Income Tax Ordinance 2001: amended advance tax rates on marriages, functions

KARACHI: Federal Board of Revenue (FBR) has updated advance tax rates on marriages and functions through latest amendment to Income Tax Ordinance, 2001.

The national assembly recently approved Finance Supplementary (Second Amendment) Act, 2019 and advance tax rate for functions and gathering has been updated.

The advance tax is collected under following section of the Ordinance.

Section 236D: Advance tax on functions and gatherings

Sub-Section (1): Every prescribed person shall collect advance tax at the rate specified in Division XI of Part IV of the First Schedule on the total amount of the bill from a person arranging or holding a function in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose.

Sub-Section (2): Where the food, service or any other facility is provided by any other person, the prescribed person shall also collect advance tax on the payment for such food, service or facility at the rate specified in Division XI of Part IV of the First Schedule from the person arranging or holding the function.

Sub-Section (3): The advance tax collected under sub-section (1) and sub-section (2) shall be adjustable.

Sub-Section (4): In this section,—

(a) “function” includes any wedding related event, a seminar, a workshop, a session, an exhibition, a concert, a show, a party or any other gathering held for such purpose; and

(b) “prescribed person” 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 rate of tax to be collected under each sub-sections (1) and (2) of section 236D shall be 5%;

Provided that the rate for the function of marriage in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose shall be as set out in the Table below:─

S. No. Rate of tax  
01 5% of the bill ad valorem or Rs20,000 per function, whichever is higher For Islamabad, Lahore, Multan,Faisalabad, Rawalpindi, Gujranwala, Bahawalpur, Sargodha, Sahiwal, Shekhurpura, Dera Ghazi Khan, Karachi, Hyderabad, Sukkur, Thatta, Larkana, Mirpur Khas, Nawabshah, Peshawar, Mardan, Abbottabad, Kohat, Dera Ismail Khan, Quetta, Sibi, Loralai, Khuzdar, Dera Murad Jamali and Turbat.

 

02 5% of the bill ad valorem or Rs10,000 per function, whichever is higher For cities other than those mentioned above.

Through Finance Supplementary (Second Amendment) Act, 2019, the following amendment has been inserted:

“Provided further that the rate for the function of marriage in a marriage hall, marquee or a community place with the total function area less than 500 square yards or, in case of a multi-stories premises, with the largest total function area on one floor less than 500 square yards, shall be 5 percent of the bill ad valorem or Rs5,000 function whichever is higher.”

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4 Comments

  1. This is very unfair to the people how are alredy very poor,who are hardly able to bear expenses of wedding,dowry hall,etc. They save money their whole life for their daughter’s wedding. This is just another way to burden a person who is already facing a lot.

  2. This is just disgusting . Already marriages are Barred by heavy expenses which are not affordable by poor people besides this it shall react not less than Nagasaki blast .

  3. This Tax should be applicable @1% as advance Tax ( adjustable) or Rs 5000 whichever is higher on all functions. The present rate of Tax is unjustified, and the Revenue Minister is requested to please look into the issue.

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