in Foreign Exchange,
TAX ON EXPORT PROCEEDS
of Authorized Dealers is invited to F.E. Circulars No.60
and 62 of 1992 on the above subject.
We now enclose copies of Central
Board of Revenues Circular No.4(21)TP-I/92 dated
the 1st July, 1992 and its 'Annex'
containing details of items eligible for reduction in tax
at different rates. It is clarified that where rate of rebate
as per 'Annex' is 50%, the
with-holding tax will be deducted at 0.75% and where rebate
is 75%, the applicable tax rate will be 0.50%. In all other
cases where either rate of rebate is 25% or where no rebate
is available tax will be deducted at 1%.