WHT on internet advertising through Google?

[farrukhzeeshan]

Our company uses Google Adwords for the internet marketing. As financial year is about to end, our tax consultant advising that we have to pay a withholding tax at the rate of 10%.

My question is as Google is not based in Pakistan and does not add tax in the invoice. How we can withhold tax from the payments. All the payments are paid through credit card and deducted automatically.

So please guide me if internet advertising is taxable. If yes, is it applicable on the companies not based in Pakistan as well. Thirdly, how we can withhold tax from payments to Google. Finally, what is the rate of withholding tax on internet advertising/


Thanks.

[LapTop]

Ap k tax consultant nay ap ko proper advice di hay.
Read Section 153A ITO

[awaisaftab]

You have to deduct tax while making payment at the prescribed rate applicable to non resident media person. However if there is tax treaty between Govt of Pakistan and the country in which the google is incorporated than the mater shall be treated in accordance with that tax treaty.