Published on March 17th, 2011 | by Arsalan Mir1
With-Holding Tax Increment – WHT Now 11.5% for Telecom Services
In a move to impose flood surcharge of 15 percent on payable income tax as per President’s Ordinance (income tax amendment 2011), withholding tax (WHT) on prepaid recharge and postpaid bill payment has increased from 10% to 11.5%.
The WHT for telecom services is in addition to 19.5% Federal Excise Duty (FED). And for prepaid users another 5% accounts for services charges.
For the purpose of clarification, the WHT is charged on the face-value of prepaid voucher. The service charges are also on face-value.
WHT is Rs. 11.5
Service charges are Rs. 5
So on Rs.100 prepaid voucher user get Rs. 83.5 after tax and service charges deduction while FED is charged as per usage of this amount.
This additional 15% surcharge on WHT is implemented till 30th June, 2011 or in other words till end of this Financial Year.