ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax rate on the amount paid for electricity bills by commercial, industrial and domestic consumers.
The FBR issued withholding tax card 2020-2021 (updated up to June 30, 2020) incorporating amendment made to Income Tax Ordinance, 2001 through Finance Act, 2020.
Under Section 235 of Income Tax Ordinance, 2001 person preparing electricity bill shall collect withholding tax from commercial and Industrial consumers of electricity along with payment of electricity consumption charges.
The withholding tax rates for gross amount of Electricity Bill of Commercial and Industrial consumer:
Does not exceed Rs. 400: Rs. 0
Exceeds Rs400 but does not exceed Rs600: Rs. 80
Exceeds Rs600 but does not exceed Rs800: Rs. 100
Exceeds Rs800 but does not exceed Rs1000: Rs. 160
Exceeds Rs1000 but does not exceed Rs1500: Rs. 300
Exceeds Rs1500 but does not exceed Rs3000: Rs. 350
Exceeds Rs3000 but does not exceed Rs4,500: Rs. 450
Exceeds Rs4500 but does not exceed Rs6000: Rs. 500
Exceeds Rs 6000 but does not exceed Rs. 10000: Rs. 650
Exceeds Rs. 10000 but does not exceed Rs15000: Rs1000
Exceeds Rs. 15000 but does not exceed Rs20000: Rs1500
Exceeds Rs. 20000: (i) at the rate of 12 percent for commercial consumers; and (ii) at the rate of 5 percent for industrial consumers
(i) Adjustable In case of company.
(ii) In case of other than company tax collected on Rs, 360000 amount of annual bill will be minimum tax.
(iii) in case other than company tax collected on amount over and above Rs 30000/- of monthly bill will be adjustable
(i) Minimum tax for CNG Stations (Ref S.234A) (3).
Under Section 235A of the Ordinance, person preparing electricity bill shall collect withholding tax from domestic consumers along with payment of electricity consumption charges.
Withholding tax rate on domestic consumers:
(i) if the amount of monthly bill is Rs,75,000/- or more: 7.5 percent
(ii) if the amount of monthly bill is less than Rs, 75,000: 0 percent