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020629
GOVERNMENT
OF PAKISTAN REVENUE DIVISION CENTRAL BOARD OF REVENUE
C.No.1(5)WHT/96-Pt
Islamabad, June 29, 2002.
CIRCULAR NO.08 OF 2002.
(INCOME TAX)
SUBJECT:
CLARIFICATION REGARDING COLLECTION OF ADVANCE INCOME TAX UNDER SECTION 236 OF THE INCOME TAX ORDINANCE, 2001 – FROM USERS OF PREPAID CARD AND SUBSCRIBERS OF MOBILE PHONES.
Section 236 of the
Income Tax Ordinance, 2001 provides that in the case of users of pre-paid telephone cards
and subscribers of mobile telephones, withholding tax @ 10% of the amount of bill or sales
price of pre-paid telephone card shall be collected.
2. For implementation of this change, meetings were held with the representatives of
the companies dealing with prepaid telephone cards. It is hereby clarified for information
of all concerned that cost of the card shall be the sales tax paid value of the card as
increased by 10% withholding tax. The following examples are given for information and
guidance:-
CARDS VALUE |
SALE PRICE OF CARDS |
||||
| Denomination Value | Company Price | GST @ 15% | Value for withholding tax | Withholding tax @ 10% | Total Card Value |
| Rs. 600 | 474 | 71 | 545 | 55 | 600 |
| Rs. 700 | 553 | 83 | 636 | 64 | 700 |
3. In the case of mobile phone,
withholding tax shall now be leviable @ 10% of the amount of the bill.
4. In the case of PTCL land lines there is no change in the old law which provides
collection of withholding tax at the following rates:-
PTCL telephones where monthly bill:-
| i) exceeds Rs.1,000 but does not exceed Rs.2,000. | Rs.100 |
| ii) exceeds Rs.2,000 but does not exceed Rs.3,000. | Rs.50 |
| iii) exceeds Rs.3,000 but does not exceed Rs.5,000 | Rs.200 |
| iv) exceeds Rs.5,000 | Rs.300 |
5. It is also clarified for the
information of the tax payers that tax withheld under section 236 of the Income Tax
Ordinance, 2001 in the manner indicated above is an advance tax which is adjustable
against the final tax liability.
6. All withholding agents are advised to collect the tax properly and deposit the
same in the Bank/Treasury within the stipulated time.
(Agha Muhammad Shah)
Secretary(WHT)
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