Textile Advisor seeks solution of advance turnover tax on local sales

Posted by admin on Jul 9, 2009

KARACHI, Jul. 3 (APP)- Federal Advisor on Textiles, Dr. Mirza Ikhtiar Baig has urged PM’s Advisor on Finance Shaukat Tareen to remove anomaly in the budget regarding the calculation of turnover tax from export sales on local sales. In a statement here Friday, Dr Baig said that he has invited the attention of Shaukat Tareen towards this anomaly and urged him to allow tax of 1% withheld on export sales adjustable against the combined turnover from export sales and local sales for calculating if the tax paid on the combined turnover is 0.5% or more thus fulfilling the conditions of Section 113 of the Income Tax Ordinance 2001.
He said that minimum tax under Section 113, which was deleted in tax year 2009, has been re-levied from tax year 2010 vide Finance Act 2009.

Previously upto tax year 2008 when minimum tax u/s 113 was payable, the company has to pay “no” tax u/s 113 if tax already deducted against export sales was more than 0.5% of the combined turnover from export sales and local sales.

Dr Baig said that vide Finance Act 2009, the companies have been made liable to pay minimum tax of 0.5% u/s 113 on the component of their local sales even if their withholding tax of 1% on export proceeds is more than 0.5% of the combined turnover from export sales and local sales.

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Posted by admin on Apr 11, 2009

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