Withholding tax is a method of collecting income tax in advance from the recipient's income through the payer. It is commonly applied to salary income under section 149, and to sales of goods, services, and transportation under section 153. When opening a supplier account, details like NTN/CNIC number, company/individual status, and any applicable exemption certificates should be collected. Withholding taxpayers must file monthly and annual returns and undergo a yearly audit.

1. Accounting Skill Session
WITHHOLDING TAX
It is not an internal revenue tax but a mode of collecting income tax in
advance on income of the recipient of income thru the payer of income.
Generally Use:
 u/s 149 WH tax on Salary.
 u/s 153 WH tax on sales of Goods.
 u/s 153 WH tax on Service.
 u/s 153 WH tax on Transportation.
 On Export Proceed.
 Withholding tax on Cash Withdrawal.
Supplier Account Opening
 NTN/CNIC number.
 Check filler or non filler.
 Company or individual.
 Ask for exemption certificate if claim.
 Check for exemption if available for particulars supplies
(import)
 Monthly Return
 Annual Return.
 WH Tax yearly Audit