Withholding tax card 2019/2020: minimum Rs20,000 payable on wedding event in major cities

ISLAMABAD: Federal Board of Revenue (FBR) to collect minimum Rs20,000 as adjustable advance tax from a person, who makes payment for wedding event at a commercial hall or lawn in major cities of the country.

According to updated withholding tax card for tax year 2019/2020 effective from July 01, 2019, the FBR said that under Section 236D of Income Tax Ordinance, 2001, prescribed persons / withholding agents shall collected the adjustable advance tax from person holding or arranging a function.

Every prescribed person shall collect tax under Section 236D(1) on the total amount of bill paid by a person holding or arranging functions in a marriage hall, Marquee, Hotel, Restaurant, Commercial Lawn, Clubs, Community Place or any other place used for such purpose:

tax rate for the function of marriage shall be:

5 percent of the bill ad valorem or Rs. 20,000, whichever is higher for the following cities:

Islamabad, Lahore, Multan, Faisalabad, Rawalpindi, Gujranwala, Bahawalpur, Sargodha, Sahiwal, Shekhupura, 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

(ii) 5 percent of the bill ad valorem or Rs. 10,000/- whichever is higher for other cities.

[New proviso]

The rate for the function of marriage will be 5 percent of the bill ad valorem or Rs. 5,000/- whichever is higher :

(a) In the case of a marriage hall, marquee or a community place, with total function area less 500 sq. yards; or

(b) In case of a multi storied premises, with the largest total function area on one floor less than 500 sq. yards.

The FBR said that under Section 236D(2) the tax rate for other functions shall be five percent on payment of food, service, or any other facility related to function and gathering.

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