10-01-2011, 03:33 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 [email protected]</i>
<br />I discussed this issue with 3 to 4 lawyers ans they are all convinced that according to the 2010 amendments every kind of AOP registered or unregistered have to deduct income tax regardless of the turnover.
This can be seen under s.152(9) clause,
"an association of persons2[constituted by, or under,] law."
2
Substituted for the words #8213;registered under#8214; by the Finance Act, 2002.
Hence registered or unregistered every AOP has to deduct tax while paying for purchase of good or services above Rs 25000
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
I have never said that there is any distinction between registered and unregistered AOP, under Income Tax Ordinance, 2001. I also agree that registered and unregistered both shall deduct tax on payment for supplies @ 3.5% <b><u>if and only if, their turnover exceeds fifty million rupees </u></b>.
I have already told you that s.153(1) says that Every prescribed person has to deduct withholding tax on payment for sale of goods.
Now the question is who are Prescribed Persons?
Prescribed persons are mentioned is given in s.153(7) of New s.153 and s.153(9) of old s.153
These subsection clearly says AOP having turnover exceeding Rs.50 million, is a prescribed person.
If you look at the list of Prescribed persons, you will also find individual having turnover of fifty million. No one says every individual is liable to deduct tax.
If your annual turnover is below Rs. fifty million you are not liable to deduct withholding tax on supplies. Law is very clear on that.
<br />I discussed this issue with 3 to 4 lawyers ans they are all convinced that according to the 2010 amendments every kind of AOP registered or unregistered have to deduct income tax regardless of the turnover.
This can be seen under s.152(9) clause,
"an association of persons2[constituted by, or under,] law."
2
Substituted for the words #8213;registered under#8214; by the Finance Act, 2002.
Hence registered or unregistered every AOP has to deduct tax while paying for purchase of good or services above Rs 25000
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
I have never said that there is any distinction between registered and unregistered AOP, under Income Tax Ordinance, 2001. I also agree that registered and unregistered both shall deduct tax on payment for supplies @ 3.5% <b><u>if and only if, their turnover exceeds fifty million rupees </u></b>.
I have already told you that s.153(1) says that Every prescribed person has to deduct withholding tax on payment for sale of goods.
Now the question is who are Prescribed Persons?
Prescribed persons are mentioned is given in s.153(7) of New s.153 and s.153(9) of old s.153
These subsection clearly says AOP having turnover exceeding Rs.50 million, is a prescribed person.
If you look at the list of Prescribed persons, you will also find individual having turnover of fifty million. No one says every individual is liable to deduct tax.
If your annual turnover is below Rs. fifty million you are not liable to deduct withholding tax on supplies. Law is very clear on that.
