Tag: withholding tax

FBR acquires information of motor vehicle purchasers

KARACHI: Federal Board of Revenue (FBR) has asked motor vehicle registration authorities and car manufacturers to provide information of persons, who are registration or purchasing motor vehicles.

The FBR has advised motor vehicle registration authorities and manufacturers of motor vehicles to provide details of persons whose withholding tax was deducted under Section 231B at the time of motor vehicle registration or purchase of motor vehicles.

The tax authorities also advised the withholding agents to comply with the changes brought through Finance Act, 2019 under which the submission of withholding statement had been made mandatory twice in a year.

The FBR asked the motor vehicle registration authority and car manufacturers to provide information in case of both categories i.e. compliant taxpayers or persons not on the Active Taxpayers List (ATL).

From Tax Year 2020 (July 01, 2019 to June 30, 2020) the persons not appearing on ATL will liable to pay 100 percent higher withholding tax.

The FBR is acquiring information for broadening of tax base purpose. The tax authorities believed that number of individuals were purchasing cars or registering motor vehicles, who were not on the tax roll or in other case compliant but those were concealing true income.

Under Section 165 of the Income Tax Ordinance, 2001 the FBR empowered to obtain information from withholding agents.

While withholding agents are required to provide information of persons making transactions, included:

(a) the name, Computerized National Identity Card Number, National Tax Number and address of each person from whom tax has been collected under Division II of this Part or Chapter XII or the Tenth Schedule or to whom payments have been made from which tax has been deducted under Division III of this Part or Chapter XII or the Tenth Schedule in each half-year

(b) the total amount of payments made to a person from which tax has been deducted under Division III of this Part or Chapter XII or the Tenth Schedule in each half-year

(c) the total amount of tax collected from a person under Division II of this Part 1or Chapter XII or the Tenth Schedule or deducted from payments made to a person under Division III of this Part or Chapter XII or the Tenth Schedule in each half-year; and

(d) such other particulars as may be prescribed

Provided that every person as provided in sub-section (1) shall be required to file withholding statement even where no withholding tax is collected or deducted during the period.

Every prescribed person collecting tax under Division II of this Part or Chapter Xll or the Tenth Schedule or deducting tax under Division III of this Part of Chapter Xll or the Tenth Schedule shall furnish statements under sub-section (l) as per the following schedule, namely:-

(a) in respect of the half-year ending on the 30th June, on or before the 31st day of July; and

(b) in respect of the half-year ending on the 31st December, on or before the 31st day of January.

October 11, 2019
Salary persons should obtain withholding income tax deduction certificates to get refund/adjustment

KARACHI: Salary persons having above threshold income for tax year 2019 should obtain certificates of withholding tax in order to get refund / adjustment after filing annual income tax returns.

There are many provisions of withholding taxes under Income Tax Ordinance, 2001 where withholding agents deduct tax, which are adjustable against tax liability of taxpayers.

In those cases where salaried persons driving income less than threshold income are also required to file income tax returns to claim their refunds against tax deducted under withholding provisions.

For tax year 2019 the income tax return filing date is due on September 30, 2019 for salaried persons, business individuals and association of persons.

The salaried persons driving income above threshold income i.e. above Rs400,000 are required to file income tax return electronically.

For the tax year 2019, the total tax amount is Rs1,000 for full year where the taxable income exceeds Rs400,000 but does not exceed Rs800,000.

Similarly, the tax amount is Rs2,000 for full year where the taxable income exceeds Rs800,000 but does not exceed Rs1,200,000.

The FBR also prescribed tax rate for other slabs of income of salaried persons.

The FBR collect withholding tax through withholding tax agents from persons filing or not filing income tax returns. However, tax rates higher for persons those are not filing income tax returns. But in case a person is non-filer paid higher amount as withholding tax can claim refund or adjustment after filing income tax return for the tax year in which the deduction was made.

The FBR collects billions of rupees as adjustable withholding tax and it deposited in national kitty as taxpayers do not bother to claim.

A taxpayer can claim all those tax deduction, which are adjustable, but after filing annual income tax return.

A person can claim refund / adjustment on tax deducted under major provisions of Income Tax Ordinance, 2001:

Section 155: tax paid made on account of rent of immovable property.

Section 156B: tax paid on withdrawal of balance under pension fund.

Section 231A: tax paid on cash withdrawal from banks

Section 231B: advance tax paid on purchase or lease of motor vehicles.

Section 235A: tax paid on electricity consumption by domestic consumers

Section 236: advance tax paid to phone company or internet service provider

Section 236B: advance tax paid on purchase of domestic air ticket.

Section 236C: advance tax paid at the time of sale of immovable property.

Section 236D: advance tax paid on organizing function or gathering.

Section 236I: advance tax paid while paying fee to educational institutions.

Section 236K: advance tax paid on purchase of immovable property.

Section 236L: Advance tax on purchase of international air ticket.

Section 236P: Non-filer who paid tax on non-cash banking transactions can avail adjustment on filing income tax return.

Section 236R – advance tax paid on education related expenses remitted abroad.

Section 236U – advance tax on insurance premium

Section 236 Y – Advance tax on persons remitting amount abroad through payment of debit or credit card.

September 14, 2019
FBR to launch audit of withholding agents

KARACHI: Federal Board of Revenue (FBR) on Monday initiated a program of skill development of its officials to conduct system audit of withholding agents.

A statement said that under the dynamic leadership of Syed Shabbar Zaidi, Chairman, FBR, a new initiative had been taken up by Faheem-ul-Haq, Director General (Withholding) and launched by Dr. Aftab Imam, Chief Commissioner, Corporate Regional Tax Office, Karachi.

This initiative comprises the skill development of officers for system audit of withholding agents to monitor and improve the collection and deposition of withholding tax.

The field officers of all eight field formations of Sindh and Balochistan i.e. Corporate RTO Karachi, Large Taxpayers Units I & II, RTO II & III Karachi, RTO Hyderabad, Quetta and Sukkur; are being trained into the system audit of withholding agents by a renowned chartered accountant.

August 27, 2019

FBR issues new withholding sales tax rates on supplies

ISLAMABAD: Federal Board of Revenue (FBR) has announced new rates of withholding sales tax after abolishing Sales Tax Special Procedure (Withholding) Rules, 2007.

The FBR said that as Sales Tax Special Procedure (Withholding) Rules, 2007, have been rescinded, the rates of withholding and exclusions for the same have been provided in newly inserted Eleventh Schedule, as provided in amended section 3(7) of Sales Tax Act, 1990, effective from July 01, 2019, as under:

Table

S.No.	Withholding agent	Supplier category	Rate or extent of deduction
(1)	(2)	(3)	(4)
1	(a) Federal and provincial government departments; autonomous bodies; and public sector organizations (b) Companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001)	Registered persons	l/5th of Sales Tax as shown on invoice
2	(a) Federal and provincial government departments; autonomous bodies; and public sector organizations (b) Companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001)	Person registered as a wholesaler, dealer or distributor	1/10th of Sales Tax as shown on invoice
3	Federal and provincial government departments; autonomous bodies; and public sector organizations	Unregistered persons	Whole of the tax involved or as applicable to supplies on the basis of gross value of supplies
4	Companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001)	Unregistered persons	5% of gross value of supplies
5	Registered persons as recipient of advertisement services	Person providing advertisement services	Whole of sales tax applicable
6	Registered persons purchasing cane molasses.	Unregistered persons	Whole of sales tax applicable

The rates for withholding or deduction by the withholding agent shall not be applicable on following goods and supplies:

(i) Electrical energy;

(ii) Natural gas;

(iii) Petroleum products as supplied by petroleum production and exploration companies, oil refineries, oil marketing companies and dealers of motor spirit and high speed diesel;

(iv) Vegetable ghee and cooking oil;

(v) Telecommunication services;

(vi) Goods specified in the Third Schedule to the Sales Tax Act, 1990;

(vii) Supplies made by importers who paid value addition tax on such goods at the time of import; and

(viii) Supplies made by an Active Taxpayer as defined in the Sales Tax Act, 1990 to another registered persons with exception of advertisement services.

July 28, 2019

KCCI hails withholding tax exemption to yarn traders

KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has hailed the decision of Federal Board of Revenue (FBR) to exempt withholding tax for yarn traders.

In a statement issued on Monday President KCCI Junaid Esmail Makda appreciated the FBR for holding numerous meeting with KCCI and taking into consideration KCCI’s suggestion pertaining to exemption of withholding tax to yarn traders into consideration as they were overburdened with additional taxes.

Makda pointed out that under Section 45A of Part IV of the Income Tax Ordinance about Exemption from Specific Provisions, the sales, supplies and services made by traders of yarn to taxpayers from textile & articles, carpets, leather and Articles including artificial leather footwear, surgical goods and sportswear sector will not be subjected to deduction of withholding tax.

He said that such traders of yarn shall pay 0.1 percent minimum tax on their annual turnover on monthly basis on the 30th day of each month and monthly withholding tax statement shall be e-filed under the provision of section 165 of the Income Tax Ordinance, which was widely being demanded by relevant stakeholders.

He hoped that misinterpretation and incorrect application of Section 113 of Income Tax Ordinance which was against the spirit of SRO 333 (I) 2011 will not be repeated again and FBR would continue to take more such steps which were badly needed as the loyal taxpayers from different sectors of the economy were facing immense hardships and were finding it hard to continue their businesses because of exorbitantly high cost of doing business which must be brought down to provide a level playing field and make Pakistani goods competitive.

July 22, 2019
FBR notifies new chapter for sales tax withholding rules

ISLAMABAD: Federal Board of Revenue (FBR) has notified a new chapter for deduction and deposit of sales tax withholding on taxable goods and services.

The rules shall apply from today or July 01, 2019.

The FBR issued SRO 698(I)/2019 to amend Sales Tax Rules, 2006 to include Chapter XIV-D regarding withholding of sales tax by recipient of supply.

Following is the text of rules notified by the FBR through the SRO.

“150ZZH. Application.— (1) This chapter shall apply to taxable goods and services as are supplied to the withholding agents as specified in the Eleventh Schedule to the Act, for the purpose of deduction and deposit of sales tax persons registered as exporters.

(2) This chapter shall also apply to services on which federal excise duty is payable in sales tax mode, and the ones specified in the Schedule to the Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (XLII of 2001).

(3) Withholding agent, in case of supplies to Federal or Provincial Government departments, includes the accounting office which is responsible for making payment against the purchases made by a government department.

150ZZI. Responsibility of a withholding agent.--(1) The withholding agent, intending to make purchases of taxable goods, shall indicate in an advertisement or notice for this purpose that the sales tax to the extent as provided in this Chapter shall be deducted from the payment to be made to the supplier.

(2) A withholding agent, other than a recipient of advertisement services, shall deduct an amount as specified in the Eleventh Schedule to the Act and make payment of the balance amount to him as per illustration given below,–

ILLUSTRATION (in case 1/5th of sales tax amount is to be deducted)

Value of taxable supplies excluding sales tax: Rs. 1000

Sales tax chargeable @ 17%: Rs. 170

Sales tax to be deducted by the withholding Agent: Rs. 34 (i.e. Rs. 170 / 5)

Sales tax payable by the withholding agent to the supplier: Rs. 136 (i.e. Rs. 170-Rs.34)

Balance amount payable to the supplier by the withholding agent: Rs. 1136 (i.e. Rs. 1000 + Rs.136)

Provided that the withholding agent shall not be entitled to reclaim or deduct the amount of tax withheld from such persons as input tax.

(3) A person who receives advertisement services, in case the sales tax amount is not indicated on the invoice received, he shall deduct sales tax at the applicable rate of the value of taxable services from the payment due to the service provider.

(4) Where the purchases are made by a government department, the following procedure shall be observed, namely:–

(a) the Drawing and Disbursing Officer (DDO) preparing the bill for the accounting office shall indicate the amount of sales tax withheld as illustrated above. The accounting office shall adopt the procedure as indicated below:

(i) in case of purchases made by a department under the Federal Government, the office of the Accountant General of Pakistan Revenue shall account for the amount deducted at source during a month under the Head of Account “B02341-Sales Tax” and send an intimation to the Chief Commissioner, Regional Tax Office, Islamabad, by the 15th of the following month;

(ii) in case of purchases by departments under provincial or district governments, the Accountant General of the province or the District Accounts Officer, as the case may be, shall credit the amount deducted at source during a month to the head of account “GI2777-Sales Tax Deductions at Source under rule 40 & 40A of Chapter Miscellaneous of Sales Tax (Withholding) Rules, 2007”. Cheque for the amount will be prepared by the Accountant General or the District Accounts Officer, as the case may be, in the name of Commissioner having jurisdiction by debit to the aforesaid head of account and sent to the Commissioner by the 15th of the following month; and

(iii) where the purchases are made by the departments falling in purview of Military Accountant General, the MAG shall account for the amount deducted at source during a month under the Head of Account “B0234l-Sales Tax” and send intimation to the Chief Commissioner, Regional Tax Office, Rawalpindi, by the 15th of the following month. The amount so deducted at source shall be reported by MAG office to AGPR through civil exchange accounts; and

(b) the concerned Drawing and Disbursement Officer shall prepare the return in the form as set out in STR-28 for each month and forward the same to the Commissioner having jurisdiction by the 15th of the following month.

(5) In case of purchases, not covered by sub-rule (4) or sub-rule (6), the sales tax deducted at source shall be deposited by the withholding agent in the designated branch of National Bank of Pakistan under relevant head of account on sales tax return-cum-payment challan by 15th of the month following the month during which the purchase has been made. The return-cum-payment challan shall be prepared and deposited with the bank in triplicate and the bank shall send the original to the Commissioner of Sales Tax having jurisdiction, return the duplicate to the depositor and retain the triplicate for its own record:

Provided that a single return-cum-challan can be filed in respect of all purchases for which the payment has been made in a month.

(6) In case the withholding agent is also registered under the Sales Tax Act, 1990, or the Federal Excise Act, 2005, he shall deposit the withheld amount of sales tax along with return filed for the month in which the purchase was made in the manner as provided in Chapter II, along with other tax liability:

Provided that in case the withholding agent is not registered for sales tax or federal excise duty but holds a national tax number assigned under the Income Tax Ordinance, 2001 (XLIX of 2001), he shall file the return, as set out in STR-28, electronically and deposit the amount deducted at source in the manner as provided for persons filing returns electronically under rule 18:

Provided further that any other withholding agent may also opt to file the prescribed return electronically and deposit the deducted amount in the manner as provided in this sub-rule.

(7) The withholding agent shall furnish to the Commissioner of Sales Tax having jurisdiction all such information or data as may be requested by him for carrying out the purposes of these rules.

(8) A certificate showing deduction of sales tax shall be issued to the supplier by the withholding agent duly specifying the name and registration number of supplier, description of goods and the amount of sales tax deducted.

150ZZJ. Responsibility of the registered supplier.— (I) The registered supplier shall issue sales tax invoice as stipulated in section 23 of the Sales Tax Act, 1990, in respect of every taxable supply made to a withholding agent.

(2) The registered supplier shall file monthly return as prescribed in Chapter II, taking due credit of the sales tax deducted by the withholding agent, in the manner as prescribed in the return.

150ZZK. Responsibility of the Commissioner.—(1) The Commissioner shall keep a list of all withholding agents falling in his jurisdiction and monitor payment of tax deducted by withholding agents falling in his jurisdiction and shall also ensure that the return prescribed under these rules is filed.

(2) The Commissioner shall ensure that the return received from the bank is duly fed in the computerized system as referred to in clause (5AA) of section 2 of the Sales Tax Act, 1990.

(3) The Commissioner shall periodically ensure that the suppliers mentioned in the return filed by the withholding agents, as fall under his jurisdiction, are filing returns under Chapter II, and are duly declaring the supplies made to withholding agents.

150ZZL. Exclusions.-The provisions of this Chapter shall not apply to the supplies
of the following goods and services if made by a registered person, namely:-

(i) electrical energy;

(ii) natural gas;

(iii) petroleum products as supplied by petroleum production and exploration companies, oil refineries, oil marketing companies and dealers of motor spirit and high speed diesel];

(iv) telecommunication services;

(v) goods specified in the Third Schedule to the Sales Tax Act, 1990 (VII of 1990), and the goods on which federal excise duty is payable in sales tax mode on the basis of retail price;

(vi) supplies made by commercial importers who paid value addition tax on such goods at the time of import as prescribed under Twelfth Schedule to the Act, and

(vii) Supplies made by an active taxpayer as defined in the Sales Tax Act, 1990 to another registered person with the exception of advertisement services.”

This Notification shall take effect on and from the 1st day of July, 2019.

July 1, 2019
List of transactions not to attract 100 percent increased withholding tax

KARACHI: The Finance Bill 2019 has proposed a new schedule related to compliance with 100 percent increased withholding tax rates to persons not appearing on Active Taxpayers List (ATL).

Deloitte Yousuf Adil, Chartered Accountants in their budget commentary said that the increased withholding tax rates specified under this schedule are inapplicable with respect to following payments and related withholding tax provisions in the case of Person not appearing in the Active Taxpayer list:

Salary under section 149 of Income Tax Ordinance, 2001

Export under section 154 of Income Tax Ordinance, 2001

Income from Property under section 154 of Income Tax Ordinance, 2001

Withdrawal of Balance under Pension Fund under section 156B of Income Tax Ordinance, 2001

Cash withdrawal from Bank under section 231A of Income Tax Ordinance, 2001

Advance Tax on Transactions in Bank under section 231AA of Income Tax Ordinance, 2001

Collection of Tax by NCCPL under section 233AA of Income Tax Ordinance, 2001

Electricity Consumption under section 235 of Income Tax Ordinance, 2001

Domestic Electricity Consumption under section 235A of Income Tax Ordinance, 2001

Tax on Steel Melters, Re-Rollers etc under section 235B of Income Tax Ordinance, 2001

Advance Tax on Purchase of Air Tickets under section 236B of Income Tax Ordinance, 2001

Advance Tax on Functions and Gatherings under section 236D of Income Tax Ordinance, 2001

Advance Tax on Cable Operators and Other Electronic Media under section 236F of Income Tax Ordinance, 2001

Collection of Advance Tax by Educational Institutions under section 236I of Income Tax Ordinance, 2001

Advance Tax on Dealers, Commission Agents and Arthis etc under section 236J of Income Tax Ordinance, 2001

Advance Tax on Purchase of International Air Tickets under section 236L of Income Tax Ordinance, 2001

Advance Tax on Banking Transactions otherwise than through Cross Cheque under section 236P of Income Tax Ordinance, 2001

Payment to residents for use of machinery and equipment under section 236Q of Income Tax Ordinance, 2001

Collection of advance tax on education related expenses remitted abroad under section 236R of Income Tax Ordinance, 2001

Advance Tax on Insurance Premium under section 236U of Income Tax Ordinance, 2001

Advance Tax on extraction of minerals under section 236V of Income Tax Ordinance, 2001

Advance Tax on Tobacco under section 236X of Income Tax Ordinance, 2001

June 20, 2019
FBR urged to reduce withholding tax for FMCG distributors

KARACHI: Federal Board of Revenue (FBR) has been urged to reduce withholding tax rate to 0.2 percent for distributors of Fast Moving Consumer Goods (FMCG) companies as higher rate is increasing the cost of doing business.

The Overseas Investors Chamber of Commerce and Industry (OICCI) in its tax proposals for budget 2019/2020, said that the distribution of FMCG is a high turnover and low margin business.

This fact has also been acknowledged to some extent by the FBR by prescribing minimum taxation rate for the distributors of FMCG Companies at 0.2 percent of their turnover i.e. reducing the basic rate of minimum tax by 80 percent.

The OICCI suggested that the basic rate of withholding tax under section 153 for distributors of FMCG sector should be reduced to 0.2 percent in line with section 113 of income tax ordinance, 2001.

Giving rationale, it said that the high rate of withholding tax is increasing the cost of doing business as the existing withholding tax rate is higher than the net margin of distributors.

Another proposal, the OICCI said that ‘Aerated waters’ is the only item within food and beverage industry that is subject to both sales tax (third schedule of the Sales Tax Act, 1990) and FED (First Schedule of Federal Excise Act, 2005), while all other beverages (like: Juices, Tea & Milk based drinks) are only subject to sales tax at 17 percent.

Earlier in 2011-2012, FED rate was reduced from 12 percent to 6 percent with commitment that it shall be eliminated in 2 to 3 years but this was not implemented.

The OICCI recommended that the Federal Excise Duty (FED) should be decreased from 11.5 percent to 8.5 percent, and eliminated gradually.

The chamber pointed out that after the withdrawal of 58R of Special Procedure Rules, 2007, relating to the payment of Extra Tax on Specified Goods vide SRO 608(I) 2014 dated 02/07/2014, Large Trading Houses are now unable to issue sales Tax Invoice to Customers.

Resultantly, all Professional Customers are inclined to directly purchase from Manufacturers as they are issuing Sales Tax Invoice to their Customers.

Therefore, it recommended that Rule 58R which was withdrawn vide SRO 608(I) 2014 be restored only for Large Trading Houses operating as Wholesale-cum-retail under Chapter-XII.

Giving rationale, it said that it would create level playing field for Large Trading Houses.

The OICCI also submitted proposal for input Sales Tax on purchase of electrical and gas appliances.

The Sales Tax Act, 1990 does not permit adjustment of Input Sales Tax on purchase of electrical and gas appliances (including visi-coolers & industrial gas appliances etc.) under section 8(1)(h) of the Act.

The Act should be amended to allow for adjustment of such input sales tax.
Visi-Coolers are an integral part of beverage business and inadmissibility of input tax places beverage business at a disadvantage vis-à-vis other businesses, besides such inadmissibility escalates the cost of doing business.

In other industries, it is reiterated, that all input tax relatable to ‘taxable supplies made or to be made’ is admissible. Removal of restriction shall provide level playing field.

The OICCI on the issue of further tax on sales to retailers, said with reference to section 14 of the Act, retailers are required to obtain sales tax registration excluding those retailers who are required to pay sales tax through their electricity bill.

Moreover, as per section 3(1A) further tax at the rate of 3 percent is to be charged where supplies are made to unregistered person other than those mentioned in SRO 648 dated July 9, 2013.

Therefore it is recommended that retailers who pay their sales tax through electricity bill to be excluded from further tax through inclusion in SRO 648 dated July 9, 2013.

It will clear the ambiguity regarding applicability of further tax on these retailers.

June 7, 2019
FBR to reduce withholding tax provisions under World Bank program

ISLAMABAD: Federal Board of Revenue (FBR) is required to reduce number of withholding provisions to strengthen the income tax and take out this system from indirect taxes.

According to funding approved by the World Bank for Pakistan Revenue Mobilization Project, the FBR is required to reduce the scope of withholding regime.

The World Bank said that the funding requires a reduction in the types of transactions subject to income tax withholding.

“It contributes directly to transparency of the tax system, given that the withholding regime transforms income taxes into indirect taxes, which are less visible to taxpayers. It will also greatly reduce compliance costs for firms that have to act as withholding agents.

The World Bank also approved funds for transparent tax system for Pakistan. The World Bank said that under this funding the authorities require detailed reporting of tax expenditure in the annual budget documentation with disaggregated information about the cost and beneficiaries of each exemption and concession.

“It is important to broadening the tax base because it exposes the revenue foregone due to each exemption/concession, and the industries that benefit.”

The World Bank also stressed on coordination of the FBR with provinces. Under this funding program the FBR needs to reach agreements with the provinces on automated sharing taxpayer information, the methodology for calculating GST input adjustments, and common updated property valuation tables.

“This coordination will enable the FBR and the provinces to broaden their respective tax nets. Coordination can be facilitated through the newly established Fiscal Coordination Committee, comprising the federal and provincial governments.”

June 6, 2019
Withholding tax rates on electricity consumption for tax year 2019

KARACHI: The electricity supply company shall collect advance tax from industrial and commercial consumer as per updated withholding tax card for tax year 2019 issued after amendments made to Income Tax Ordinance, 2001 through Finance Supplementary (Second Amendment) Act, 2019.

Federal Board of Revenue (FBR) issued following withholding tax rates under Section 235 of Income Tax Ordinance, 2001 to be collected by person preparing electricity bills from commercial and industrial consumers of electricity along with payment of electricity consumption charges:

Does not exceed Rs. 400: Zero tax

Exceeds Rs400 but does not exceed Rs600: Rs80

Exceeds Rs600 but does not exceed Rs800: Rs100

Exceeds Rs800 but does not exceed Rs1000: Rs160

Exceeds Rs1000 but does not exceed Rs1500: Rs300

Exceeds Rs1500 but does not exceed Rs3000: Rs350

Exceeds Rs3000 but does not exceed Rs4500: Rs450

Exceeds Rs4500 but does not exceed Rs6000: Rs500

Exceeds Rs6000 but does not exceed Rs10000: Rs650

Exceeds Rs10000 but does not exceed Rs15000: Rs1000

Exceeds Rs15000 but does not exceed Rs20000: Rs1500

Exceeds Rs20000: (i) At the rate of 12 percent for commercial consumers; (ii) at the rate of 5 percent for industrial consumers.

The tax shall be:

(i) Adjustable In case of company.

(ii) in case of other than company tax collected on Rs, 360000 amount of annual bill will be minimum tax.

(iii) in case other than company tax collected on amount over and above Rs 30000/- of monthly bill will be adjustable.

(iv) Final for CNG Stations.

The withholding tax on domestic consumers of electricity under Section 235A shall be:

(i) If the amount of monthly bill is Rs75,000 or more: 7.5 percent

(ii) If the amount of monthly bill is less than Rs75,000: the tax rate shall be zero.

The withholding tax from every steel melters and composite steel units under Section 235B shall be Re 1 per unit of electricity consumed and the tax shall be non-adjustable.

May 8, 2019