TRANSITIONAL ADVANCE TAX PROVISIONS

TRANSITIONAL ADVANCE TAX PROVISIONS

Cash withdrawal from a bank. (1) Every banking company shall deduct tax at the rate specified in Division VI of Part IV of the First Schedule, if the payment for cash withdrawal, or the sum total of the payments for cash withdrawal in a day, exceeds twenty-five thousand rupees.] (2) Advance tax under this section shall not be collected in the case of withdrawals made by,- (a) the Federal Government or a Provincial Government; (b) a foreign diplomat or a diplomatic mission in Pakistan; or (c) a person who produces a certificate from the Commissioner that his income during the tax year is exempt.

TRANSITIONAL ADVANCE TAX PROVISIONS

Advance tax on transactions in bank.— (1) Every banking company, non-banking financial institution, exchange company or any authorized dealer of foreign exchange shall collect advance tax at the time of sale against cash of any instrument, including Demand Draft, Pay Order, CDR, STDR, SDR, RTC, or any other instrument of bearer nature or on receipt of cash on cancellation of any of these instruments: Provided that this sub-section shall not be applicable in case of inter-bank or intra-bank transfer and also where payment is made through a crossed cheque for purchase of a financial instrument as referred to in sub-section (1). (2) Every banking company, non-banking financial institution, exchange company or any authorized dealer of foreign exchange shall collect advance tax at the time of transfer of any sum against cash through online transfer, telegraphic transfer, mail transfer or any other mode of electronic transfer.

TRANSITIONAL ADVANCE TAX PROVISIONS

Advance tax on transactions in bank.— (3) The advance tax under this section shall be collected at the rate specified in Division VIA of Part IV of the First Schedule, where the sum total of payments for transactions mentioned in sub-section (1) or sub-section (2) as the case may be, exceed twenty-five thousand rupees in a day.

(4) Advance tax under this section shall not be collected in the case of transactions made by, (a) the Federal Government or a Provincial Government; (b) a foreign diplomat or a diplomatic mission in Pakistan; or (c) a person who produces a certificate from the Commissioner that its income during the tax year is exempt

TRANSITIONAL ADVANCE TAX PROVISIONS

Advance tax on private motor vehicles.— Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of registration of a new locally manufactured motor vehicle, at the rates specified in Division VII of Part IV of the First Schedule: Provided that the provisions of this section shall not be applicable in the case of – (a) the Federal Government; (b) the Provincial Government; (c) the Local Government; (d) a foreign diplomat; or (e) a diplomatic mission in Pakistan

TRANSITIONAL ADVANCE TAX PROVISIONS

Brokerage and commission. (1) Where any payment on account of brokerage or commission is made by the Federal Government, a Provincial Government, a Local Government], a company or an association of persons constituted by, or under any law (hereinafter called the “principaL”) to a [ ] person (hereinafter called the “agent”), the principal shall deduct advance tax at the rate specified in Division II of Part IV of the First Schedule from such payment. (2) If the agent retains Commission or brokerage from any amount remitted by him to the principal, he shall be deemed to have been paid the commission or brokerage by the principal and the principal shall collect advance tax from the agent. (3) Where any tax is collected from a person under sub-section (1), the tax so collected shall be the final tax on the income of such persons

TRANSITIONAL ADVANCE TAX PROVISIONS

Collection of tax by a stock exchange registered in Pakistan. (1) A stock exchange registered in Pakistan shall collect advance tax (a) at the rates specified in Division IIA of Part IV of First Schedule from its Members on purchase of shares in lieu of [tax on] the commission earned by such Members; (b) at the rates specified in Division IIA of Part IV of First Schedule from its Members on sale of shares in lieu of [tax on] the commission earned by such Members; (c) from its [Members] in respect of trading of shares by the Members at the rates specified in Division IIA of Part IV of First Schedule; and (d) from its 5[Members] in respect of financing of carryover trades in share business at the rate specified in Division IIA of Part IV of First schedule.

(2) The tax collected under clauses (a) to (c) of sub-section (1) shall be adjustable.

TRANSITIONAL ADVANCE TAX PROVISIONS

Tax on motor vehicles.-(1) Any person 10[at the time of] collecting motor vehicle tax shall also collect advance tax at the rates specified in Part IV of the First Schedule. (2) If the motor vehicle tax is collected in instalments, the advance tax may also be collected in instalments in like manner. (2A) In respect of motor cars used for more than ten years in Pakistan, no advance tax shall be collected after a period of ten years.] (3) In respect of a passenger transport vehicle with registered seating capacity of ten or more persons, advance tax shall not be collected after a period of ten years from the first day of July of the year of make of the vehicle.

TRANSITIONAL ADVANCE TAX PROVISIONS

Tax on motor vehicles.-(4) In respect of a goods transport vehicle with registered laden weight of less than 8120 kilograms, advance tax shall not be collected after a period period of ten years from the date of first registration of vehicle in Pakistan. (5) Where tax is collected from any person being the owner of goods transport vehicle, the tax so collected shall be the final tax on the income of such person 2[from plying, or hiring out, of such vehicle.

TRANSITIONAL ADVANCE TAX PROVISIONS

CNG Stations. (1) There shall be collected advance tax at the rate specified in Division VIB of Part III of the First Schedule on the amount of gas bill of a Compressed Natural Gas station. (2) The person preparing gas consumption bill shall charge advance tax under sub-section (1) in the manner gas consumption charges are charged. (3) The tax collected under this section shall be a final tax on the income of a CNG station arising from the consumption of the gas referred to in sub-section (1). (4) The taxpayers shall not be entitled to claim any adjustment of withholding tax collected or deducted under any other head, during the tax year

TRANSITIONAL ADVANCE TAX PROVISIONS

Electricity consumption.- (1) There shall be collected advance tax at the rates specified in Part-IV of the First Schedule on the amount of electricity bill of a commercial or industrial consumer. (2) The person preparing electricity consumption bill shall charge advance tax under sub-section (1) in the manner electricity consumption charges are charged. (3) Advance tax under this section shall not be collected from a person who produces a certificate from the Commissioner that his income during tax year is exempt from tax.

TRANSITIONAL ADVANCE TAX PROVISIONS

Electricity consumption.- (4) Under this section, (a) in the case of a taxpayer other than a company, tax collected upto bill amount of thirty thousand rupees per month shall be treated as minimum tax on the income of such persons and no refund shall be allowed; (b) in the case of a taxpayer other than a company, tax collected on monthly bill over and above thirty thousand rupees per month shall be adjustable; and (c) in the case of a company, tax collected shall be adjustable against tax liability.

TRANSITIONAL ADVANCE TAX PROVISIONS

Telephone users.- (1) Advance tax at the rates specified in Part IV of the First Schedule shall be collected on the amount of – (a) telephone bill of a subscriber; (b) prepaid cards for telephones and] (c) sale of units through any electronic medium or whatever form. (2) The person preparing the telephone bill shall charge advance tax under sub-section (1) in the manner telephone charges are charged. (3) The person issuing or selling prepaid cards for telephones shall collect advance tax under sub-section (1) from the purchasers at the time of issuance or sale of cards. (3A) The person issuing or selling units through any electronic medium or or whatever form shall collect advance tax under sub-section (1) from the purchaser at the time of issuance of sale of units. (4) Advance tax under this section shall not be collected from Government, a foreign diplomat, a diplomatic mission in Pakistan, or a person who produces a certificate from the Commissioner that his income during the tax year is exempt from tax.

TRANSITIONAL ADVANCE TAX PROVISIONS

Advance tax at the time of sale by auction. – (1) Any person making sale by public auction or auction by a tender, of any property or goods (including property or goods confiscated or attached) either belonging to or not belonging to the Government, local Government, any authority, a company, a foreign association declared to be a company under sub-clause (vi) of clause (b) of sub-section (2) of section 80, or a foreign contractor or a consultant or a consortium or Collector of Customs or Commissioner of Inland Revenue or any any other authority, shall collect advance tax, computed on the basis of sale price of such property and at the rate specified in Division VIII of Part IV of the First Schedule, from the person to whom such property or goods are being sold. (2) The credit for the tax collected under sub-section (1) in that tax year shall, subject to the provisions of section 147, be given in computing the tax payable by the person purchasing such property in the relevant tax year or in the case of a taxpayer to whom section 98B or section 145 applies, the tax year, in which the “said date” as referred to in that section, falls or whichever is later. Explanation.- For the purposes of this section, sale of any property includes the awarding of any lease to any person, including a lease of the right to collect tolls, fees or other levies, by whatever name called.

TRANSITIONAL ADVANCE TAX PROVISIONS

Advance tax on purchase of air ticket.(1) There shall be collected advance tax at the rate specified in Division IX of Part IV of the First Schedule, on the purchase of gross amount of domestic air ticket. (2) The person preparing air ticket shall charge advance tax under sub-section (1) in the manner air ticket charges are charged.] (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.