________ __________________ __________________ _________ ____________ __________________ __________________ __________________ _________ ____________ __________________ __________________ __________________ _________ Company/office etc. collecting/deducting the tax: Name. ____________________________ Address. ___________________________ Signature. _____________________________ ___________________________ Name. _____________________________ NTN (if any) ___________________________ Designation. _____________________________ Date. ___________________________ Seal. _____________________________ *Section On account of 148 Import of goods 150 Dividend paid 151(1)(a) Profit on debt paid or credited to a resident person on schemes of National Savings 151(1(b) Profit on debt paid or credited to a resident person on an account or deposit with a banking company or a financial institution 151(1(c) Profit on debt paid or credited to a resident person on securities of Federal or Provincial Government or a local authority 151(1)(d) Profit on debt paid or credited to a resident person on any bond, certificate, debenture, security or any other instrument by a banking company, financial institution, company incorporated under the Companies Ordinance, 1984, a body corporate formed by or under any law in force in Pakistan or a finance society 152(1) Payment to a non-resident person on account of royalty or fee for technical services 152(2) Payment to a non-resident person on any other account including profit on debt but excluding those covered under section 153(3) 153(1)(a) Payments to a resident person or a PE of a non-resident on account of sale of goods 153(1)(b) Payments to a resident person or a PE of a non-resident on account of services rendered or provided 153(1)(c) Payments to a resident person or a PE of a non-resident on account of execution of a contract, other than contract for sale of goods or services rendered or provided 153(3)(c) Payment to a non-resident on account of a contract or sub-contract under a construction, assembly or installation project in Pakistan, including a contract for supply of supervisory activities in relation to such project 153(3)(d) Payment to a non-resident on account of any other contract for construction or services rendered *Section On account of 153(3)(e) Payments to a non-resident person on account of contract for advertisement services rendered by TV Satellite Channels 154(1) Realization of proceeds of exports of goods 154(2) Realization of foreign indenting commission 154(3) Realization of proceeds of sale of goods to an exporter under an inland back-to-back letter of credit etc 154(3A) Export of goods by an industrial undertaking located in an export processing zone 154(3B) Payment against sale of goods by an indirect exporter to a direct exporter or an export house registered under DTRE Rules, 2001 155 Payment of rent of immovable property 156 Payment of prize on a prize bond or winnings from a raffle, lottery, cross-word puzzle or quiz; and prize offered by companies for promotion of sale 156A Payment of commission on petroleum products of petrol pump operators 156B Withdrawal from pension fund 232 Cash withdrawal 233 Payment of brokerage or commission including indenting, advertising, yarn, insurance or travel agent 233A(1) On value of shared purchased or sold by a member of a stock exchange in lieu of its commission income 233A(1) On value of shares traded by a person (sold) through a member of a stock exchange 233A(1) On financing of carry over trade (Badla) in shares business 234 Alongwith motor vehicle tax of motor vehicles 235 Alongwith electricity consumption bills 236 Telephone users including mobile phones & pre- paid cards