Govt deducts tax on payment for goods, services

ISLAMABAD, Apr 27 (APP):Federal Minster of Finance, Revenue and Economic Affairs Dr Miftah Ismail on Friday said that the government has announced tax deductions under the existing law on payment for services exceeding Rs 10,000 and on goods exceeding Rs 25,000.
In his budget 2018-19 speech in the national assembly.
Miftah Ismail said that keeping in view the inflation over the years it was proposed that the threshold for tax deduction has been enhanced to Rs.30,000 on payment for services and to Rs.75,000 on payment for goods.
He said that currently tax credits were allowed under sections 65B, 65C, 65D and 65E for establishing a new industrial undertaking, purchase of machinery through equity and extension, expansion and BMR of machinery.
He said in order to give an impetus to investments the cut-off date for being eligible for these tax credits was proposed to be extended up to June 6,2021.