The definition of information technology (IT) and IT-enabled services has been broadened by the Federal Board of Revenue (FBR).
The board also amended the Finance Bill 2022 to lower the turnover tax for Oil Marketing Companies (OMCs) from 0.75 percent to 0.5 percent.
The IT Services and IT-enabled Services Clauses (30AD) and (30AE) of the modified Finance Bill 2022 describe IT services to encompass software development, software maintenance, system integration, web design, web development, and web hosting, and network design.
Inbound or outbound call centres, medical transcription, remote monitoring, graphics design, accounting services, human resource (HR) services, telemedicine facilities, data entry operations, cloud computing services, data storage services, locally produced television programs, and the processing of insurance claims are all included in the list of IT-enabled services.
The modified law now stipulates that the term “IT” and “IT-enabled services” should not be confined to the services listed above. This implies that any further comparable services will likewise be regarded as being under the scope of IT and IT-enabled Services.
The deduction of taxes at various rates on various items is allowed under Section 148. Additionally, Section 148 stipulates that the taxes that industrial enterprises are obligated to deduct at rates of 1 percent and 2 percent must be adjustable.
The bill proposes that the tax that industrial undertakings are obligated to collect under Section 148 be modifiable regardless of the rate at which such collection is necessary.
To read our blog on “The FBR lowers the vehicle CVT under the amended Finance Bill 2022,” click here
