Finance Act, 2013 requires every market committee to collect advance tax from its members - dealers, commission agents, arhatis, etc, at the time of issuance or renewal of Licence for membership. The Federal Board of Revenue's (FBR) income tax circular issued on Friday explained that through Finance Act, 2013 a new section 236J is introduced requiring every market committee to collect advance tax from its members ie dealers, commission agents, arhatis, etc, at the time of issuance or renewal of Licence for membership.
The term market committee includes any committee or body formed under any provincial or local law made for the purposes of establishing, regulating or organising agricultural, livestock and other commodity markets. The tax shall be collected at the rates provided in Division XVII of Part IV of the First Schedule to the Income Tax Ordinance, 2001 on the basis of category of Licence. The withheld tax shall be adjustable in the hands of the member. The market committee, being a withholding agent, shall also file withholding statement under section 165 to the Income Tax Ordinance, 2001.
Through Finance Act,2013 a new section 236D has been introduced which provides for collection of adjustable income tax from a person arranging or holding a function in a marriage hail, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose. Where food, service or any other facility is provided by the same place the prescribed person shall collect the income tax at the rate of 10% on the total amount of bill from the person arranging such function, the FBR said.
However, where the food, service or any other facility is provided by any other person, the prescribed person shall also collect advance income tax at the rate of 10% on the payment for such food, service or facility from the person arranging or holding the function. The prescribed person for the purposes of this provision includes the owner, a lease-holder, an operator or a manager of a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose, the FBR said.
An inclusive definition of the term functions has also been provided which includes any wedding related event, a seminar, a workshop, a session, an exhibition, a concert, a show, a party or any other gathering. The prescribed person is also liable to file withholding statement under section 165 of the Ordinance.
Through Finance Act, 2013 a new section 236E has been introduced which provides for collection of advance income tax as per rates provided in Division XII of Part IV of the First Schedule from any landing rights channel for screening and viewing of any foreign TV drama serial or a play dubbed in Urdu or any other regional language. The advance tax collected under this section is adjustable.
This tax shall be collected by the licensing authority certifying the foreign-produced TV plays and serials for screening and viewing. The licensing authority is also obligated to file withholding statement under section 165, FBR said. The FBR explained that as per newly inserted section 236F Pakistan Electronic Media Regulatory Authority shall collect advance income tax from cable operators and persons providing other electronic media at the time of issuance and renewal of Licence to a Licencee and permission to cable television operators and other distribution services ie Direct to Home Television Distribution System (DTH), electronic media, Internet Protocol TV (IPTV), loop holder, Multi Channel Multi Point Distribution System (MMDS), Mobile TV, FM Radio, Mobile Audio, Satellite TV Channel and Landing Rights.
The tax withheld under this section shall be adjustable. The withholding agent for the purposes of this section, Pakistan Electronic Media Regulatory Authority shall have to file withholding statement under section 165. The rates of withholding tax are provided in Division XIII of Part IV of the First Schedule, the FBR said.
Under Finance Act, 2013 a new section 236G has been introduced which requires collection of advance income tax by every manufacturer or commercial importer of electronics, sugar, cement, iron and steel products, fertiliser, motorcycles, pesticides, cigarettes, glass, textile, beverages, paint or foam sector. The tax shall be collected from distributors, dealers and wholesalers, at the time of sale of the above goods/products.
The rate of tax is prescribed at 0.1 percent of the gross amount of the sale which shall be adjustable in the hands of the distributor, dealer or wholesaler on the taxable income for the tax year in which the tax was collected. Through Finance Act,2013 a new section 236G is introduced which requires collection of advance income tax by every manufacturer distributor, dealer, wholesaler or commercial importer of electronics, sugar, cement, iron and steel products, fertilizer, motorcycles, pesticides, cigarettes, glass, textile, beverages, paint or foam sector. The tax shall be collected from retailers at the time of sale of the above goods/products.
The rate of tax is prescribed at 0.5 percent of the gross amount of the sale which shall be adjustable in the hands of the retailers on the taxable income for the tax year in which the tax was collected. As per newly inserted section 236I every educational institution is required to collect advance income tax at the rate of 5% on the amount of fee paid to an educational institution. The person responsible for preparing monthly, bimonthly or quarterly fee voucher or challan shall also charge withholding tax in case the fee exceeds two hundred thousand rupees annually.
The term fee includes tuition fee and all charges received by the educational institution, by whatever name called, excluding the amount which is refundable. The tax collected in this section is adjustable. The withholding agent for the purposes of this section ie educational institution shall also provide details in the withholding statement to be filed under section 165 to the Income Tax Ordinance, 2001, the FBR added.