Taxation

with focus on tax education

Advance Tax Paid to a Collection Agent - Imports (Section 148)
Monday, June 28, 2010

Collection Authority: Collector of Customs
Applicable Rate: 4% (in most cases)
Time of Collection: in the same manner and at the same time as the customs-duty payable in respect of the import
Final Tax / Normal: Final tax on the income of the importer arising from the imports except in the case of import-

(a) raw material, plant, machinery, equipment and parts by an industrial undertaking for its own use;
(b) fertilizer by manufacturer of fertilizer; and
(c) motor vehicles in CBU condition by manufacturer of motor vehicles
(d) large import houses, who,-

Large Import House means concern

(i) have paid-up capital of exceeding Rs.250 million;
(ii) have imports exceeding Rs.500 million during the tax year;
(iii) own total assets exceeding Rs.350 million at the close of the tax year;
(iv) is single object company;
(v) maintain computerized records of imports and sale of goods;
(vi) maintain a system for issuance of 100% cash receipts on sales;
(vii) present accounts for tax audit every year;
(viii) is registered with Sales Tax Department; and
(ix) make sales of industrial raw material of manufacturer registered for sales tax purposes.

Labels: advance income tax, Imports, Section 148, Withholding Tax