ISLAMABAD, Nov 15: The Central Board of Revenue (CBR) has authorized exporters to deduct withholding tax on export of services. The decision was notified through an income tax circular issued on Tuesday.

It was clarified that the exporter to whom services notified through SRO946 of 2005 are rendered or provided would be responsible for the purposes of deduction of tax.

The 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.