Tax on ptcl bill

20 posts in this topic

Posted

I want to know how is FED (VAT mode) and W.H. Tax are calculated ?

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Posted (edited)

--

Edited by Ahmed Talal

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Posted (edited)

Study taxation.

I'm not a economics student :(

Anybody with a more reasonable answer ?

And which quantites are taken in account for these taxes ?

Edited by yousaf465

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Posted

Today I submitted the bill of 1,320/= Rs . LineRent was 174,Local call charges are 87,Mobile charges 115,brodband charges 849.SUm up equals to 1225Rs. Whats this FED 73Rs & W.H tax 30.Rs charge for? In total 103Rs fazul mei :@

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Posted

Today I submitted the bill of 1,320/= Rs . LineRent was 174,Local call charges are 87,Mobile charges 115,brodband charges 849.SUm up equals to 1225Rs. Whats this FED 73Rs & W.H tax 30.Rs charge for? In total 103Rs fazul mei :@

There is no tax on Internet charges. FED 19% on Line Rent,Local Call charges and mobile call charges. No FED on Internet.

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Posted

Yes Internet Services, whether dial up or Broadband are exempt from FED under Federal Excise Act. The rate of FED on other telecommunication services is 19.5%. The FED is calculated on your total bill including line rent i.e.

(Line Rent + CLI + Package Charges (e.g. Pakistan Package) + Local Call Charges + Mobile Call Charges + Overseas Call Charges)*19.5%

The Withholding tax is the Income tax under "at source deduction" mode (just like tax on cell phone cards) and it is adjustable against your total tax payable for the tax year when you are filing your return. The rate of withholding tax is 10% of the amount exceeding Rs. 1,000. This is calculated as:

(Amount of Bill - Rs. 1,000) x 10% = Your withholding tax

So if my bill is 1,671 (excluding sales tax), my WH tax will be

1,671 - 1,000 = 671

671 x 10% = Rs. 67

Of course if the bill is below Rs. 1,000 there would be no Withholding tax. Some objections were raised in the press regarding this tax charging method as the line rent already includes a portion of tax. The line rent is actually Rs. 150 with 15% being sales tax as per old tax rates), so it was argued that PTCL was charging tax on tax. But PTCL replied that the new line rent itself is Rs. 174 so there is no tax on tax. :)

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Posted (edited)

Thanks rnathbatra and mfa6464 for the detailed explanation I was just looking for this. :)

So if my bill is like 2545 of which 2000 is Internent then my taxes will be like this:

F.E.D 545 x (19%) = 103.55

W.h. 2 545 - 1 000 = 1 545

1545 x (10%) = 154.5

So doesn't this W.H tax apply to the Internet. :|

Edited by yousaf465

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Posted

^ Yousaf. I will have to confirm this from my tax notes. But I do think that WH Tax is applicable on the total amount of the bill including Internet Charges, so the calculation you gave above seems correct.

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Posted (edited)

They used to say that there will be no with holding tax on internet charges.Why are they charging now?There should be no withholding tax.. the increase in amount is because of internet charges which goes above 1000Rs.Its so damn confusing.

Edited by koder

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Posted

people using 6, 8 & 10m must be paying darn hefty taxes :/

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Posted

^ Yousaf. I will have to confirm this from my tax notes. But I do think that WH Tax is applicable on the total amount of the bill including Internet Charges, so the calculation you gave above seems correct.

So it means there is this tax on Internet charges.

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Posted (edited)

^ Yeah exactly.. That's why they made it so confusing ehh

My ptcl 21-01-2010 bill was 1,180 Rs on which the W.H tax was 17Rs with 53Rs FED tax and on recent bill 22-12-2010 which is 1,320Rs there is 30Rs wealth tax with 73 RS FED tax.. there is increase in wealth tax..

Edited by koder

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Posted (edited)

you w.h for 22-12-2010 should have been

1320 - 1000 = 320 * (10%) = 32

So are you saying, previously you didn't had Ptcl Broadband; now you do have.

Edited by yousaf465

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Posted

Nope I was having it..whatever it is but they should add this WH tax on call charges ..not on internet charges which exceeds it above 1000rs.

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Posted

@ Koder. Yeah this is evidence of the fact that they are charging W.H Tax on amounts above Rs. 1,000 including the internet charges. By the way, there is no wealth tax on ptcl bill, why there is one in your bill?

Quote:

"on recent bill 22-12-2010 which is 1,320Rs there is 30Rs wealth tax with 73 RS FED tax"

I think the 1 or 2 rupees difference in WH Tax is due to the adjustment that the bill is rounded to the nearest 10 rupees.

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Posted

What i figured out is they also include the FED tax for calculating WH tax.

e.g PTCL dues current = 2275

Fed (VAT mode) current = 106

W.H tax current = 138

Which should have been 2275-1000= 1275

W.H tax current 1 275 * (10%) = 127.5

Or incase round off to nearest 10 1 280 * (10%) = 128

Actually it calculated like this 1 275 + 106 = 1 381

Actual W.h 1 381 * (10%) = 138.1 aprrox to 138.00

SO isn't it double tax ?

How can I calculate the actual tax on Internet only ?

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Posted

Oh well digging out old topic.Whats the With holding tax now a days? FED is 19.5% ..with holding tax is no more 10 % right?Its above 11.5 % i guess

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Posted

When there is no tax on data services, why does PTCL calculate tax on WHOLE of the _____ bill? Pack of ___ & _____.

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Posted

Yeah man taxes and taxes.. service is equal to nothing but one has to pay their bloody taxes.Thats good that the tax isn't on internet charges.

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Posted (edited)

i also want to share one thing about PTCL here I dont have PTCL phone line cable from PTCL pole to my home and still PTCL is asking me to pay bills of RS: 3490 is not it funny ?

Edited by Alaziz Online

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