The income tax circular 4 of 2017 issued by FBR here on Wednesday, for payments to non-residents on execution of a contract under a construction, assembly or installation project, tax rates for filer is 7 percent and non-filer is 13 percent; any contract for construction or services rendered relating thereto, tax rates for filer is 7 percent and non-filer is 13 percent and any contract for advertisement services rendered by TV satellite channels, tax rates for filer is 7 percent and non-filer is 13 percent;
In case of payments to permanent establishment of a non-resident for the sale of goods, tax rates for filer is 4 percent (company) for non-filer is 7 percent (company); payments to permanent establishment of a non-resident for the sale of goods, tax rates for filer is 4.5 percent (non-company) for non-filer is 7.75 percent (non-company). For payments to permanent establishment of a non-resident for rendering services, tax rates for filer is 8 percent (company) for non-filer is 14 percent (company) and payments to permanent establishment of a non-resident for rendering services, tax rates for filer is 10 percent (non-company) for non-filer is 17.5 percent (non-company).
The FBR said that the payments to permanent establishment of a non-resident for the execution of a contract, tax rates for filer is 7 percent and non-filer is 13 percent. For payments for sale of goods, tax rates for filer is 4 percent (company) for non-filer is 7 percent (company) and payments for sale of goods, tax rates for filer is 1.5 percent (non-company) for non-filer is 7.75 percent (non-company).
The payments for rendering of services is subjected to tax rates for filer is 8 percent (company) for non-filer is 14.5 percent (company) and payments for rendering of services, tax rates for filer is 10 percent (non-company) for non-filer is 17.5 percent (non-company). For payments for contracts, tax rates for filer is 7 percent (company) for non-filer is 12 percent, payments for contracts, tax rates for filer is 7.5 percent (non-company) for non-filer is 12.5 percent (non-company).
Payment for rent (company), tax rates for filer is 15 percent of gross rent and 17.5 percent of gross rent for non-filer. In case of prize on prize bond or cross word puzzle, tax rate for filer is 15 percent and non-filer is 25 percent. In case of commission/discount to a petrol pump operator, tax rate for filer is 12 percent and non-filer is 17.5 percent. For gas bill of a CNG station, tax rates for filer is 4 percent and non-filer is 6 percent and advance tax on sale by auction, tax rates for filer is 10 percent and non-filer is 15 percent.
Prior to the Finance Act, 2017, the upper limit for import of raw material by an industrial undertaking for its own use, without collection of tax at the import stage under section 148 of the Ordinance, was 110 percent of the raw material imported and consumed by such industrial undertaking in the previous tax year.
The limit for import of raw material by industrial undertakings, without collection of income tax at the import stage, on the basis of exemption certificate issued by the Commissioner, has been increased from 110 percent to 125 percent of the raw material imported and consumed in the previous tax year.
Furthermore, henceforth industrial undertakings importing edible oil, plastic raw materials falling under PCT Heading 39.01 to 39.12 and packing material shall not be entitled to exemption certificate under clause (728) of Part IV of the Second Schedule to the Ordinance.
Copyright Business Recorder, 2017