ISLAMABAD (August 17 2004): On persistent demand of cotton ginners and cotton textile companies, the Central Board of Revenue (CBR) has permitted these sectors to carry out their transactions as per normal tax year (July 1-June 30) instead of previously assigned 'special tax year'.
The decision will help these sectors to fulfil their obligations more effectively under Income Tax Ordinance 2001.
In this regard, the CBR issued two notifications here on Monday.
Official sources told Business Recorder that the special tax year was assigned to cotton ginners and cotton textile units due to timing of the cotton season. At that time, both these sectors requested the tax authorities to allow them 'special tax year' keeping in view the cotton season.
On the request of these sectors, CBR has changed the 'special tax year' to normal financial year. Now, the financial year would be the 'normal tax year' for these sectors instead of special tax year.
FOLLOWING IS THE TEXT OF THE NOTIFICATION ISSUED ON MONDAY: In exercise of the powers conferred by clause (i) of sub-section (2A) of section 74 of the Income Tax Ordinance 2001 (XLIX of 2001), the Central Board of Revenue (CBR) is pleased to direct that the following amendments shall be made in its Notification No SRO.134(R)/68 of July 31, 1968, namely:-
IN THE AFORESAID NOTIFICATION: (a) In clause (a), the comma and word, “or” shall be omitted; and
(b) In clause (b), the words and comma “cotton textiles,” shall be omitted.