KARACHI: Federal Board of Revenue (FBR) has been urged to clarify status of a taxpayer to become withholding agent.
Institute of Chartered Accountants of Pakistan (ICAP) in its proposals for budget 2018/2019, said that the existing sub-clause (h) and (i) of clause (i) of sub-section (7) of Section 153 of Income Tax Ordinance, 2001 is not appropriately drafted.
In many cases where the turnover for the preceding years was less than Rs50 million and the current year turnover exceeds Rs50 million, the taxpayers are in a fiasco as to their obligations of the withholding agent since when (from the start of the current year or the day the turnover exceeds the threshold or the following year).
The ICAP recommended that an explanation should be added at the end of sub-section (7) of Section 153 to clarify that the withholding agent shall start to withhold tax from the year following the year in which the threshold of Rs50 million is reached.
