09-12-2011, 07:21 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by beyond.spirits</i>
<br />AOA,
We are in Medical Billing and Transcription (Services) business dealing with clients from USA. My question is can we claim amount of withholding tax paid on utility bills of electricity, GAS and Phone and withholding tax paid on cash withdrawls from bank. If yes then kindly explain the procedure. And I must mention that Income of Company is tax exempt as it is involved in export services business.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Walaikum us Salam,
Claiming of amount deducted or collected as withholding tax has nothing to do with the point whether your income is exempt or not. It only depends on issue, whether the amount deducted was adjustable or final liability. If it is adjustable then you will claim its adjustment against your tax liability. If your tax liability is zero then you will become entitled to its refund.
On gas bill no income tax is withheld.
Income Tax withheld on phone, mobile and cash withdrawal are adjustable , you may claim refund.
Income tax withheld on electricity is also adjustable in the case of company
As far as procedure is concerned. You will file return. In return, you will show whole income as exempt income. In Annexure B, you will give details of amount withheld. This will be transferred to page 1.
For example on electricity tax paid is 100
on telephone 200
on cash withdrawal 200
Total of Annexure B would be Rs.500
It will be transferred to page 1
Tax payable minus total of Annexure B
Tax payable is zero while total of annexure B is 500
so 0 - 500
= -500
So your return will show refund of Rs.500
Now apply for refund in prescribed form for refund u/s 170.
If refund application not decided within sixty days, you may file appeal or complaint to FTO.
<br />AOA,
We are in Medical Billing and Transcription (Services) business dealing with clients from USA. My question is can we claim amount of withholding tax paid on utility bills of electricity, GAS and Phone and withholding tax paid on cash withdrawls from bank. If yes then kindly explain the procedure. And I must mention that Income of Company is tax exempt as it is involved in export services business.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Walaikum us Salam,
Claiming of amount deducted or collected as withholding tax has nothing to do with the point whether your income is exempt or not. It only depends on issue, whether the amount deducted was adjustable or final liability. If it is adjustable then you will claim its adjustment against your tax liability. If your tax liability is zero then you will become entitled to its refund.
On gas bill no income tax is withheld.
Income Tax withheld on phone, mobile and cash withdrawal are adjustable , you may claim refund.
Income tax withheld on electricity is also adjustable in the case of company
As far as procedure is concerned. You will file return. In return, you will show whole income as exempt income. In Annexure B, you will give details of amount withheld. This will be transferred to page 1.
For example on electricity tax paid is 100
on telephone 200
on cash withdrawal 200
Total of Annexure B would be Rs.500
It will be transferred to page 1
Tax payable minus total of Annexure B
Tax payable is zero while total of annexure B is 500
so 0 - 500
= -500
So your return will show refund of Rs.500
Now apply for refund in prescribed form for refund u/s 170.
If refund application not decided within sixty days, you may file appeal or complaint to FTO.
