<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by zara khan</i>
<br />our organization ve purchased software from local market.is it exempted from withholding tax or not?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Computer softwares are designed/prepared by programmers, who come under the ambit of section 153(1)b, hence 6% tax will withheld on the invoice amount.
no not exempted, whenever you will pay the amount of that software you must deduct 6 % I tax from whole amount of bill, than you will pay it, the amount of I tax you must be return, you have to make this entry for I tax purposes,, DR Supplier(provider name) CR I Tax deducted from Supplier head,
Thanks
Regadss
Accounts Manager
Rifi
ote]<i>Originally posted by faisal_desperado</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by zara khan</i>
<br />our organization ve purchased software from local market.is it exempted from withholding tax or not?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Computer softwares are designed/prepared by programmers, who come under the ambit of section 153(1)b, hence 6% tax will withheld on the invoice amount.
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by zara khan</i>
<br />what would be the rate of withholding tax on purchasing of anti-virus software.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear,
This query needs clarification,
If the said software has been purchased on the basis of a contract, which stipulates conditions with regards to the post acquisition services/traning etc, then the same must be taxed at the rate of 6%.
However, if the software has simply been purchased from a supplier and no stipulations have been made, then it should be treated as a purchase of good, and accordingly the rate of tax should be 3.5%.
One more thing, what if one purchases online while paying through the credit card. There will be no 3.5% or 6% deduction? How can a limited company in such way?