Payments for goods and services

Section 153

In sub section 6 the second proviso was substituted and there after following new sub clause shall be inserted namely:-

(iii) the rendering of or providing of services referred to in sub clause (b) of sub-section (1):

"Provided that tax deducted under sub-clause (b) of sub-section (1) of section 153 shall be minimum tax".

Rendering Service or Service Provider are now Required to file Return of Income instead of statement of Final Taxation. According to section 114 the Return of Income shall be accompanied by annexures, statements or documents which include Financial Statements of Accounts comprising of Trading, Profit & Loss Account, Balance Sheet, Wealth Statement and Reconciliation Statement of Wealth.

Section 153 was further amended by including clause (cc) in sub – section (9)whereby a non – profit organization is now included in the list of "PRECRIBED Persons" and are now legally required to withhold tax before making payment.

Further the definition of Manufacturer has been amended by deleting the packing or repacking from the definition of Manufacturer.Consequently a tax payer engaged in Packing or Re-packing business shall suffer taxes withheld as "Final Tax" instead of "Advance Tax".