WITHOLD TAX ON PAYMENT TO PTCL ???

[ganatra007]

AOA...PAKISTAN TELECOMMUNICATION PROVIDES SERVICES TO US. IS PTCL EXEMPT FROM DEDUCTION OF INCOME TAX ON ITS BILLS PAYMENTS...WHEN WE ARE DEDUCTING MOBILE PHONE COMPANIES TAX, FROM THEIR BILLS WHY NOT PTCL? IF PTCL IS EXEMPT LIKE KESC,SSGC ..PLEASE CLARIFY... THANKS IN ADVACE...

[student_of_law]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by ganatra007</i>
<br />AOA...PAKISTAN TELECOMMUNICATION PROVIDES SERVICES TO US. IS PTCL EXEMPT FROM DEDUCTION OF INCOME TAX ON ITS BILLS PAYMENTS...WHEN WE ARE DEDUCTING MOBILE PHONE COMPANIES TAX, FROM THEIR BILLS WHY NOT PTCL? IF PTCL IS EXEMPT LIKE KESC,SSGC ..PLEASE CLARIFY... THANKS IN ADVACE...
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

I couldn't find anything in Income Tax Ordinance, 2001 that may suggest that no withholding tax shall be deducted from payments made to PTCL for rendering of services.

If PTCL claims so, then ask them legal basis (Section or entry in Second Schedule) for that.

It is possible that they may have exemption certificate. Then they will have to furnish the exemption certificate and then you will not deduct withholding tax