The Federal Board of Revenue (FBR) will collect reduced rate of one percent withholding tax on imports made by manufacturers doing business in textiles (including jute), carpets, leather, sports and surgical goods, irrespective of the type of imported goods covered under SRO 1125(1)/2011.
In this regard, the FBR has issued an income tax clarification to the All Pakistan Textile Mills Association (APMTA) here on Wednesday on chargeability of higher rate of withholding tax at import stage at 5.5% from the beneficiaries ie textile spinning units under SRO 1125(1)/2011 dated 31.12.2011.
According to the FBR, "manufacturers doing business in textiles (including jute), carpets, leather, sports and surgical goods sectors and fulfilling the conditions of SRO 1125, irrespective of the type of goods imported, are covered under SRO 1125(1)/2011 dated 31.12.2011 and reduced rate of 1% under Section 148 of the Income Tax Ordinance, 2001 will be applicable on their imports from 14.03.2013 till date.
Vide above referred letter, a clarification has been sought as to what rate of income tax is applicable on import of cotton by manufacturers covered under SRO 1125(1)/2011 dated 31.12.2011. Refer to the provisions of clause (9C) of Part II of the Second Schedule, Part II of the First Schedule to the Income Tax Ordinance, 2001 and SRO 1125(1)/2011 dated 31.12.2011 as amended through SRO 154(1)/2013 dated 28.02.2013 and to say that "manufacturers doing business in textiles (including jute), carpets, leather, sports and surgical goods sectors and fulfilling the conditions of SRO 1125, irrespective of the type of goods imported, are covered under SRO 1125(1)/2011 dated 31.12.2011 and reduced rate of 1% under Section 148 of the Income Tax Ordinance, 2001 will be applicable on their imports from 14.03.2013 till date, FBR's instructions added.
Comments
Comments are closed.