AIRLINK 182.60 Increased By ▲ 2.50 (1.39%)
BOP 11.29 Decreased By ▼ -1.80 (-13.75%)
CNERGY 7.55 Increased By ▲ 0.07 (0.94%)
FCCL 46.15 Increased By ▲ 0.97 (2.15%)
FFL 16.34 Increased By ▲ 0.28 (1.74%)
FLYNG 27.47 Increased By ▲ 0.04 (0.15%)
HUBC 133.40 Increased By ▲ 0.16 (0.12%)
HUMNL 13.05 Increased By ▲ 0.03 (0.23%)
KEL 4.53 Increased By ▲ 0.08 (1.8%)
KOSM 6.13 Increased By ▲ 0.16 (2.68%)
MLCF 59.91 Increased By ▲ 1.10 (1.87%)
OGDC 220.20 Increased By ▲ 1.61 (0.74%)
PACE 5.90 Increased By ▲ 0.03 (0.51%)
PAEL 45.45 Increased By ▲ 2.83 (6.64%)
PIAHCLA 16.79 Increased By ▲ 0.29 (1.76%)
PIBTL 9.79 Decreased By ▼ -0.13 (-1.31%)
POWER 11.95 No Change ▼ 0.00 (0%)
PPL 184.00 Increased By ▲ 0.92 (0.5%)
PRL 36.70 Increased By ▲ 1.37 (3.88%)
PTC 24.80 Increased By ▲ 0.46 (1.89%)
SEARL 100.02 Increased By ▲ 4.20 (4.38%)
SILK 1.15 No Change ▼ 0.00 (0%)
SSGC 37.05 Decreased By ▼ -0.26 (-0.7%)
SYM 15.49 Decreased By ▼ -0.59 (-3.67%)
TELE 7.99 Increased By ▲ 0.11 (1.4%)
TPLP 10.85 Increased By ▲ 0.01 (0.09%)
TRG 60.89 Decreased By ▼ -0.05 (-0.08%)
WAVESAPP 10.84 Increased By ▲ 0.05 (0.46%)
WTL 1.33 No Change ▼ 0.00 (0%)
YOUW 3.80 Increased By ▲ 0.03 (0.8%)
BR100 12,373 Increased By 158.8 (1.3%)
BR30 37,827 Increased By 387.5 (1.03%)
KSE100 116,291 Increased By 755 (0.65%)
KSE30 35,938 Increased By 279.5 (0.78%)

ISLAMABAD: The new advance tax imposed on developers and builders would be paid on a project-to-project basis. The Federal Board and Revenue (FBR) has issued an Income Tax Circular to explain the payment of advance tax by builders and developers.

According to the budget explanatory circular, a new sub-section (5C) has been inserted in Section 147 through the Finance Act, 2023, whereby, builders and developers, instead of discharging advance tax liability on the basis of tax payable to turnover ratio, are now required to compute their advance tax liability on the basis of area and size of the building or land development project and the liability so computed will be paid in terms of other provisions of Section 147 of the ordinance.

New advance tax imposed on construction, residential businesses

The rates of tax for the purpose of sub-section (5C) of Section 147 have been provided in Part IIB of the First Schedule to the Ordinance.

The advance tax will be computed by builders and developers on the basis of rates provided in the aforementioned division which will be paid in four equal quarterly installments and shall be paid in terms of sub-sections (5) and (5A) of Section 147.

Furthermore, the builder and developer will compute and pay the advance tax under this section on a project-to-project basis. Rules for the purpose of sub-section (5C) of Section 147 will be notified accordingly, the FBR added.

Copyright Business Recorder, 2023

Comments

Comments are closed.

Asif Aug 03, 2023 01:06am
Bad for builders and developers. But it might be good for serious buyers.
thumb_up Recommended (0)