Calculation of WHT on Rent

[awaisaftab]

How the WHT on rent is calculated? Suppose a company pays rent of Rs. 1300,000/- to other company in lump sum for the period of more than one month and then what will be the exact amount of WHT.

Regards,

Awais Aftab

[faisal_desperado]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by awaisaftab</i>
<br />How the WHT on rent is calculated? Suppose a company pays rent of Rs. 1300,000/- to other company in lump sum for the period of more than one month and then what will be the exact amount of WHT.

Regards,

Awais Aftab
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Rs. 95,000 is to be withheld on payment of rent of Rs. 1,300,000 <b>to company</b>,
The same amount of tax is to be withheld by the tenant, which is the actual tax liablity of property owner under section 155,

In this regard note the following ( Rate of Tax for companies u/s 155)

(1)Where the gross amount of rent does not exceed Rs.400,000,
5 per cent of the gross amount of rent.

(2)Where the gross amount of rent exceeds Rs.400,000 but does not exceed Rs.1,000,000.
Rs.20,000 plus 7.5 per cent of the gross amount of rent exceeding Rs.400,000.

(3)Where the gross amount of rent exceeds Rs.1,000,000
Rs.65,000 plus 10 per cent of the gross amount of rent exceeding Rs.1,000,000.”

Calculate on the basis of above, it will amount to Rs.95,000

Best Regards,

[Omeir]

Is this rate applicable to both commercial and residential rent?

[faisal_desperado]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Omeir</i>
<br />Is this rate applicable to both commercial and residential rent?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Aforementioned rates are only applicable for companies , i.e. if the property holder is a company ,

However,Rates applicable on property income of AOPs & individuals are the following,

(1) Where the gross amount of rent does not exceed Rs.150,000.
Nil

(2)Where the gross amount of rent exceeds Rs.150,000 but does not exceed Rs.400,000,5 per cent of the gross amount exceeding Rs.150,000.

(3)Where the gross amount of rent exceeds Rs.400,000 but does not exceed Rs.1,000,000,Rs.12,500 plus 7.5 per cent of the gross amount exceeding Rs.400,000.

(4)Where the gross amount of rent exceeds Rs.1,000,000,Rs.57,500 plus 10 per cent of the gross amount exceeding Rs.1,000,000.


Best Regards,

[Omeir]

Dear Faisal,

If possible could you please provide the section.

[faisal_desperado]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Omeir</i>
<br />Dear Faisal,

If possible could you please provide the section.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Omeir,
I have already mentioned the section i.e. 155
however, go through the following.

http//www.fbr.gov.pk/budget2009-2010/fb/Financebill.pdf

Page number 53 and onward

Regards,