KARACHI: Federal Board of Revenue (FBR) has said that telephone and internet subscribers receiving monthly bill over Rs1,000 can adjust 10 percent withholding tax against their total tax liability.
According to Withholding Tax Card 2017-18, the FBR notified withholding tax rates for telephone and internet users as defined under Section 236 of Income Tax Ordinance, 2001.
The FBR said that there will be no withholding tax on monthly bill up to Rs1,000. However, the withholding tax rate will be 10 percent on bill exceeding Rs1,000.
The FBR further said that persons preparing telephone/internet bill or issuing/selling prepaid card for mobile phones/internet shall collect the withholding tax from telephone subscribers, internet subscriber, purchaser of internet prepaid cards, telephone subscriber and purchaser of prepaid telephone cards along with payment of telephone bill or at the time of issuance of or sales of prepared cards.
In case of subscriber of internet, mobile telephone and pre-paid internet or telephone card the withholding tax will be 12.5 percent of the amount of bill or sales price of internet prepaid card or prepaid telephone card or sale of units through any electronic medium or whatever form.
