Income Tax Ordinance, 2001

CHAPTER-X

PROCEDURE PART V ADVANCE TAX AND DEDUCTION OF TAX AT SOURCE Division III Deduction of Tax at Source

From: 2023-07-01 - To: 0000-00-00 1[153. Payments for goods, services and contracts.- (1) Every prescribed person making a payment in full or part including a payment by way of advance to a resident person 2[***] 3[***] - (a) for the sale of goods 4[including toll manufacturing] 5[,except where payment is less than seventy-five thousand Rupees in aggregate, during a financial year]; (b) for the rendering of or providing of services 6[except where payment is less than thirty thousand Rupees in aggregate, during a financial year]; (c) on the execution of a contract, 7[including contract signed by a sportsperson] 8[but not including] a contract for the sale of goods or the rendering of or providing of services, shall, at the time of making the payment, deduct tax from the gross amount payable (including sales tax, if any) at the rate specified in Division III of Part III of the First Schedule 9[: Provided that where the recipient of the payment under clause (b) receives the payment through an agent or any other third person and the agent or, as the case may be, the third person retains service charges or fee, by whatever name called, from the payment remitted to the recipient, the agent or the third person shall be treated to have been paid the service charges or fee by the recipient and the recipient shall collect tax along with the payment received.] (2) Every exporter or an export house making a payment in full or part including a payment by way of advance to a resident person or permanent establishment in Pakistan of a non-resident person for rendering of or providing of services of stitching, dying, printing, embroidery, washing, sizing and weaving, shall at the time of making the payment, deduct tax from the gross amount payable at the rate specified in Division IV of Part III of the First Schedule. (3) The tax 10[deductible] under 11[***] sub-section (1) and under sub-section (2) of this section, on the income of a resident person or 12[***], shall be 13[minimum] tax. Provided that,-- (a) tax deducted under clause (a) of sub-section (1) shall 14[not be minimum tax] where payments are received on sale or supply of goods, by a, (i) company being a…