06-18-2009, 04:42 PM
Dear Farhan,
Clause 46 of Part IV of Second Schedule of the Income Tax Ordinance 2001 states -
"The provisions of sub-section (1) of section 153 shall not apply to
any payment received by an oil distribution company or an oil refinery 3[or
Permanent Establishment of Non-resident Petroleum Exploration and Production
(E&P) Companies] for supply of its petroleum products.]"
Its clear from above that if purchase oil direct from any oil distribution company like PSO , ARL etc then you will not deduct tax.
But there is no specific provision in law that defines the status of payments made to petrol pumps etc.
Any comments on above will be appreciated.
Clause 46 of Part IV of Second Schedule of the Income Tax Ordinance 2001 states -
"The provisions of sub-section (1) of section 153 shall not apply to
any payment received by an oil distribution company or an oil refinery 3[or
Permanent Establishment of Non-resident Petroleum Exploration and Production
(E&P) Companies] for supply of its petroleum products.]"
Its clear from above that if purchase oil direct from any oil distribution company like PSO , ARL etc then you will not deduct tax.
But there is no specific provision in law that defines the status of payments made to petrol pumps etc.
Any comments on above will be appreciated.
