Question: If a small importer , his distributor & retailer dealing in Paper and their turnover is less then 5 million.1) Is their any exemption available on Sales. 2) What would be sales tax implication if the turnover exceeds Rs 5 Million.
Answer: No such exemption is available. The minimum exemption threshold of Rs. 5 million has been increased to Rs. 10 million, which is only for the cottage industry (manufacturer).
Question: Private Limited company is purchasing 2nd hand car from individual. Would the WHT applied on this purchase if yes then at what rate.
Answer: Under section 153(1)(b) @ 4.5% or 6.5% (filer or non‐filer) as the case may be.
Question: Please guide whether the withholding u/s 153 be applicable on gross amount of invoice or on amount excluding GST. Suppose amount excluding GST is 100 GST amount 17 Total amount 117 Tax will be applicable on 117 or on 100?
Answer: Withholding tax is applicable on the gross amount payable (including sales tax). [Reference: Section 153(1) of Income Tax Ordinance, 2001].
Question: Kindly let me know the capital gain tax rate on sales of share of a pvt Ltd company
Answer: Sales of share of a private limited company fall under the head capital gain and is taxable u/s 37 of the Income Tax ordinance, 2001. If shares are retain for more than one year then 75% of the gain shall be taxed under the normal tax regime
Question: Please advise us the procedure of withholding sales tax on services provided from a non-residence person A vendor registered in PRA has provided us services and raised a sales tax invoice. on second posture, we are not registered in such province (PRA). so what treatment we would do? for withholding of sales tax with such type of vendors. should we withheld 20% on those invoices, or not. if yes, than please share the clause. or advise further.
Answer: If services are provided in Punjab and you have office in Punjab, you should withhold whole amount of Sales Tax as mention in invoice and deposit to PRA. If services are provided in Sindh, the service provider is required to issue Sindh Sales Tax invoice and you should withhold 20% of Sindh Sales Tax.