Persons organizing function, gathering required to pay 5pc advance tax


KARACHI: Every person organizing a function of marriage or social gathering in a hall or a lawn shall pay five percent advance tax of the total paid amount.
According to Withholding Tax Card 2017/2018 issued by the Federal Board of Revenue (FBR), five percent advance tax has been imposed on function and gatherings under Section 236D (1) of Income Tax Ordinance, 2001.
The withholding agents or recipients of the payment shall collect the advance tax from persons holding or arranging a function in a marriage hall, marguee, hotel, restaurant, commercial lawn, clubs, community place or any other place used for such purpose at the time of payment of bill.
Similarly, under Section 236D (2) of the Ordinance, the withholding agents shall collect five percent advance tax on payment of food services any other facility related to function and gathering.
The advance tax in both the cases is adjustable against the total liability of a taxpayer.