Circular No. 10 of 2013, Islamabad, the 17th September, 2013

CLARIFICATION [N RESPECT OF SECTION 236D OF THE INCOME TAX ORDINANCE. 2001- ADVANCE TAX ON FUNCTIONS AND GATHERING GOVERNMENT OF PAKISTAN REVENUE DIVISION FEDERAL BOARD OF REVENUE C.No.4(39)ITP/2013 Islamabad, the 17th September, 2013 Circular No. 10 of 2013 (Income Tax) Subject: CLARIFICATION [N RESPECT OF SECTION 236D OF THE INCOME TAX ORDINANCE. 2001- ADVANCE TAX ON FUNCTIONS AND GATHERING Queries have been received in the Board regarding issues in respect of section 236D of the Income Tax Ordinance, 2001. Other issues are clarified as under: ________________________________________________________________________________ Sr. No. Queries Clarification ________________________________________________________________________________ 1. What is the minimum threshold of the bill Since section 236D is a new on which, tax is to he withheld provision distinct from section 153, therefore there is no minimum threshold of the bill for the purposes of section 2361) of the Income Tax Ordinance, 2001.Tax is to be collected on every bill irrespective of its amount. However, no tax is to be deducted if the gathering does not fall within the purview of function as defined in section 236D. ________________________________________________________________________________ 2. At what time should the tax be withheld As tax is to be collected on the total amount of bill, tax is to be withheld i) At time of final payment Or at the time of issuance of bill on the ii) At each stage of payment. day the function is held. ________________________________________________________________________________ 3. Once the advance tax is withheld, The tax withheld needs to be evidently we have to report the same to reported in monthly statement as per FBR. Is there any mechanism to report the provisions of section 165 of the this advance tax withheld or this will be Income Tax Ordinance, 2001. processed as per mechanism of tax deducted under section 153 and needs to Payment of tax with held in State's be reported in monthly statements other Exchequer is to be made Within 7 than salary day from the date of function. What would be the frequency of reporting (quarterly) and the time permissible for…