Withholding Tax – Part II

[vc_empty_space height="20px"] Introduction [vc_empty_space height="10px"] Withholding Tax is the tax under which tax deducted or collected at source is treated as a minimum tax for such transaction. [vc_empty_space height="10px"] This tax becomes final tax when withholding tax is higher than normal tax, otherwise, adjustable in normal tax. [vc_empty_space height="20px"] Withholding Tax on Supply of goods by a resident person – Section 153, Division III Part III 1st Schedule [vc_empty_space height="10px"] Withholding tax on the supply of goods is applicable as follows: [vc_empty_space height="10px"] Applicable Section Nature Filer Non-Filer Other Goods u/s 153(1)(a)/30 Association of Persons (AOP) 5.50% 11.00% Other Goods u/s 153(1)(a)/30 Individuals 5.50% 11.00% Other Goods u/s 153(1)(a)/29 Company 5.00% 10.00% Fast Moving Goods u/s 153(1)(a)/28 Association of Persons (AOP) 0.25% 0.50% Fast Moving Goods u/s 153(1)(a)/28 Individuals 0.25% 0.50% Fast Moving Goods u/s...

04 July 2023

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Withholding Tax – Part I

Posted by Ali Murtaza

in All Articles, Taxation

[vc_empty_space height="20px"] Introduction [vc_empty_space height="10px"] Withholding is the tax under which tax deducted or collected at source is treated as a minimum tax for such transaction. [vc_empty_space height="10px"] This tax becomes final tax when withholding tax is higher than normal tax, otherwise, adjustable in normal tax. [vc_empty_space height="20px"] Withholding Tax deducted on services – Section 153 Division III (2) Part III 1st Schedule [vc_empty_space height="10px"] Prescribed Services – Section 153(1) b: [vc_empty_space height="10px"] The tax on gross amount including sales tax shall be deducted according to the below table for the following prescribed services; [vc_empty_space height="10px"] List of Prescribed Services Transport Services Freight and forwarding services Air Cargo Services Courier Services Manpower Outsourcing ...

09 June 2023

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Prudential Regulations 8 Classification & Provisioning

Posted by Ali Murtaza

in All Articles, State Bank Regulations

Prudential Regulations PR-8 Classification & Provisions

Listen The Article Your browser does not support the audio element. [vc_empty_space height="20px"] Introduction: [vc_empty_space height="10px"] Prudential regulations play a crucial role in maintaining the stability and soundness of the banking sector. Among these regulations, Prudential Regulation PR-8 stands as a fundamental framework for the classification and provisioning of assets within banks and development financial institutions (DFIs). [vc_empty_space height="10px"] PR-8 provides guidelines and criteria for the proper assessment, classification, and provisioning of loans, investments, and other assets, ensuring accurate risk evaluation and financial reporting. [vc_empty_space height="10px"] Loans/Advances: [vc_empty_space height="10px"] a) Banks/DFIs must follow the prudential guidelines outlined in Annexure-V when classifying their asset portfolio and making provisions based on time criteria. [vc_empty_space...

29 May 2023

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Prudential Regulations Banks – Guarantees

Posted by Ali Murtaza

in All Articles, State Bank Regulations

[vc_empty_space height="20px"] Introduction: [vc_empty_space height="10px"] The prudential regulations R-7 issued by the State Bank of Pakistan (SBP) play a crucial role in governing the issuance of banks and Development Financial Institutions (DFIs) guarantees. [vc_empty_space height="10px"] These regulations provide a framework for ensuring the soundness, security, and proper risk management associated with guarantees, performance bonds, and counter-guarantees. [vc_empty_space height="10px"] By establishing guidelines on collateral, rating requirements, evaluation procedures, and reporting obligations, the SBP aims to safeguard the interests of all stakeholders involved in guarantee transactions. [vc_empty_space height="10px"] The prudential regulations R-7 serve as a cornerstone for promoting transparency, reliability, and confidence in the guarantee mechanisms within the financial sector, ultimately...

25 May 2023

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Prudential Regulations Banks – Part III

Posted by Ali Murtaza

in All Articles, State Bank Regulations

[vc_empty_space height="20px"] Introduction: [vc_empty_space height="10px"] Prudential Regulations play a crucial role in regulating and ensuring the stability of commercial banks in Pakistan. These regulations, set forth by the State Bank of Pakistan, establish guidelines and standards for various aspects of banking operations, including risk management, exposure limits, financial analysis, and security requirements. Adhering to these regulations is vital for banks to maintain a sound and secure financial system. [vc_empty_space height="10px"] In this article, we will explore the key provisions of the Prudential Regulations imposed by the State Bank of Pakistan on commercial banks, highlighting Monitoring of collaterals , joint inspection of pledge stock and exposure...

19 May 2023

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Prudential Regulations Banks – Part II

Posted by Ali Murtaza

in All Articles, State Bank Regulations

Prudential Regulations Commercial Banks – Part II

[vc_empty_space height="20px"] Introduction: [vc_empty_space height="10px"] Prudential Regulations play a crucial role in regulating and ensuring the stability of commercial banks in Pakistan. These regulations, set forth by the State Bank of Pakistan, establish guidelines and standards for various aspects of banking operations, including risk management, exposure limits, financial analysis, and security requirements. Adhering to these regulations is vital for banks to maintain a sound and secure financial system. [vc_empty_space height="10px"] In this article, we will explore the key provisions of the Prudential Regulations imposed by the State Bank of Pakistan on commercial banks, highlighting their significance and impact on the banking industry. Stay tuned to...