VAT & SD Act 2012
Section 50 - Decreasing adjustment by the supplier after tax withheld at source
(as updated till Finance Ordinance 2025)
(1) If a tax is withheld at source‚ the registered person may‚ in the prescribed manner‚ make a decreasing adjustment of an amount equal to the amount of money withheld at source.
1[(2) The adjustment shall be made in the tax period in which period the payment is made against a supply or 2[within the next six tax periods] after such tax period and a claim for such adjustment after such period shall be time-barred.]
3[(3) The supplier shall not make decreasing adjustment without receipt of withholding certificate from the withholding entity.]
1 Section 50(2) was substituted by section 48 of the Finance Act, 2021 (Act No. 11 of 2021) with effect from 01 July 2021.
2 The figure, brackets and words “6 (six)” were substituted by section 9 of the Finance Ordinance, 2025 (Ordinance No. 28 of 2025) for the number, brackets and words “3 (three)”.
3 Section 50(3) was substituted by section 64 of the Finance Act, 2020 (Act No. 09 of 2020) with effect from 01 July 2020.
Disclaimer: This is the authentic English text of The Value Added Tax and Supplementary Duty Act 2012, as published under SRO No. 440-Law/2025/326-Mushak dated 05 November 2025. In the event of any inconsistency or conflict between the content on this website and the official Government publications or gazette notifications relating to laws, rules, regulations or SROs, the official Government publications and notifications shall prevail.