ISLAMABAD, Sept 13: The Central Board of Revenue has notified the concessional rate of withholding tax for the export of services. The decision was notified through an income tax notification SRO946 of 2005 issued here on Tuesday.
Theses provided to exporters and export houses by various enterprises were not presently treated as deemed export. The decision was taken in the Trade Policy 2005-06 to allow it for concessional withholding tax.
According to the notification, in the aforesaid schedule, in Part II, after clause (24), the following new clause shall be added, namely: 25 — services of stitching, dying, printing, embroidery and washing rendered or provided to an exporter or an export house shall be treated as export and chargeable to tax at the rate equal to the rate of tax applicable to the exporter on export of goods to which such services relate as specified in Division IV of Part III of the First Schedule of the income tax.
