ST Special Procedure explained: WHT must be deposited by 15th of each month: FBR

The companies, recipients of advertisement services and registered exporters are now required to deposit the amount of sales tax withheld/to be withheld by 15th of each month following the month in which purchases were made (accrual basis).
Explaining the amended Sales Tax Special Procedure (Withholding) Rules, 2007 through SRO 485(I)/2015 dated June 30, 2015, a tax expert said that previously, withholding tax was deposited after payment to supplier.
Companies, recipients of advertisement services and registered exporters are now required to deposit the amount of sales tax withheld/to be withheld by 15th of each month following the month in which purchases were made (accrual basis). Previously, withholding tax was to be deposited after payment to supplier. Example, if goods are purchased on July 16, 2015 and payment to the supplier will be made in the month of November 2015, even then Sales Tax withheld will have to be deposited by August 15, 2015 as per the amended position. But this will lead to cash flow disadvantage.
The following products have been deleted from the list of exclusions from ambit of withholding rules: Mild Steel Products; products made from sheets of iron or non steel alloy, stainless steel or other alloy steel, such as pipes, almirahs, trunks etc; paper in roll and sheets; plastic products including pipes. Accordingly, tax will be deducted with respect to the above items.
Following items have been excluded from the ambit of withholding tax regime: Dealers of motor spirit and high speed diesel and registered persons paying sales tax under Chapter XI of the Sales Tax Special Procedure Rules, 2007 (steel melters, re-roller and ship breaker) except those paying sales tax on ad valorem basis.
He said that previously, in accordance with sub-rule 2A of Rule 2, petroleum dealers were included in the list of recipients suffering from Sales Tax withholding. As per the amendment, reference to petroleum dealers has been deleted from the said sub rule. Moreover, as per the amendment made in Rule 5, scope of exemption from Sales Tax withholding has been enhanced to dealers of motor spirit and high speed diesel.
As such, petroleum dealer on supply of their products (other than motor spirit and high speed diesel) will pay withholding tax.
The above SRO was uploaded on the FBR website and is effective from July 1, 2015, he added.