Withholding Tax Card 2016/2017: payment of commission to petroleum dealers
KARACHI: The Federal Board of Revenue (FBR) has updated withholding tax rates on payment of commission made by petroleum company to a petrol pump operator at the different rates specified for filers and non-filers of income tax returns during fiscal year 2016/2017.
Section 156A of Income Tax Ordinance, 2001 related to petroleum products.
Sub-section (1) every person selling petroleum products to a a petrol pump operator shall deduct tax from the amount of commission or discount allowed to the operator at the rate of 12 percent from filer of income tax return and 15 percent from non-filer of income tax return.
Sub-section (2) The tax deductible under sub-section (1) shall be a final tax on the income arising from the sale of petroleum products to which sub-section (1) applies.