Updated: Thursday October 06, 2016/AlKhamis
Muharram 05, 1438/Bruhaspathivara
Asvina 14, 1938, at 12:22:14 AM
The Finance Act, 2011
ACT No. XVI OF 2011
An Act to give effect to the financial
proposals of the Federal Government for the year beginning on the first day of
July, 2011 and to amend certain laws.
WHEREAS it is expedient to make
provisions to give effect to the financial proposals of the Federal Government
for the year beginning on the first day of July 2011 and to amend certain laws
for the purposes hereinafter appearing;
It is hereby enacted as follows:---
1. Short title, extent and
commencement.___
(1) This Act may he called the
Finance Act, 2011.
(2) It extends to the whole of
(3) It shall, unless otherwise
provided, come into forte on the first day of July, 2011.
2. Amendments of Act IV, 1969.—In the Customs Act, 1969 (IV of 1969), the following
amendments shall be made, namely:---
(1) in
section 15, in clause (c), the comma, words and figure “or goods imported or
exported in contravention of the provisions of section 32” shall be omitted;
(2) in
section 21, in clause (c), after the word and comma “exportation.” the words
and comma “or for supplies against international tenders.” shall he inserted:
(3) in
section 22, in the proviso, the words “or Deputy Collector” shall he omitted:
(4) in
section 32, in sub-section (3A), for the word “three”, the word “five” shall be
substituted;
(5) in
section 33, after sub-section (2) the following new sub-section shall be added,
namely:—
“(3) In the case where refund has
become due in consequence of any decision or judgment by any appropriate
officer of Customs or the Board or the Appellate Tribunal or the Court, the
said period of one year shall be reckoned from the date of such decision or
judgment, as the case may be.” ;
(6) in
section 34, the words “or Deputy Collector” shall be omitted:
(7) in
section 96, in sub-section (1), the words “or Deputy Collector” shall be
omitted;
(8) after
section 129, the following new section shall be inserted, namely:---
“I29A. Levy of transit fee.-A transit fee may be levied on any goods or class of
goods in transit across Pakistan to a foreign territory at such rates as the
Board may, by notification in the official Gazette, prescribe.”; and
(9) the
amendments set out in the Schedule to this Act shall be made in the First
Schedule to the Customs Act, 1969 (IV of 1969).
3. Amendment of Act XXVII of 1974.___In
the Members of Parliament (Salaries and Allowances) Act, 1974 (XXVII of 1974)
the following further amendments shall be made namely:---
In section 12, the existing provision shall be
renumbered as sub-section (1) thereof and after sub-section (1), re-numbered as
aforesaid, the following new sub-section shall be added, namely:—
“(2) An ex-member who remained a member of either
House of Parliament for at least one term shall also be entitled to such
facilities as are notified from time to time and also to medical facilities as
are admissible to a sitting member under sub-section (1).”
4. Amendment of Act V, 1989.-In the Finance Act, 1989 (V of 1989). in section
7,---
(1) in
sub-section (1), after the word “thereof”, the words, figures, commas and
brackets “or purchase of modaraba certificate or a registered instrument of
redeemable capital as defined in the Companies Ordinance. 1984 ( XLV II of
1984), or shares of a public company, listed on a registered stock exchange in
Pakistan by a resident person defined in section 81 of the Income Tax
Ordinance, 2001 (XLIX of 2001), such as is specified in sub-section (2), at the
rates specified in that sub-section” shall be omitted; and
(2) in
sub-section (4), the second proviso shall he omitted.
5. Amendments of' the Sales Tax Act,
1990.___In the Sales Tax Act, 1990, the following further
amendments shall be made, namely:—
(1) in
section 3, for the word “seventeen”, the word “sixteen” shall be substituted;
provided, in case of imports, such substitution shall he deemed to have been
made on 20th June. 2011;
(2) in
section 8B, in sub-section (1), for the first proviso, the following shall be
substituted, namely:-
“Provided that the restriction on the adjustment of
input tax in excess of ninety per cent of the output tax shall not apply in
case of fixed assets or capital goods:”:
(3) in
section 21,—
(a) after
sub-section (2), the following new sub-section (3) shall be added, namely:—
“(3) During the period of suspension of registration,
the invoices issued by such person shall not be entertained for the purposes of
sales tax refund or input tax credit and once such person is blacklisted, the
refund or input tax credit claimed against the invoices issued by him whether
prior or after such blacklisting shall unless the registered buyer has
fulfilled his responsibilities tinder section 73 be rejected through a self-speaking
appealable order and after affording an opportunity of being heard to such
person.”;
(4) in
section 26, in sub-section (3), after the brackets and figure “(2)” the words.
letters figure and brackets “or under clause (a) or clause (b) of section 27”
shall be inserted;
(5) in
section 30,—
(a)
in-sub-section (1),—
(i) in
clause (i), the word “and” shall be omitted; and
(ii) after
clause (i), the following new clause shall he inserted namely:—
“(ia) an
Inspector Inland Revenue: and”;
(b) in
sub-section (3), after the word “Officer” occurring for the second time, the
comma and words “. Inspector Inland Revenue” shall be inserted: and
(c) in
sub-section (4), after the word “Officer”, occurring for the second time, the
comma and words “, Inspector Inland Revenue,” shall be inserted;
(6) in
section 30A, in the heading and in this section wherever occurring, for the
letters “CBR”, the words “Inland Revenue” shall be substituted:
(7) in
section 38B, in sub-section (1), for the words “a Deputy”, the words “ an
Assistant” shall be substituted:
(8) in
section 47A, for sub-section (4A), the following shall be substituted. namely:—
“(4A)
Notwithstanding anything contained in sub-section (4), the Chairman FBR and a
Member nominated by him may, on the application of an aggrieved person, for
reasons to he recorded in writing, and on being satisfied that there is an
error in order or decision, pass such order as may be deemed just and
equitable.”.
(9) in
section 66, in the third proviso, for the full stop, at the end, a colon shall
be substituted and thereafter the following new proviso shall be added,
namely:—
“Provided also that no refund shall be
admissible under this section if incidence of tax has been passed directly or
indirectly to the consumer.”;
(10) in section
74, after the proviso, the following explanation shall be added, namely:—
“Explanation—For the purpose of this
section, the expression “any act or thing is to be done” includes any act or
thing to be done by the registered person or by the authorities specified in
section 30 of this Act.”; and
(11) in the
Sixth Schedule,___
(a) in
Table-1, in column (1) serial numbers 29A, 29B, 30, 34, 35, 41, 42, 43, 44, 62,
64, 65, 66, 67, 68, 69 and 70 and the corresponding entries relating thereto in
columns (2) and (3) shall be omitted: and
(b) In
Table-II, in column (1) serial number 5 and the corresponding entries relating
thereto in columns (2) and (3) shall be omitted.
6. Amendment of Ordinance XLIX,
2001.—In the Income Tax Ordinance,
2001 (X LIX of 2001), the following further amendments shall he made namely:—
(1) in
section 2,—
(a) in
clause (5) after the word “includes”, the words and comma “provisional
assessment,” shall be inserted: and
(b) after
clause (11B) the following new clause shall be added namely:—
“(11C) “Collective Investment Scheme” shall have the
same meanings as are assigned under the Non-Banking Finance Companies
(Establishment and Regulation) Rules, 2003;”:
(2) in
section 18, in sub-section (I), in clause (d), for the semicolon and word “;
and”, a full stop shall be substituted and thereafter the following Explanation
shall be added, namely:—
“Explanation.—For the purposes of this
clause, it is declared that the word 'benefit' includes any benefit derived by
way of waiver of profit on debt or the debt itself under the State Bank of
Pakistan. Banking Policy Department's Circular No.29 of 2002 or in any other
scheme issued by the State Bank of
(3) in
section 28. in sub-section (I), in clause (g). for the word “Corporation”, the
letters and word “SME Bank” shall be substituted;
(4) for
section 62. the following shall be substituted, namely:—
“62. Tax credit for investment in shares and
insurance.—(1) A resident person
other than a company shall be entitled to a tax credit for a tax year either—
(i) in
respect of the cost of acquiring in the year new shares offered to the public
by a public company listed on a stock exchange in Pakistan, provided the
resident person is the original allottee of the shares or the shares are
acquired from the Privatization Commission of Pakistan; or
(ii) in
respect of any life insurance premium paid on a policy to a life insurance company
registered by the Securities and Exchange Commission of
(2) The
amount of a person's tax credit allowed under sub-section (1) for a tax year
shall be computed according to the following formula, namely:—
(A/B) x C
where—
A is the
amount of tax assessed to the person for the tax year before allowance of any
tax credit under this Part;
B is the
person's taxable income for the tax year; and
C is the
lesser of —
(a) the
total cost of acquiring the shares, or the total contribution or premium paid
by the person referred to in sub-section (I) in the year:
(b) fifteen
per cent of the person's taxable income for the year: or
(c) five
hundred thousand rupees.
(3) Where –
(a) a person
has been allowed a tax credit under sub-section (1) in a tax year in respect of
the purchase of a share; and
(b) the
person has made a disposal of the share within thirty six months of the date of
acquisition, the amount of tax payable by the person for the tax year in which
the shares were disposed of shall be increased by the amount of the credit
allowed.”:
(5) in section 63. in sub-section (2),
in definition 'C'.—
“62. Tax credit for
investment in shares and insurance.—(1)
A resident person other than a company shall be entitled to a tax credit for a
tax year either—
(i) in
respect of the cost of acquiring in the year new shares offered to the public
by a public company listed on a stock exchange in Pakistan, provided the
resident person is the original allottee of the shares or the shares are
acquired from the Privatization Commission of Pakistan; or
(ii) in
respect of any life insurance premium paid on a policy to a life insurance
company registered by the Securities and Exchange Commission of
(2) The amount of a person's tax credit
allowed under sub-section (1) for a tax year shall be computed according to the
following formula, namely:—
(A/R) x C
where—
A is the
amount of tax assessed to the person for the tax year before allowance of any
tax credit under this Part;
B is the
person's taxable income for the tax year; and
C is the
lesser of —
(a) the
total cost of acquiring the shares, or the total contribution or premium paid
by the person referred to in sub-section (I) in the year:
(b) fifteen
per cent of the person's taxable income for the year: or
(c) five
hundred thousand rupees.
(3) Where –
(a) a person
has been allowed a tax credit under sub-section ( in a tax year in respect of
the purchase of a share; and
(b) the
person has made a disposal of the share within thirty six months of the date of
acquisition, the amount of tax payable by the person for the tax year in which
the shares were disposed of shall be increased by the amount of the credit
allowed.”:
(5) in section 63. in sub-section (2),
in definition 'C'.—
(a) in clause (ii), for the semicolon and word “: or”, a
full stop shall he substituted; and
(b) clause
(iii) shall be omitted;
(6) in section 65C, in sub-section (1),
for the word “five”, the word, “fifteen” shall be substituted:
(7) after section 65C, the following
new sections shall be inserted. namely:—
“65D. Tax credit for newly established industrial
undertakings.—(1) Where a taxpayer
being a company formed for establishing and operating a new industrial
undertaking for manufacturing in Pakistan sets up a new industrial undertaking,
it shall be given a tax credit equal to hundred per cent of the tax payable on
the taxable income arising from such industrial undertaking for a period of five
years beginning from the date of setting up or commencement of commercial
production, whichever is later.
(2) Tax credit under this section shall
be admissible where—
(a) the
company is incorporated and industrial undertaking is setup between the first day
of July, 2011 and 30th day of June.2016;
(b)
industrial undertaking is managed by a company formed for operating the said
industrial undertaking and registered under the Companies Ordinance. 1984
(XLVII of 1984) and having its registered office in
(c) the
industrial undertaking is not established by the splitting up or reconstruction
or reconstitution of an undertaking already in existence or by transfer of
machinery or plant from an industrial undertaking established in Pakistan at
any time before 1st July 2011; and
(d) the
industrial undertaking is set up with hundred per cent equity owned by the
company.
(3) The amount of credit admissible
under this section shall be deducted from the tax payable by the taxpayer in
respect of the tax year in which the plant or machinery referred in sub-section
(1) is purchased and installed.
(4) Where any credit is allowed under
this section and subsequently it is discovered, on the basis of documents or
otherwise, by the Commissioner inland Revenue that any of the condition
specified in this section was not fulfilled, the credit originally allowed
shall be deemed to have been wrongly allowed and the Commissioner inland
Revenue may. notwithstanding anything contained in this Ordinance, re-compute
the tax payable by the taxpayer for the relevant year and the provisions of
this Ordinance shall, so far as may he, apply accordingly.
65E. Tax credit for industrial
undertakings established before the first day of July, 2011.—(1) Where a taxpayer being a company invests any
amount, with hundred per cent equity investment, in the purchase and
installation of plant and machinery for the purposes of balancing,
modernization, replacement. or for expansion of the plant and machinery already
installed in an industrial undertaking setup in Pakistan before the first day
of July 2011, a tax credit shall he allowed against the tax payable in the
manner provided hereinafter, in the same proportion, which exists between the
total investment and such equity investment made by the industrial undertaking.
(2) The provisions of sub-section (1)
shall apply if the plant and machinery is purchased and installed at any time
between the first day of July, 2011 and the 30th day of June. 2016.
(3) The amount of credit admissible
under this section shall he deducted from the tax payable by the taxpayer in
respect of the tax year in which the plant or machinery referred in sub-section
(I) is purchased and installed and for the subsequent four years.
(4) Where no tax is payable by the
taxpayer in respect of the tax year in which such plant or machinery is
installed, or where the tax payable is less than the amount of tax credit, the
amount of such credit or so much of it as is in excess thereof, shall be
carried forward and deducted from the tax payable by the taxpayer in respect of
he following tax year:
Provided that no such amount shall be
carried forward for more than four tax years:
Provided further that deduction made
under stub-section (1) and under this sub-section shall not exceed in aggregate
the limit of the tax credit specified in sub-section (1).
(5) Where any credit is allowed under
this section and subsequently it is discovered, on the basis of documents or
otherwise, by the Commissioner Inland Revenue that any of the condition
specified in this section was not fulfilled, the credit originally allowed
shall be deemed to have been wrongly allowed and the Commissioner Inland
Revenue may, notwithstanding anything contained in this Ordinance, re-compute
the tax payable by the taxpayer for the relevant year and the provisions of
this Ordinance shall apply accordingly.”:
(8) in section 111, in sub-section
(I),—
(a) in
clause (b), the word “or”, at the end, shall he omitted:
(b) in
clause (c), for the comma at the end, a semicolon and word “:or shall be
substituted;
(c) after clause (c), amended as aforesaid, the
following new clause shall be added, namely:—
“(d) any
person has concealed income or furnished inaccurate particulars of income
including—
(i) the
suppression of any production, sales or any amount chargeable to tax: or
(ii) the
suppression of any item of receipt liable to tax in whole or in part,”; and
(d) after
the word “made” occurring for the second time, the words and commas “suppression
of any production, sales, any amount chargeable to tax and of any item of
receipt liable to tax” and after the word “expenditure”, occurring for the
third time, the words and commas “suppressed amount of production, sales or any
amount chargeable to tax or of any item of receipt liable to tax” shall be
inserted.
(9) in section 113,—
(a) in
sub-section (2), in the proviso, for the word “three”, the word “five” shall be
substituted; and
(b) in
sub-section (3), in clause (a), after the word “the”, occurring for the first
time, the words “gross sales or” shall be inserted:
(10) in section 113B, in clause (b),
for the words, letters figure and comma “Chapter III of the Sales Tax Special
Procedure Rules. 2006”, the words, letters figure and comma “Chapter II of the
Sales Tax Special Procedures Rules, 2007”shall be substituted:
(11) in section 114,—
(a) in
sub-section (1),—
(i) in
clause (ab), after semicolon at the end, the word “or” shall be and
(ii) in
clause (ac), the word “and” at the end, shall be omitted:
(iii) in
clause (b),—
(a) in sub
clause (vi), the word “and”, at the end, shall be omitted:
(b) in
sub-clause (vii) for the full stop at the end, a semicolon and the word”; or”
shall be substituted: and
(c) after
sub-clause (vii), amended as aforesaid, the following shall be added, namely:—
“(viii) is
the holder of commercial or industrial connection of electricity where the
amount of annual bill exceeds rupees one million.”:
(b) after
sub-section (1) amended as aforesaid, the following shall be added, namely:—
“( IA) Even
individual whose income under the head “Income from business” exceeds rupees
three hundred thousand but does not exceed rupees three hundred and fifty
thousand in a tax year is also required to furnish return of income for the tax
year.”:
(c) in
sub-section (2),—
(i) in
clause (b) the word “and”, at the end, shall be omitted:
(ii) in
clause (c), for the full stop, at the end, a semi-colon shall be substituted:
and
(iii) after
clause (e), the following clauses shall he added, namely:—
(d) shall be
accompanied with evidence of payment of due tax as per return of income; and
(e) shall be
accompanied with a wealth statement as required under section 116 .”: and
(d) in
sub-section (6A),—
(i) for the
words “wishes to file”, the word “files” shall be substituted:
(ii) in
the first proviso for the words “wishes to deposit”, the word “deposits” shall
be substituted; and
(iii) in the
second proviso, for the words “wishes to revise”, the word “revises” shall be
substituted:
(12) in section 115. in
sub-section (4),—
(a) the
words, brackets, letters, comma and figure “clauses (a) (b) and (d) of
sub-section (1)” shall be omitted:
(b) for the
words brackets, letters and figures “clauses (a) and (c) of sub-section (1) of
section 153” the words, brackets, letters and figures “clauses (a),(c) and (d)
of sub-section (3) of section 153” shall be substituted; and
(c) the
words, brackets, letters and figures “clause (a) and (b) of sub-section ( I )
of section 233A” shall be omitted;
(a) in
sub-section (2),—
(i) after
the word “taxpayer”, the words and commas, “,being an individual,” shall he
inserted;
(ii) for the
word “five hundred thousand”, the word “one million” shall be substituted; and
(iii) for
the full stop, at the end, a colon shall he substituted and thereafter the
following proviso shall be added, namely:
“Provided
that every member of an association of persons whose share from the income of
such association of persons, before tax, for the year is one million rupees or
more shall also furnish wealth statement and wealth reconciliation statement
for the year alongwith return of income of the association.”; and
(b) for
sub-section (2A) the following shall be substituted, namely:—
“(2A) Where a person. being an individual or an
association of persons, files a return in response to a provisional assessment
order under section 122C. such return shall be accompanied by wealth statement
alongwith a wealth reconciliation statement and an explanation of source of
acquisition of assets specified therein in the case of an individual and wealth
statements of all members in the case of an association of persons and such
wealth statements shall be accompanied by wealth reconciliation statements and
explanation of source of acquisition of assets specified therein.”;
(14) in section I27, in sub-section
(1), after the word “person”, occurring for the fifth time, the words, figure,
letter and commas “,except a provisional assessment order under section 122C,”
shall be inserted:
(15) in section 130,—
(a) in
sub-section (8A), for the word “Chairman”, the word “Chairperson” shall be
substituted:
(b) in
sub-section (8AA),—
(i) for the
word “Chairman”, occurring twice the word “Chairperson” shall be substituted:
and
(ii) for the
word “five” the word “one” shall he substituted;
(16) in section 132, in sub-section
(2), the words and commas “may, if it deems fit, dismiss the appeal in default
or” shall be omitted;
(17) in section 137, in sub-section (2)
in the proviso,—
(a) after the word “assessment”, the word “order” shall
be inserted; and
(b) after
the word “payable”, occurring for the second time, the word “immediately” shall
be inserted;
(18) in section 147, in sub-section (5
B) in first proviso, for the word “seven”. the words “twenty-one” shall be
substituted;
(19) in section 151, in sub-section
(3), the words, brackets, letters, comma and figure “from transactions referred
to in clauses (a), (b) and (d) of sub-section (1)” shall be omitted:
(20) for section 153, the following
shall be substituted, namely:—
“153. Payments for goods, services and contracts.(1) Every prescribed person making a payment in full
or pan including a payment by way of advance to a resident person or permanent
establishment in Pakistan of a non-resident person—
(a) for the
sale of goods;
(b) for the
rendering of or providing of services;
(c) on the
execution of a contract, other than a contract for the sale of goods or the
rendering of or providing of services shall at the time of making the payment,
deduct tax from the gross amount payable (including sales tax, if any) at the
rate specified in Division III of Part III of the First Schedule.
(2) Every exporter or an export house making a payment
in full or part including a payment by way of advance to a resident person or
permanent establishment in Pakistan of a non-resident person for rendering of
or providing of services of stitching, dying, printing, embroidery, washing,
sizing and weaving, shall at the time of making the payment, deduct tax from
the gross amount payable at the rate specified in Division IV of Part III of
the First Schedule.
(3) The tax deducted under clauses (a) and (c) of
sub-section (1) and under sub-section (2) of this section, on the income of a
resident person or permanent establishment of a non-resident person shall he
final tax.
Provided that,—
(a) tax
deducted under clause (a) of sub-section (1) shall be adjustable where payments
are received on sale or supply of goods, by a,—
(i) company
being a manufacturer of such goods: or
(ii) public
company listed on a registered stock exchange in
(b) tax
deducted shall be a minimum tax on transactions referred to in clause (b) of
sub-section (1): and
(c) tax
deducted under clause (c) of sub-section (1) shall be adjustable if payments
are received by a public company listed on a registered stock exchange in
(4) The Commissioner may, on
application made by the recipient of a payment referred to in sub-section (1)
and after making such inquiry as the Commissioner thinks fit, may allow in
cases where tax deductible under sub-section (1) is adjustable, by an order in
writing, any person to make the payment.—
(a) without
deduction of tax: or
(b) deduction
of tax at a reduced rate.
(5) Sub-section (1) shall not apply to—
(a) a sale
of goods where the sale is made by the importer of the goods and tax under
section 148 in respect of such goods has been paid and the goods are sold in
the same condition as they were when imported;
(b) payments
made to traders of yarn by the taxpayers specified in the zero-rated regime of
sales tax (as provided under clause (45A) of Part-IV of the Second Schedule ):
(c) a refund
of any security deposit:
(d) a
payment made by the Federal Government a Provincial Government or a Local
Government to a contractor for construction materials supplied to the
contractor by the said Government or the authority:
(e) a cotton
ginner who deposits in the Government Treasury, an amount equal to the amount
of tax deductible on the payment being made to him and evidence to this effect
is provided to the “prescribed person”;
(f) the
purchase of an asset under a lease and buy back agreement by a modaraba, leasing
company, banking company or financial institution; or
(g) any
payment for securitization of receivables by a Special Purpose Vehicle to the
Originator.
(6) Where any tax is deducted by a
person making a payment for a Special Purpose Vehicle, on behalf of the
Originator, the tax is credited to the Originator.
(i)
''prescribed person” means—
(a) the
Federal Government;
(b) a
company
(c) an
association of persons constituted by, or under law;
(d)
non-profit organization;
(e) a foreign
contractor or consultant;
(f) a
consortium or joint venture;
(g) an
exporter or an export house for the purpose of sub-section (2);
(h) an
association of persons. having turnover of fifty million rupees or above in tax
year 2007 or in any subsequent tax year; or
(i) an
individual, having turnover of fifty million rupees or above in the tax year
2009 or in any subsequent year:
(ii) “services”
includes the services of accountants, architects, dentists, doctors, engineers,
interior decorators and lawyers otherwise than as an employee;
(iii) “sale
of goods” includes a sale of goods for cash or on credit, whether under written
contract or not:
(iv) “manufacturer”
means a person who is engaged in production or manufacturing of goods, which
includes
(a) any
process in which an article singly or in combination with other articles,
material, components, is either converted into another distinct article or
product is so changed, transferred, or reshaped that it becomes capable of
being put to use differently or distinctly; or
(b) a
process of assembling, mixing, cutting or preparation of goods in any other
manner; and
(v) “turnover”
means—
(a) the gross
sales or gross receipts, inclusive of sales tax and federal excise duty or any
trade discounts shown on invoices, or bills, derived from the sale of goods:
(b) the gross fees for the rendering of services for
giving benefits including commissions:
(c) the
gross receipts from the execution of contracts; and
(d) the
company's share of the amounts stated above of any association of persons of
which the company is a member”;
(21) in section 156B, in sub-section
(1), in clause (b), for the figure and sign “25%”, the words “fifty per cent”
shall be substituted:
(22) in section 165,—
(a) in
sub-section (1),—
(i) after
the word. “a”, occurring for the second time, the word “monthly” shall be
inserted;
(ii) in
clause (a), after the word “name” the words and comma “Computerized National
Identity Card Number, National Tax Number” shall be inserted, and for the word “quarter”,
the word “month” shall be substituted;
(iii) in
clause (b), for the word “quarter”, the word “month” shall be substituted; and
(iv) in
clause (c), for the word “quarter”, the word “month” shall be substituted;
(b) for
sub-section (2), the following shall be substituted, namely: —
“(2) Every prescribed person collecting
tax under Division II of this Part or Chapter XII or deducting tax from a
payment under Division III of this Part or Chapter XII shall furnish or e-file
statements under sub-section (1) by the 15th day of the month following the
month to which the withholding tax pertains.”;
(c) in
sub-section (3),
(i) the
word, “periodically” shall be omitted; and
(ii) for the
colon at the end. a full stop shall be substituted:
and
(d) after
sub-section (5), the following new sub-section shall be added, namely:—
“(6) Every person deducting tax from
payment under section 149 shall furnish to the Commissioner an annual statement
in the prescribed form and manner:
Provided that annual
statement shall also be filed where the income exceeds three hundred thousand
rupees but does not exceed three hundred and fifty thousand rupees in a tax
year.”:
(23) in section 168, for sub-section
(3), the following shall be substituted, namely:—
“(3) No tax
credit shall be allowed for any tax collected or deducted that is a final tax
under—
(a)
sub-section (7) of section 148:
(b) sub-section
(3) of section 151;
(c) sub-section
(1B) and (IBB) of section 152:
(d) clauses
(a), (c) and (d) of sub-section (3) of section 153:
(e)
sub-section (4) of section 154;
(f) sub-section
(3) of section 156:
(g) sub-section
(2) of section 156A;
(h)
sub-section (3) of section 233:
(i)
sub-section (5) of section 234: and
(j)
sub-section (3) of section 234A.”;
(24) in section 169, in sub-section
(1), in clause (b),
(a) for the
words, brackets, letters, comma and figure “clauses (a), (b) and (d) of
sub-section (1) of section 151” the words, brackets and figures “sub-section
(3) of section 151” shall be substituted:
(b) for the
words, brackets and figures “sub-section (6) of section 153” the words,
brackets, letters and figures “clauses (a), (c) and (d) of sub-section (3) of
section 153” shall be substituted;
(25) in section 176, in sub-section
(5), for the words “rule of law” the words “law or rules” shall be substituted:
(26) in section 182, in sub-section
(1), in the Table, in column (1),—
(a) gainst
S.No.1, in column (3), for the full stop, at the end, a colon shall be
substituted and thereafter the following shall be inserted, namely:—
“Explanation.—For the purposes of this
entry, it is declared that the expression “tax payable” means tax chargeable on
the taxable
income on the basis of assessment made or treated to
have been made under sections 120. 121, 122 or 122C.-; and
(b) in
sub-section (1), in the Table, in column No. 1 against Sr. No. 5, in column
(2), the following new proviso shall be added, namely:
“Provided that if the person opts to
pay the tax due on the basis of an order under section 129 on or before the due
date given in the notice under sub-section (2) of section 137 issued in
consequence of the said order, and does not file an appeal under section 131
the penalty payable shall be reduced by 50%.”:
(27) in section 206A, in sub-section
(3) for the full stop, at the end, colon shall be substituted and thereafter,
the following proviso shall he added, namely:—
“Provided that this section shall not
apply to a non resident tax payer having a permanent establishment in
(28) in section 209, in sub-section
(1), for the full stop, at the end, a colon shall be substituted and thereafter
the following proviso shall be added, namely:—
“Provided that the Board or the Chief
Commissioner, as the case may be, may transfer jurisdiction in respect of cases
or persons from one Commissioner to another”;
(29) in section 236A, in sub-section
(I),—
(a) after
the word “auction”, the words “or auction by a tender” shall be inserted: and
(b) for the
words “of Income Tax”, the words “Inland Revenue” shall be substituted:
(30) in section 216, in sub-section (5),
for the word “Commissioner” the word “Board”, shall be substituted;
(31) in section 236B, after sub-section
(2), the following new sub-sections shall be added, namely:—
“(3) The advance tax collected under
sub-section (1) shall be adjustable.
(4) The advance tax under this section
shall not be collected in the case of—
(a) the
Federal Government or a Provincial Government; or
(b) a person
who produces a certificate from the Commissioner Inland Revenue that income of
such person during the tax year is exempt.”;
(1) in Part
I,—
(A) in Division 1,—
(a) in clause (1),—
(i) the
words, brackets and figures “to which sub-section (1) of section 92 applies”
shall be omitted; and
(ii) for the TABLE, the following shall be substituted, namely :—
“TABLE
|
S.NO. |
Taxable
Income |
Rate
of Tax |
|
1 |
Where
the taxable income does not exceed Rs.350,000 |
0% |
|
2 |
Where
the taxable income exceeds Rs.350.000 but does not exceed Rs.400,000 |
1.50% |
|
3 |
Where
the taxable income exceeds Rs.400,000 but does not exceed Rs.450,000 |
2.50% |
|
4 |
Where
the taxable income exceeds Rs.450,000 but does not exceed Rs.550.000 |
3.50
% |
|
5 |
Where
the taxable income exceeds Rs.550,000 but does not exceed Rs.650.000 |
4.50
% |
|
6 |
Where
the taxable income exceeds Rs.650.000 but does not exceed Rs.750,000 |
6.00
% |
|
7 |
Where
the taxable income exceeds Rs.750.000 but does not exceed Rs.900,000 |
7.50
% |
|
8 |
Where
the taxable income exceeds Rs.900,000 but does not exceed Rs.1.050,000 |
9.00
% |
|
9 |
Where
the taxable income exceeds Rs.1,050,000 but does not exceed Rs.1,200.000 |
10.00
% |
|
10 |
Where
the taxable income exceeds Rs.1200,000 but does not exceed Rs.1,450,000 |
11.00
% |
|
11 |
Where
the taxable income exceeds Rs.1,450,000 but does not exceed Rs.1,700,000 |
12.50
% |
|
12 |
Where
the taxable income exceeds Rs.I.700,000 but does not exceed Rs.1,950,000 |
14.00
% |
|
13 |
Where
the taxable income exceeds Rs.1,950,000 but does not exceed Rs.2,250,000 |
15.00
% |
|
14 |
Where
the taxable income exceeds Rs.2.250,000 but does not exceed Rs.2,850.000 |
16.00
% |
|
15 |
Where
the taxable income exceeds Rs.2,850,000 but does not exceed Rs.3,550.000 |
17.50
% |
|
Where
the taxable income exceeds Rs.3.550,000 but does not exceed Rs.4.550,000 |
18.50
% |
|
|
17 |
Where
the taxable income exceeds Rs.4,550,000 |
20.00
%”; and |
(B) in Division VII, for the TABLE, the
following shall be substituted, namely:—
“TABLE
|
S.No. |
Period |
Tax
Year |
Rate
of Tax |
|
1. |
Where
holding period of a security is less than six months |
2011 |
10
% |
|
2. |
Where
holding period of a security is six months or more but less than twelve
months |
2011 |
7.5
% |
|
3. |
Where
holding period of a security is one year or more. |
- |
0
% “; and |
(II) in Part III, in Division IV, in
clause (3) for the figure. brackets and letter “(1A)”, the figure and brackets “(2)-
shall be substituted; and
(III) in Part IV, in Division VI, for
the figure “0.3”. the figure “0.2” shall be substituted:
(33) in the SECOND SCHEDULE,—
(i) in Part I,—
(a) in
clause (61), sub-clauses (xi) and (xxv) shall be omitted;
(b) clause (74A) shall be omitted;
(c) clause (93) shall be omitted;
(d) after clause (107), the following new clause shall he
inserted, namely:—
“(107A) Any
income derived by the Islamic Development Bank from its operations in
(e) clause
(114A) shall he omitted:
(ii) in Part
II in clause (5A), for the full stop, at the end, a colon shall be substituted
and thereafter the following proviso shall he added, namely:—
“Provided that tax deducted on profit on debt from
debt instruments, Government securities including treasury hills and Pakistan
Investment Bonds shall be final tax on profit on debt payable to a non-resident
person having no permanent establishment in Pakistan and the investments are
exclusively made through a Special Rupee Convertible Account maintained with a
Bank in Pakistan.”;
(iii) in
Part III, for clause (4), the following shall be substituted, namely:—
“(4) In respect of old and used automotive vehicles,
tax under section 148 shall not exceed the amount specified in Notification No.
S.R.O. 577(1)12005, dated the 6th June, 2005.”;
(iv) in Part
IV,—
(a) in
clause (11A), in sub-clause (i), after the figure and comma “2006,” the words,
comma and figure “or a pension fund registered under the Voluntary Pension
System Rules. 2005” shall be inserted;
(b) after
clause (38B)., the following new clause shall be inserted, namely:—
“(38C) The provisions of section 151. 152. 153 and 233
shall not apply to the Islamic Development Bank.”:
(c) in
clause (42), for the brackets and figure “(6)” the brackets and figure “(3)”
shall be substituted:
(d) in
clause (46A), for the brackets and figure “(6)” the brackets and figure “(3)”
shall be substituted: and
(e) for
clause (47D), the following shall be substituted;
“(47D) The provisions of clause (a) of sub-section (3)
of section 153 shall not apply to cotton ginners”: and
(34) in the SEVENTH SCHEDULE,—
(a) in
(i) after
the figure and sign “1%” occurring for the second time, the words, figures,
letters and sign “of total advances for a banking company and 5% of total
advances for consumers and small and medium enterprises (SMEs)” shall be
inserted: and
(ii) for the
proviso the following shall be substituted, namely:—
“Provided that if provisioning is less than 1% of
advances, for a banking company then actual provisioning for the year shall be
allowed:
Provided further that if provisioning is less than 5%
of advances for consumers and small and medium enterprises (SMEs) then actual
provisioning for the year shall be allowed and this provisioning shall be
allowable from the first day of July, 2010.”; and
(b) in rule
6, in the proviso, for the full stop, at the end, a colon shall be substituted
and thereafter the following new proviso shall he added, namely:—
“Provided further that the “Dividend” received by a
banking company from its asset management company shall he taxed at the rate of
20%.”.
7. Amendments of the Federal Excise
Act, 2005.—In the Federal Excise Act.
2005, the following further amendments shall be made, namely:—
(1) in section 2, in clause (16), in
sub-clause (b), for the word and comma “snuff,” the words and commas “snuff or
preparation of unmanufactured tobacco by drying, cutting and thrashing of raw
tobacco,” shall be substituted:
(2) section 3A shall be omitted
provided in case of imports, such omission shall be deemed to have been made on
20th June, 2011;
(3) in section 8, after the word “percent”,
the words and comma “per annum ,” shall be inserted:
(4) in section 14,—
(a) in
sub-section (I), for the word “three”, the word “five” shall be substituted;
and
(b) in
sub-section (2), for the full stop, at the end, a colon shall be substituted
and thereafter, the following new provisos shall he inserted, namely:—
“Provided that an
order under this section shall be made within one hundred and twenty days of
issuance of show cause notice or within such extended period as the
Commissioner may, for reasons to be recorded in writing, fix, provided that
such extended period shall in no case exceed sixty days:
Provided further that any period during
which the proceedings arc adjourned on account of a stay order or Alternative
Dispute Resolution proceedings or the time taken through adjournment by the
petitioner not exceeding thirty days shall be excluded from the computation of
the periods specified in the first proviso.”;
(5) in section 26, in sub-section (I),
after the word “cigarettes” ,wherever occurring, the words “or beverages” shall
be inserted;
(6) in section 27,—
(a) in the
heading, after the word “cigarettes”, the words “or beverages” shall be
inserted: and
(b) in
sub-sections (1), (2) and (3), after the word “cigarettes”. wherever occurring,
the words “or beverages” shall be inserted;
(7) in section 29, in sub-section (2),
in clause (a), for the acronym “CBR”, the words “Inland Revenue” shall he
substituted;
(8) in section 34, in the heading, the
words “and Reference to High Court” shall be omitted:
(9) in section 38, in sub-section (4),
after the word “appropriate”, the words “within forty-five days of the receipt
thereof– shall he inserted;
(10) in section 43, after sub-section
(2), the following explanation shall be added, namely:—
Explanation.—For the purposes of this section, the expression “any
act or thing is to be done” includes “any act or thing to be done by the
registered person or by the authorities specified in section 29 of this Act.”;
(11) In the First Schedule,—
(a) in Table
I, in column (1).—
(i) against
serial numbers 4 and 5, in column (4), for the word “Twelve”, the word “Six”
shall respectively be substituted:
(ii) against
serial number 6, in column (4), for the word “Ten”, the word “Six” shall be
substituted:
(iii) against serial number 7, in column (4), for the word “Five”.
the word “Ten” shall be substituted;
(iv) for
serial numbers 9, 10 and II and the corresponding entries relating thereto in
columns (2), (3) and (4), the following shall be substituted, namely:—
|
“9. |
Locally
produced cigarettes if their retail price exceeds twenty one rupees per ten
cigarettes. |
24.02 |
Sixty-five
per cent of the retail price |
|
10. |
Locally
produced cigarettes if their retail price exceeds eleven rupees and fifty
paisa per ten cigarettes but does not exceed twenty-one rupees per ten
cigarettes |
24:02 |
Six
rupees and four paisa per ten cigarettes plus seventy per cent per
incremental rupee or part thereof. |
|
11. |
Locally
produced cigarettes if their retail price does not exceed eleven rupees and
fifty paisa per ten cigarettes |
24.02 |
Six
rupees and four paisa per ten cigarettes”: |
(v) against serial number 13, in column (4), for the word
“Seven”. the word “Five” shall be substituted;
(vi) serial numbers 17, 18, 21, 26, 28, 29, 30, 39, 40,
46, 47, 48, 49, 51 and 52, and the corresponding entries relating thereto in
columns (2), (3) and (4) shall be omitted:
(vii) against serial number 50, in column (4), for the
words “one rupee per filter rod”, the words and full stop “Twenty per cent ad
val” shall be substituted;
(viii) after serial number 52 and the corresponding entries
relating thereto in columns (2), (3) and (4), omitted as aforesaid, the
following new serial number and corresponding entries relating thereto shall be
added, namely:—
“53. White Crystalline Sugar 1701.9910
and 1701.9920. Eight per cent ad val”; and
(ix) in the
Restriction, at the end, for the figures and hyphen “2010-11”, the figures and
hyphen “2011-12” shall be substituted; and
(b) in
Table-11, serial number 12 and the corresponding entries relating thereto in
columns (2), (3) and (4) shall be omitted; and
(12) in the Second
Schedule, in the Table, in column (I), after serial number 2 and the entries
relating thereto in columns (2) and (3), the following new serial number and
the corresponding entries relating thereto shall be added, namely:—
|
“3. |
White
Crystalline Sugar |
1701.9910 |
THE SCHEDULE
[see section 2 (9)]
AMENDMENT IN THE CUSTOMS ACT, 1969 (IV OF 1969)�
In
the Customs Act, 1969 (IV of 1969), in the First Schedule, for the
corresponding entries against “PCT Code”, “Description” and “CD%” specified in
columns (1), (2) and (3) appearing in chapters 1 to 99, the following
corresponding entries relating to “PCT Code”, “Description” and “CD%” specified
in columns (1), (2) and (3) of the Table below shall be substituted, namely:—
“TABLE
|
PCT
CODE |
DESCRIPTION |
CD% |
|
2923.9010 |
----
Betaine |
5 |
|
2930.9060 |
--0.0.
diethyl O-(3,5,6-trichloro 2-pyridyl) |
5 |
|
|
Phosphorothioate |
|
|
74.04 |
Copper
waste and scrap. |
|
|
7404.0010 |
-
- -Brass scrap |
0 |
|
7404.0090 |
---
Other |
0 |
|
7407.1010 |
-
- - Bars |
5 |
|
7407.2100 |
-
- Of copper-zinc base alloys (brass) |
5 |
|
87.10 |
Tanks
and other armoured fighting vehicles, motorised, whether or not fitted with
weapons, and parts of such vehicles. |
|
|
8710.0010 |
-
- -Armoured cash carrying vehicles |
20 |
|
8710.0090 |
-
- -Other |
20 |
|
9918 |
Machinery equipment, apparatus, appliances,
components. sub-components and pans not produced or manufactured in |
0” |
DECLARATION UNDER THE PROVISIONAL
COLLECTION OF TAXES ACT. 1931 (XVI OF 19311)
The
provisions of sub-section (9) of section 2, sub-section (11) of section 4 and
sub-clauses (iii), (iv), (viii) and (ix) of clause (a) of sub-section (10) and
sub-section (11) of section 12 of this Act shall have effect for the purposes
of this declaration and of the provisions of Provisional Collection of Taxes
Act, 1931 (XVI of 1931), as if they were provisions of imposition of duties and
taxes of customs, sales tax and federal excise. It is hereby declared
accordingly in terms of section 3 of the Provisional Collection of Taxes Act,
1931 (XVI of 1931), that it is expedient in the public interest that the
aforesaid provisions of this Act shall have effect from the 4th
June, 2011.
CORRIGENDA
[to
the Gazette of
Page: 275: After clause 21, and before The First
Schedule read,—
“DECLARATION UNDER THE PROVISIONAL
COLLECTION OF TAXES ACT, 1931 (XVI OF 1931)
The
provisions of sub-clause (46) of clause 8 and sub-clause (21) of clause 16 of
this Act shall have effect, for the purpose of this declaration and of the
provisions of Provisional Collection of Taxes Act, 1931 (XVI of 1931) as if
they were provisions for imposition of duties of customs and exemption of sales
tax or withdrawal thereof respectively and it is hereby declared accordingly in
terms of section 3 of the Act that it is expedient in the public interest that
the provisions of the said clauses have effect on 6th June, 2006 under the Act,
and for the purposes of above declaration the provisions of paragraph (i) of
sub-clause (12) of clause 20 for increase or decrease of excise duty shall take
immediate effect under that Act.”
Go to Index
| LL. B. – I | LL. B. – II
| LL. B. – III | LL. B.
Directory | Home