Practical Problems on TDS:

1. Distinguish between the concept of tax deducted at source and advance tax as per ITO 1984 with
example? Who are liable to pay advance tax?
2. OrasInvest Ltd is a private limited company. The company is engaged in contacting job with Grameen
Phone Ltd. (GP) for its network tower. In January 2009, OrasInvest got the following contract work
from Grameen Phone.
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Site number/Job
DHK S2005478
DHK D500258
NJ 5200598
CHT 528965
BR 5228965
RGP215487
BDR 2054879

Network Type
Rooftop
Rooftop
Greenfield
Greenfield
Greenfield
Greenfield
Rooftop

Amount in
USD
$ 3,000
$ 3,900
$ 10,000
$ 15,000
$ 8,000
$ 8,000
$ 5,000

The first work order was completed on 20 June 2009 and invoice raised to the GP on the same day.
Second work order was completed on 18 July 2009 and invoice raised on the same date. Accordingly
rest of the orders duly completed within 30 June 2010 except the last one which was completed on
August 2010 and invoices were yet to raise. All the invoices were honored duly after deducting
appropriate tax at source.
Required:
You are asked to calculate the TDS at the time of making payment by Grameen Phone Ltd. as per ITO
1984? [Assume $1=Tk 70]
3. Discuss the withholding requirement of the following heads by mentioning the withholding authority,
rate and limitations if any as per Eight Schedule of the ITP-1984:
i. Royalty or Technical know-how fees [Sec-52A(2)]
ii. Importer [Section-53 Rule-17A]
iii. Income from house property [u/s 53A & Rule-17B]
iv. Export or any goods except knitwear and woven garments, terry towel, jute
goods, frozen food, vegetables, leather goods, packed food [section 53BBBB]
v. Dividend [u/s-54]

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