Exemption Certificate

[aqaiser]

Dear Fellow Member,

I want to get your expert opinion about witholding tax certificate. Currently i am an individual and my taxable income is below the taxable slab for taxation. Infact i have faced losses. But my customers are deduction 3.5% on all of my sales which means i have submitted atleast 3.5% of sales value to income tax department.

I want to get exemption under section 153. Guide me in this concern.

Thanks.

[Sarfaraz Khan]

u can get the exemption certificate, for that u have to pay advance tax. this certificate normally issues on the basis of ur past history of paying tax.

second thing, if ur invoice amount is more than 25000 then the customer will deduct tax, or if ur regular supply to same customer exceed ur financial year supplies amount Rs.25000, then he will deduct.

third point is this, what ever customer deduct, all are adjustable . u have to pay to FBR only ur due tax, in case of exceed deduction by customers, u will get refund claim or vise versa.

make it sure u r a registered supplier, and ur customer issue u a valid certificate of deduction.


regards,