Vice Chairman Pakistan Cotton Ginners' Association (PCGA) has said ginners should strictly abide by the rules and regulations laid by Federal Board Revenue as they were declared withholding agents and they are binding to deduct 10 percent withholding tax from the supplier/middlemen and deposit the same in national treasury.
However, tax would not be deducted from farmers/landlords on production of a valid certificate of revenue department.
Addressing the tax advisory committee of PCGA on Friday Khan said that payment of Rs 50,000 or more would be made through cross cheque and ginners would keep the national tax number and computerised National Identity Card Number of the supplier in their custody which is mandatory under the law. He said that ginners would not violate the rules and regulations of the FBR and they can contact their tax advisors or help desk of PCGA in case of any complications.
He said that amendment has been made in the section 153 allowing ginners to pay withholding tax instead of deduction being made from payments by the withholding agents.
However, the ginners will be asked to furnish evidence of payment of tax to the withholding agents and the withholding agents will still be required to file prescribed statements of withholding tax, inter-alia, on the basis of challans provided by the ginners. However, in the absence of evidence of payment withholding agents shall deduct tax as required under the law.
The meeting of tax advisory committee was attended by Muhammad Akhtar Siddiqui, Mehboob A Sheikh,Waheed Baig Mirza, Shaikh Muhammad Nawaz, Khawaja Muhammad Azam, Rao Sadaruddin, Muhammad Asif Khalil and Zaid Ali Khan.