Amended income tax form issued

The Central Board of Revenue (CBR) has issued the amended income tax challan-cum-payment form, specifying head of payment and rate of tax under relevant sections of the Income Tax Ordinance, 2001. The board on Tuesday has replaced old challan form for all categories of taxpayers with immediate effect.
Official sources told Business Recorder that the amended challan form would facilitate the business community. The new challan form also carry the "Payment Section Codes (Direct Taxes)", which would be used for improving the revenue reporting mechanism.
As soon as the tax is paid at the bank using specific codes, it would automatically provide online information to the CBR under the relevant head for entering into the Information Management System (IMS).
The new form has specified the type of the tax payment. For example, tax at the rate of 8 percent would be applicable to non-resident persons operating ships under section 7 of the Income Tax Ordinance, 2001. The unique thing about the revised challan is that it specifies the type and rate of tax for all types of tax payments for convenience of the taxpayers.
Now, the challan has simplified tax payment procedure. The payment type list would also help the taxpayers in case he is forgetting any head to pay the due amount. If one is service-provider, he would know about the tax rate.
Sources said the board has prescribed all rates of tax on a single page of the challan. Obviously, the depositor must know about the type of payment and relevant provision of the Income Tax Ordinance, 2001 before depositing the due amount.
Moreover, different rates of tax payments were revised in the budget 2006-07, which required immediate specification on the new challan. Following are the types of payments along with the tax rate and description of the tax as specified on the revised challan:
Section 7 deals with the tax @ 8 percent on non-resident persons operating ships; section 7, tax @ 3 percent on non-resident persons operating aircrafts; section, 113 minimum tax @ 0.5 percent of the turnover; section 113A tax @ 0.75 percent of the turnover for retailers having turnover upto Rs 5 million; section 113B Tax @ 1 percent of the turnover for retailers having turnover exceeding Rs 5 million; section 137 tax due on the basis of return; section 137, tax due on the basis of an order; section 147 Advance Tax; section 148 import of goods @ 6 percent; section 148 import of capital goods @ 1 percent (Clause 13G, 2nd Schedule); section 148 import of scrap/stationery items @ 2 percent (Clause 13H, 2nd Schedule); section 148 import of edible oil @ 3 percent (Clasue 13, 2nd Schedule); section 149, salary - federal; section 149, salary - government employees (Other than federal); section 149, salary -others; section 150 dividend paid to public companies, insurance companies and resident companies @ 5 percent; section 150, dividend paid to non-resident companies @ 10 percent; section 150, dividend paid to others @ 10 percent; section 150, dividend at reduced rate @ 7.5 percent; section 151(1)(a) profit on debt paid or credited to a resident person on schemes of national savings and PO Saving Accounts; section 151(1)(b), profit on debt paid or credited to a resident person on account of deposit with a banking company or financial institution; section 151,(1)(c) profit on debt paid or credited to a resident person on securities of federal or provincial government or a local authority; section 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 Companies Ordinance, 1984, or a finance society; section 152(1), payment to non-resident person on account of royalty or fee for technical services; section 152(1A)(a) 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; section 152(1A)(b), payment to a non-resident on account of any other contract for construction or services rendered relating thereto; section 152(1A)(c), payment to a non-resident person on account of contract for advertisement services rendered by TV Satellite Channels; section 152(2) payment to a non-resident person or any other account including profit on debt but excluding those covered u/s 152(3); section 153(1)(a), payment to a resident person or a PE of a non-resident on account of sale of goods @ 1.5 percent; section 153(1)(a) payment to a resident person or a PE of a non-resident on account of sale of goods @ 3.5 percent; section 153(1)(b), payment to a resident person or a PE of a non-resident on account of services rendered or provided; section 153(1)(c), payment 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; section 153(1A) Payment to a resident person or a PE of a non-resident on account of rendering of or providing of services of stitching, dyeing, printing, embroidery, washing, sizing and weaving; 154(1) realisation of proceeds of exports of goods @ 0.75 percent, as prescribed in Division (IV) of part III of the First Schedule 12 154(1) Realisation of proceeds of exports of goods @ 1 percent, as prescribed in Division (IV) of part III of the First Schedule; section 154(1) realisation of proceeds of exports of goods @ 1.25 percent, as prescribed in Division (IV) of part III of the First Schedule; section 154(1) Realisation of proceeds of exports of goods @ 1.5 percent, as prescribed in Division (IV) of part III of the First Schedule; section 154(2) realisation of indenting commission in foreign exchange on imports @ 5 percent; section 154(2), realisation of indenting commission in foreign exchange on exports @ applicable to exports; section 154(3) realisation of proceeds of sale of goods to an exporter under an inland back-to-back letter of credit etc; section 154(3A) export of goods by an industrial undertaking located in an export processing zone; section 154(3B), payment against sale of goods by an indirect exporter to a direct exporter or an export house registered under DTRE Rules, 2001; section 155, payment of rent of immovable property; section 156, payment of prize on prize bond @ 10 percent; section 156, payment of winnings from a raffle, lottery, cross-word puzzle or quiz; and prize offered by companies for promotion of sale @ 20 percent; section 156A payment of commission on petroleum products of petrol pump operators @ 10 percent; section 156B, withdrawal from pension fund as per section 12(6); section 231A sash withdrawal from banks @ 0.2 percent; section 233, payment of brokerage or commission @ 10 percent; section 233 payment of commission (advertising agents) @ 5 percent; section 233A(1) on value of shares purchased or sold by a member of a stock exchange in lieu of its commission income @ 0.01 percent; section 233A(1) on value of shares traded by a person through a member of a stock exchange @ 0.01 percent; section 233A(1) On financing of CFS (badla) in shares business @ 10 percent 42 234 Alongwith motor vehicle tax - Goods Transport Vehicles as per Division III Part-IV of First Schedule; section 234 alongwith motor vehicle tax - Passenger Transport Vehicles as per Division III Part-IV of First Schedule; section 234 Alongwith motor vehicle tax - other private vehicles as per Division III Part-IV of First Schedule; section 235, Alongwith electricity consumption bills; section 236 telephone subscribers (other than mobile phone subscribers); section 236, mobile phone subscribers including pre-paid card users; WWF @ 2 percent of total income as defined in WWF Ordinance; WPPF-Unutilised sum from companies contribution to WPPF @ 5 percent of accounting profit; misc. appeal fee/copy fee/ etc; WT Wealth Tax; CVT on immovable property - other than commercial property and residential flats; CVT on commercial immovable property; CVT on residential flats; CVT on motor vehicles and CVT applicable on purchase of shares, modaraba certificates.