GOVERNMENT OF PAKISTAN

REVENUE DIVISION

CENTRAL BOARD OF REVENUE

SUBJECT: PRESUMPTIVE TAXATION OF PERSONS RENDERING SERVICES - CLARIFICATION REGARDING.

The Central Board of Revenue has received queries seeking clarification as to the persons "rendering services" who are covered by the amended provisions of section 80C and in whose cases the tax deducted u/s 50(4) would be the final discharge of their tax liability.

2. The matter has been examined and it is clarified that the "services", other than the professional services rendered by doctors, lawyers, accountants, auditors, architects, surveyors, engineers, advisors and consultants, on which tax is deductible u/s 50(4), will be the final discharge of tax liability from Assessment Year 2000-2001. It is further clarified that the tax so deducted would be the final discharge of tax liability where the payment is made on account of services rendered to the Government or a local authority or a company or a registered firm or any foreign contractor or consultant or consortium. If the contract is not executed with any of the said entities, the tax is not deductible u/s 50(4) and would consequently, not constitute final discharge of tax liability of service provider.