Income Tax Ordinance section 153 not applicable on ICI
Published on 5/11/2003
ISLAMABAD (May 11 2003) : The Central Board of Revenue (CBR) has announced
that the provision of section 153 (payment for goods and services) of the Income
Tax Ordinance 2001 would not be applicable on the payment received by ICI
Pakistan Limited on the supply of petroleum products.
The CBR has amended Second Schedule of the Income Tax Ordinance 2001 through an SRO(I)/2003 issued here on Saturday.
The CBR has, time and again, given concession of section 153 to a number of companies through issuance of SROs.
Section 153 deals with the payment for goods and services.
As per section 153, every prescribed person 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 the sale of goods; rendering of services; on the execution of a contract, other than a contract for the supply of goods or the rendering of professional services, would at the time of making the payment, deduct tax from the gross amount payable at the rate specified in Division III of Part III of the First Schedule.
The text of the SRO issued for ICI Pakistan Limited.
In exercise of the powers conferred by sub-section (2) of section 53 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Government is pleased to direct that the following further amendment shall be made in the Second Schedule to the said Ordinance, namely:
In the aforesaid Schedule, in Part IV, after clause (43D), the following new clause shall be inserted, namely:
"43E): The provisions of section 153 shall not apply to the payments received by M/s ICI Pakistan Limited, for the supply of petroleum products".
Courtesy of Business Recorder