80.  Shipping business of non-residents.-

(1)   Notwithstanding anything contained in this Ordinance, where a non-resident carries on business of operation of ships as the owner or charterer thereof (hereinafter in this section referred to as the 'principal') tax shall be levied and collected in respect of such business in accordance with the provisions of this section.

(2)   Before the departure from any port in Pakistan of any ship, the master of the ship shall prepare and furnish to the Deputy Commissioner a return showing (a) the amount paid or payable (whether in or out of Pakistan) to the principal, or to any person on his behalf, on account of the carriage of passengers, livestock, mail or goods shipped at that port since the last arrival of the ship and (b) the amount received, or deemed to be received, in Pakistan by, or on behalf of, the principal on account of the carriage of passengers, livestock, mail or goods at any port outside Pakistan.

(3)   On receipt of the return, the Deputy Commissioner shall determine the aggregate of the amounts referred to in sub-section (2) and, for this purpose, may call for such particulars, accounts or documents, as he may require and the aggregate of the said amounts so determined shall be deemed to be income received in Pakistan by the principal from the said business chargeable to tax under this Ordinance under the head 'Income from business or profession’ and tax thereon shall be charged at the rate of eight per cent of such income.

(4)   Where the Deputy Commissioner is satisfied that it is not possible for the master of the ship or the principal to furnish the return required under sub-section (2) before the departure of the ship from the port and the principal has made satisfactory arrangements for the filing of the return and payment of the tax by any other person on his behalf, the Deputy Commissioner may, if the return is filed within thirty days of the departure of the ship, deem the filing of the return by the person so authorised by the principal as sufficient compliance with sub-section(2).

(5)   No port clearance shall be granted to the ship until the Collector of Customs, or other officer duly authorised to grant the same, is satisfied that the tax payable under sub-section (3) has been duly paid or that satisfactory arrangements have been made for the payment thereof.

(6)   Nothing contained in this Ordinance shall be so construed as to allow any expense against the aggregate amount of receipts as determined under sub-section(3).

(7)   The tax paid under this section shall be deemed to be the final discharge of the tax liability of the assessee under this Ordinance, and the assessee shall not be required to file the return of total income under section 55 nor shall he be entitled to claim any refund or adjustment on the basis of such return.

80A. Air transport business of non-residents.-

(1)   Notwithstanding anything contained in this Ordinance, where a non-resident person carries on the business of operation of aircrafts, as the owner or charterer thereof (hereafter in this section referred to as the "principal"), the aggregate of the receipts specified in sub-section (1A) shall be deemed to be income received in Pakistan by the principal from the said business chargeable to tax under the head "Income from business or profession" and tax thereon shall be charged at the rate of three per cent of such income.

(1A) The receipts, referred to in sub-section (1), shall be the following, namely:-

(a)    the amount paid or payable (whether in or out of Pakistan) to the principal or to any person on his behalf on account of the carriage of passengers, livestock, mail or goods loaded from any place in Pakistan; and

(b)    the amount received or deemed to be received in Pakistan by or on behalf of the principal on account of the carriage of passengers, livestock, mail or goods from any place outside Pakistan.

(2)   The principal or any agent authorised by him in this behalf shall prepare and furnish to the Deputy Commissioner, within forty-five days from the last day of each quarter of every financial year, that is to say, the thirtieth day of September, the thirty-first day of December, the thirty-first of March and the thirtieth day of June, respectively, a return, in respect of each quarter as aforesaid, showing the receipts referred to in sub-section (1A).

(3)   On receipt of the return, the Deputy Commissioner may, after calling for such particulars, accounts or documents as he may require, determine the aggregate of the amounts referred to in sub-section (1A) and charge tax as laid down in sub-section (1).

(4)   Where the principal fails to pay tax as determined under subsection (1), for more than three months, the Commissioner of Income Tax may issue to the authority by whom clearance may be granted to that aircraft a certificate containing the name of the principal and the amount of tax payable by him; and, on receipt of such certificate, the said authority shall be empowered and required to refuse clearance from any airport in Pakistan to any aircraft owned or chartered by such person until the tax payable has been paid.

(5)   Nothing contained in this Ordinance shall be so construed as to allow any expense against the aggregate amount of receipts as determined under sub-section (1A).

(6)   The tax paid under this section shall be deemed to be the final discharge of the tax liability of the assessee under this Ordinance, and the assessee shall not be required to file the return of total income under section 55 nor shall he be entitled to claim any refund or adjustment on the basis of such return.

(1)   Notwithstanding anything contained in this Ordinance, where any consideration by way of fees for technical services referred to in the Explanation to sub-section (5) of section 12 is received or is deemed to be received by, or accrues or arises or is deemed to accrue or arise to, a non-resident, the whole of such consideration shall be deemed to be income of the non-resident and tax thereon shall be charged at the rate of fifteen per cent of such income.

(2)   A non-resident referred to in sub-section (1), or an agent authorised by him in this behalf, shall prepare and furnish to the Deputy Commissioner within thirty days from the last day of each period of six months in every financial year, that is to say, the thirty-first day of December and the thirtieth day of June, respectively, a return, in respect of each such period of six months as aforesaid, showing therein full particulars of the income referred to in the said sub-section:

Provided that, where such non-resident is likely to leave Pakistan in any six month period as aforesaid or shortly after its expiry and he has no present intention of returning to Pakistan, the provisions of section 81 shall, so far as may be, apply as if references to financial year, the return of total income, the income year, the order of assessment, the assessment year and rate of tax were references to the corresponding provisions of this section.

(3)   On receipt of such return, the Deputy Commissioner may, after calling for such particulars, accounts or documents as he may require, determine the income referred to in sub-section (2) and charge tax thereon in accordance with the provisions of this section.

(4)   Nothing contained in this Ordinance shall be so construed as to allow any expense against the income determined under sub-section (3).

(5)   The tax paid under this section shall, to the extent that the income of the non-resident is chargeable under this section, be deemed to be the final discharge of his tax liability under this Ordinance, and he shall not be required to file the return of total income under section 55 or be entitled to claim any refund or adjustment on the basis of such return.

(6)   The provisions of this section shall not apply to a non-resident in respect of any consideration referred to in sub-section (1) for rendering technical services under an agreement entered into on or before the thirtieth day of June, 1987.

(1)   Notwithstanding anything contained in this Ordinance where any consideration by way of royalty, referred to in the Explanation to sub-section (4) of section 12 is received or is deemed to be received by, or accrues or arises or is deemed to accrue or arise to, a non-resident, the whole of such consideration shall be deemed to be income of the non-resident and tax thereon shall be charged at the rate of fifteen per cent of such income.

(2)   A non-resident referred to in sub-section (1), or an agent authorised by the non-resident to receive such royalty on his behalf, shall prepare and furnish to the Deputy Commissioner within thirty days from the last day of each period of six months in every financial year, that is to say, the thirty-first day of December and the thirtieth day of June respectively, a return, in respect of each such period of six months as aforesaid, showing therein full particulars of the income referred to in the said sub-section and tax deducted thereon.

(3)   On receipt of such return, the Deputy Commissioner may, after calling for such particulars, accounts or documents as he may require, determine the income referred to in sub-section (2) and charge tax thereon in accordance with the provisions of this section.

(4)   Nothing contained in this Ordinance shall be so construed as to allow any expense against the income determined under sub-section (3).

(5)   The tax paid under this section shall, to the extent that the income of the non-resident is chargeable under this section, be deemed to be the final discharge of his tax liability under this Ordinance and he shall not be required to file the return of total income under section 55 nor shall claim any refund or adjustment on the basis of such return.

 

(1)   Notwithstanding anything contained in this Ordinance or any other law for the time being in force, where any amount referred to in sub-section (2) is received by or accrues or arises or is deemed to accrue or arise to an individual, unregistered firm, association of persons, Hindu undivided family or artificial juridical person referred to in clause (32) of section 2, the whole of such amount shall be deemed to be income of such person and tax thereon shall be charged at the rates specified in the First Schedule.

(2)   The amount referred to in sub-section (1) shall be the following, namely:-

(a)    dividend on which tax is deductible under sub-section (6A) of section 50;

(aa) interest or profit on Directorate of National Savings’ regular income certificates and monthly income savings account scheme where monthly installment exceeds one thousand rupees, in which  investment is made upto thirtieth June, 2001.

(b)    interest or profit on which tax is deductible under sub-section (2A) of section 50;

(bb)  the amount received on encashment of bearer certificates on which tax is deductible under sub-section (5B) of section 50:

Provided that this clause shall not apply in respect of any assessment year commencing on, or after, the first day of July, 2002;

(c)    interest or profit on which tax is deductible under sub-section (7D) of section 50:

Provided that this clause shall not apply in respect of any assessment year commencing on, or after, the first day of July, 2002;

(d)    prizes and winnings on which tax is deductible or collectable under sub-section (7C) of section 50.

(3)   Nothing contained in this Ordinance shall be so construed as to authorise any allowance or deduction against the income as determined under sub-section (1) or any refund of tax deducted or collected under section 50 or set off of any loss under any provision of this Ordinance.

(4)   Where the assessee has no income other than the income referred to in sub-section (1) in respect of which tax has been deducted or collected, the tax deducted or collected under section 50 shall be deemed to be the final discharge of the tax liability of the assessee under this Ordinance and he shall not be required to file the return of total income under section 55.

(5)   In a case to which sub-section (4) applies, an order under section 59A shall be deemed to have been made in respect of income referred to in sub-section (1).

80BB. Tax on income of goods transport vehicles owners. 

(1)   Notwithstanding anything contained in this Ordinance or any other law for the time being in force, where any tax is withheld in accordance with sub-section (6) of section 50 at the rates specified in sub-paragraph (I) of paragraph G of the First Schedule, from any person being the owner of a goods transport vehicle, the tax so collected shall be deemed to be the final discharge of the tax liability of such person under this Ordinance in respect of  income derived from plying of goods transport vehicles and he shall not be required to file the return of total income under section 55.

 (2)  In a case to which sub-section (1) applies, an order under section 59A shall be deemed to have been made in respect of income referred to in sub-section (1).

(1)   Notwithstanding anything contained in this Ordinance or any other law for the time being in force, where any amount referred to in sub-section (2) is received by or accrues or arises or is deemed to accrue or arise to any person the whole of such amount shall be deemed to be income of the said person and tax thereon shall be charged at the rate specified in the First Schedule.

(2)   The amount referred to in sub-section (1) shall be the following, namely:-

(a)    Where the person is a resident, -

(i)     the amount representing payments on which tax is deductible under sub-section (4) of section 50, other than payments on account of services rendered;

(ia)   the amount representing payments from which tax is deductible under sub-section (4A) of section 50;

(ii)    the amount as computed for the purpose of collection of tax under sub-section (5) of section 50 in respect of goods imported, not being goods imported by an industrial undertaking as raw material for its own consumption;

(iia)   the amount on which tax is collectable under sub-section (5AAA) of section 50;

(iii)   the amount on which tax is deductible under sub-section (7A) of section 50 in respect of lease of right to collect octroi duties, tolls, fees or other levies, by whatever name called; and

(iv)   the amount on which tax is deductible under sub-section (7H) of section 50; and

(b)    where the person is a non-resident, the amount representing payments on account of execution of a contract for construction, assembly or like project in Pakistan on which tax is deductible under sub-section (4) of section 50:

Provided that nothing in this section shall apply to amounts referred to in clauses (ia), (iia) and (iii) of sub-section (2) in respect of any assessment year commencing on, or after, the first day of July, 2002.

(3)   Nothing contained in this Ordinance shall be so construed as to authorise any allowance or deduction against the income as determined under sub-section (1) or any refund of tax deducted or collected under section 50 or set off of any loss under any provision of this Ordinance.

(4)   Where the assessee has no income other than the income referred to in sub-section (1) in respect of which tax has been deducted or collected, the tax deducted or collected under section 50 shall be deemed to be the final discharge of his tax liability under this Ordinance and he shall not be required to file the return of total income under section 55:

Provided that, in respect of the assessment year commencing on the first day of July, 1991, where the tax deducted or collected in the preceding financial year under sub-section (4) or sub-section (5) of section 50 is less than the tax payable under this section, the tax so deducted or collected shall not constitute full and final discharge of the tax liability of the assessee and he shall be required to pay the amount representing the difference between the tax payable under this section and the tax so deducted or collected and all the provisions of this Ordinance shall apply accordingly :

Provided further that where the tax deducted or collected under any sub-section of section 50 specified in clause (a) of sub-section (2) is, for any reason, not collected or deducted in accordance with the said sub-section or the tax so deducted in less than the amount deductible or collectable, the assessee shall be required to pay the said amount.

(5)   Where an assessee, while explaining the nature and source of any sum, investment, money, valuable article, excess amount or expenditure, referred to in section 13, takes into account any source of income which is subject to tax in accordance with the provisions of this section, he shall not be entitled to take credit of any sum as is in excess of an amount which if taxed at a rate or rates, other than the rate applicable to income chargeable to tax under this section, would have resulted in tax liability equal to the tax payable in respect of income under section.

Sub-section (5A) omitted which previously reads as follows:

(5A)   Where an assessee derives income from any source which is subject to tax in accordance with the provisions of this section, and the tax liability is less than the tax payable on such income had it not been chargeable to tax under this section, the difference in tax shall be payable in accordance with section 54 along with the return of income, provisions of sub-section (4) notwithstanding.

(6)   For the purpose of determining the share of a partner of a firm out of such income of the firm as is determined under section 80B or this section, the said income of the firm shall be taken to be an amount which if taxed at the rate or rates, other than the rate applicable to income chargeable to tax under section 80B or this section, would have resulted in tax liability equal to the tax payable in respect of income under section 80B or this section.

(7)   In a case to which sub-section (4) applies, an order under section 59A shall be deemed to have been made in respect of income referred to in sub-section (1).

(1)   Notwithstanding anything contained in this Ordinance or any other law for the time being in force, where any amount referred to in sub-section (5A), or sub-section (5AA), of section 50 is received by any person, the whole of such amount shall be deemed to be the income of the said person and tax there on shall be charged at the rates specified in the First Schedule.

(2)   Nothing contained in this Ordinance shall be so construed as to authorise any allowance or deduction against the income as determined under sub-section (1) or any refund of tax deducted under sub-section (5A) of section 50 or set off of any loss under any provision of this Ordinance.

(3)   Where the assessee has no income other than the income referred to in sub-section (1) in respect of which tax has been deducted under sub-section (5A) of section 50, the tax so deducted shall be deemed to be the final discharge of his tax liability under this Ordinance and he shall not be required to file the return of total income under section 55.

(4)   Where an assessee while explaining the nature and source of any sum, investment, money, valuable article, excess amount or expenditure, referred to in section 13, takes into account any source of income which is subject to tax in accordance with the provisions of this section, he shall not be entitled to credit of any sum as is in excess of an amount which if taxed at a rate or rates, other than the rate applicable to income chargeable to tax under this section, would have resulted in tax liability equal to the tax payable in respect of income under this section.

(5)   For the purpose of determining the share of a partner of a firm out of such income of the firm as is determined under this section, the income of the firm shall be taken to be an amount which if taxed at the rate or rates, other than the rate applicable to income chargeable to tax under this section, would have resulted in tax liability equal to the tax payable in respect of income under this section.

(6)   In a case to which sub-section (3) applies, an order under section 59A shall be deemed to have been made in respect of income referred to in sub-section (1).

80CD. Tax on income of industrial undertakings located in Export Processing Zones.

 (1)  Notwithstanding anything contained in this Ordinance or any other law for the time being in force, where any goods referred to in sub-section (5AAB) of section 50 are exported by any person, the value of such goods shall be deemed to be the income of the said person and tax thereon shall be charged at the rates specified in the First Schedule.

 (2)  Nothing contained in this Ordinance shall be so construed as to authorise any allowance or deduction against the income as determined under sub-section (1) or any refund of tax collected under sub-section (5AAB) of section 50 or set off of any loss under any provision of this Ordinance.

 (3)  Where the assessee has no income other than the income referred to in sub-section (1) in respect of which tax has been collected under sub-section (5AAB) of section 50, the tax so collected shall be deemed to be the final discharge of his tax liability under this Ordinance and he shall not be required to file the return of total income under section 55.

 (4)  Where an assessee while explaining the nature and source of any sum, investment, money, valueable article, excess amount or expenditure, referred to in section 13, takes into account any source of income which is subject to tax in accordance with the provision of this section, he shall not be entitled to credit of any sum as is in excess of an amount which if taxed at a rate or rates, other than the rate applicable to income chargeable to tax under this section, would have resulted in tax liability equal to the  tax payable in respect of income under this section.

 (5)  In a case to which sub-section (3) applies, an order under section 59A shall be deemed to have been made in respect of income referred to in sub-section (1).

(1)   Notwithstanding anything contained in this Ordinance or any other law for the time being in force, where no tax is payable or paid by a company or a registered firm, an individual, an association of persons, an unregistered firm or a Hindu undivided family resident in Pakistan or the tax payable or paid is less than one-half per cent of the amount representing its turnover from all sources, the aggregate of the declared turnover shall be deemed to be the income of the said company or a registered firm, an individual, an association of persons, an unregistered firm or a Hindu undivided family and tax thereon shall be charged in the manner specified in sub-section (2).

Explanation.- For the removal of doubt, it is declared that the expressions "where no tax is payable or paid" and "or the tax payable or paid" apply to all cases where tax is not payable or paid for any reason whatsoever including any loss of income, profits or gains or set off of loss of earlier years, exemption from tax, credits or rebates in tax, and allowances and deductions (including depreciation) admissible under any provision of this Ordinance or any other law for the time being in forced.

(2)   The company or a registered firm, an individual, an association of persons, an unregistered firm or a Hindu undivided family referred to in sub-section (1) shall pay as income tax-

(a)    an amount, where no tax is payable or paid, equal to one-half per cent of the said turnover; and

(b)    an amount, where the tax payable or paid, is less than one-half per cent of the said turnover, equal to the difference between the tax payable or paid and the amount calculated in accordance with clause (a).

Explanation: For the removal of doubt it is declared that "turnover" means the gross receipts, exclusive of trade discount shown on invoices or bills, derived from the sale of goods or from rendering, giving or supplying services or benefits or from execution of contracts.

(3)    Nothing in this section shall apply to an individual, an association of persons, an unregistered firm or a Hindu undivided family in respect of any assessment year commencing on, or after, the first day of July, 2001.

 

 

Notwithstanding anything contained in this Ordinance, or any other law for the time being in force, the tax collected under sub-section(5) of section 50 on import of edible oils shall be deemed to be the minimum amount of tax payable under this Ordinance and where the final tax liability determined under this Ordinance exceeds the amount collected under the said sub-section, the said amount shall be adjustable against such liability.