Deduction / Payment of Tax Chapter- 23
(i) by remittance to the Government Treasury or deposit in an authorized branch of the State
Bank of Pakistan or the National Bank of Pakistan, within 7 days from the end of each
week ending on every Sunday. and
(ii) by remittance abroad to a non resident through State Bank or any other banking
Company prior to remitting abroad of the amount from which tax is to be deducted or
collected.- Failure to pay tax collected or deducted (Section 161):
Where a person fails to collect tax or deduct tax from a payment or having collected tax fails to pay
the tax to the Commissioner Inland Revenue as required, the person shall be personally liable to pay
the amount of tax to the Commissioner Inland Revenue who may pass an order to recover the same.
No recovery shall be made unless the person has been provided with an opportunity of being heard.
Where at the time of recovery of tax the tax that was to be deducted or collected has been paid by
that person, no recovery shall be made from the person who had failed to collect or deduct the tax but
the said person shall be liable to pay default surcharge @ 1 2 % p. a. from the date he failed to
collect or deduct the tax to the date the tax was paid.
A person personally liable for an amount of tax as a result of failing to collect or deduct the tax shall
be entitled to recover the tax from the person from whom the tax should have been collected or
deducted.
The Commissioner may, after making, or causing to be made, such enquiries as he deems
necessary, amend or further amend an order of recovery under sub-section (1), if he considers that
the order is erroneous in so far it is prejudicial to the interest of revenue.
Provided that the order of recovery shall not be amended, unless the person referred to in
sub-section (1) has been provided an opportunity of being heard.- Default Surcharge (Section 205)
Where a person fails to pay any tax (excluding advance tax u/s 147), any penalty or any tax
due from persons holding money on behalf of a taxpayer or a liquidator, any tax u/s 160 on or
before the due date, the said person shall be liable to pay default surcharge @ 1 2 % from the
date the aforesaid amounts are due and ending on the date on which it was paid.
Where a person fails to pay advance tax u/s 147, on or before the due date, the said person
shall be liable to pay default surcharge @ 1 2 % from the date the amount was due and ending
on the date on which it was paid.
Where a person fails to pay advance tax u/s 147(4A) and (6) or the tax so paid is less than 90%
of the tax chargeable for the relevant tax year, the said person shall be liable to pay default
surcharge @ 1 2 % from the first day of April in that year to the date on which assessment
is made or the thirtieth June of the financial year next following, whichever is earlier.
Provided that in the case of person having a special tax year, the default surcharge shall be
calculated on and from the first day of the fourth quarter of the special tax year till the date on which
assessment is made or the last day of special tax year, whichever is earlier.Provided that if the person opts to pay the tax due on the basis of an order under section 129 on
or before the due date given in the notice u/s 137(2) issued in consequence of the said order, and
does not file an appeal u/s 131, he shall not be liable to pay default surcharge for the period
beginning from the due date of payment in consequence of an order appealed against to the date of
payment in consequence of notice u/s 137(2).Provided that if the person opts to pay the tax due on the basis of an order u/s 129 on or before
the due date given in the notice under section 137(2) issued in consequence of the said order and
does not file an appeal u/s 131, he shall not be liable to pay default surcharge for the period
beginning from the date of order u/s 161 to the date of payment.Where a person is liable for default surcharge under this Part, the Commissioner may, at his
discretion, make assessment of default surcharge for the period of default or part thereof,
notwithstanding that the tax due has not actually been paid.