153. Payments for goods, services and contracts.— (1) Every prescribed person making a payment in full or part including a payment by way of advance to a resident person

(b) for the rendering of or providing of services 5 [except where payment is less than thirty thousand Rupees in aggregate, during a financial year];

Division III Payments for Goods or Services

(2) The rate of tax to be deducted from a payment referred to in clause (b) of sub-section (1) of section 153 shall be —

(i) 3% of the gross amount payable, in the cases of transport services, freight forwarding services, air cargo services, courier services, hotel services, security guard services, software development services, IT services and IT enabled services as defined in section 2, tracking services, advertising services (other than by print or electronic media), share registrar services, engineering services including architectural services, warehousing services, services rendered by asset management companies……….

Explanation:—The tax rate under this subparagraph shall be applicable only to a service provider whose services are subjected to withholding tax on gross receipts and the service provider has not agitated taxation of gross receipts before any court of law

Sources:

2(i), Division III, under clause (b) of sub-section (1) of section 153, of the Income Tax Ordinance 

https://download1.fbr.gov.pk/Docs/20217141672549772IncomeTaxOrdinanceAmendedupto30.06.2021.pdf