03-28-2009, 09:12 PM
I would like to add some thing,usually in ignorence some company when enter in the contract they dont care and try to get the contracts without going into its legality and implications of tax under income tax ordinance 2001 and ends up with the levey of turn key contracts.
Therefore care should be made at the time of the contract if services are the immeterial portion or supplies are mot material than one should not go as a single contract it will become a turn key and ends up with levy of 6% of tax.In these cases there should be two contracts one of supply of material and the other would be of services.
Therefore care should be made at the time of the contract if services are the immeterial portion or supplies are mot material than one should not go as a single contract it will become a turn key and ends up with levy of 6% of tax.In these cases there should be two contracts one of supply of material and the other would be of services.
