Ordinance (general), as published 30 June 2021
This is the Ordinance (general) as it stood on 30 June 2021. It runs to 16 pages and contains 2 sections, with 0 amendment footnotes.
What this document is
Published by the Federal Board of Revenue as part of the Ordinance (general) collection. A consolidation of this kind folds every amendment made up to its cover date into the text, so it shows the law as it stood on 30 June 2021 rather than as originally enacted.
The date above was taken from the file name rather than a consolidation statement on the cover, so treat it as approximate.
The shape of this version
The operative text holds roughly 3,119 words across 2 sections.
What changed since the previous version
Against the version published 30 June 2021, this one has 2 new sections and 1 that no longer appear.
New in this version
- section 3, Amendments of the Sales Tax Act, 1990
- section 4, 2001)
No longer present
These appeared in the previous version and not in this one. That usually means omission by a later law, though it can also mean a heading was formatted in a way the extraction did not recognise.
- section 65G, Tax credit for specified industrial undertakings
The source file
| File name | Tax Laws (Third Amendment) Ordinance, 2021.pdf |
| Pages | 16 |
| Size | 3.22 MB |
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| Position in this collection | 7 of 10 |
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The full text of this version
All 2 sections as they appear in this document, reproduced from the source PDF. Amendment footnotes follow at the end.
3. Amendments of the Sales Tax Act, 1990
In the Sales Tax Act, 1990, the
following further amendments shall be made, namely:-
(1) in section 3,-
(a) in sub-section (7), for the full stop at the end, a colon shall be
substituted and thereafter the following proviso shall be added,
namely:-
“Provided that in case of the online market place facilitating
the sale of third party goods, the liability to withhold tax on taxable
supplies of such party at the rates specified in column (4) against S.
No. 8 of the Eleventh Schedule to this Act, shall be on the operator
of such market place.“, and
(b) after sub-section (9AA), the following new sub-section shall be
added, namely:-
“(10) Notwithstanding anything contained in this Act, the
Board may, by notification in the official Gazette, require any
person or class of persons to integrate their invoice issuing
machines with the Board’s computerized system for real time
reporting of sales in such mode and manner and from such date
as may be prescribed.“,
(2) after section 14, the following new section 14A shall be added, namely:-
“14A. Discontinuance of gas and electricity connections._
Notwithstanding anything contained in this Act or any other law for the
time being in force, the Board shall have power through sales tax general
order to direct the gas and electricity distribution companies for
discontinuing the gas and electricity connections of any person who falls in
the following categories, namely:-
(a) any person, including tier-1 retailers, who fails to register for
sales tax purpose, or
(b) notified tier-1 retailers registered but not integrated with the
Board’s computerized system:
Provided that upon registration or integration, as the case may be,
of the above said persons, the Board shall notify the restoration of their
gas or electricity connection through sales tax general order“;
(3) in section 33, in the Table, in column (1),-
(a) against S. No.25,
in column (2), for the expression “sub-section (9A) of section
3 or section 40C, as the case may be“, the expression
“section 40C” shall be substituted; and
in column (3), the expression “sub-section (9A) of section 3
and“ shall be omitted; and
(b) after S. No. 25 and entries relating thereto in columns (2) and (3),
amended as aforesaid, the following new S. No. 25A and
corresponding entries relating thereto shall be inserted, namely:-
Sub-section
(9A)
of
section 3
25A. A person required
Such person shall be liable
to integrate his
to pay-
business
as
stipulated
under
sub-section (9A) of
section 3, who fails
to
get
himself
registered
under
the Act, and if
registered, fails to
integrate in the
penalty
of
five
hundred thousand
rupees
default;
for
first
penalty
of
one
million rupees for
second default after
fifteen days of order
manner as required
for first default;
under the law and
rules
made
thereunder.
penalty of two
million rupees for
third default after
fifteen days of order
for second default;
penalty of three
million rupees for
fourth default after
fifteen days of order
for third default:
Provided that if such
person fails to integrate his
business within fifteen
days of imposition of
penalty for fourth default,
his business premises
shall be sealed till such
time he integrates his
business in the manner as
stipulated under sub-
section (9A) of section 3:
Provided further that
if the retailer integrates his
business with the Board’s
computerized
system
before
imposition
of
penalty for second default,
penalty for first default
shall be waived by the
Commissioner.
in the Fifth Schedule, in column (1), against S. No. 17, in column (2), the
words “excluding that sold in retail packing under a brand name or a
trademark“ shall be omitted;
in the Sixth Schedule, in column (1),-
(a) in Table-1,-
(i) (ii)
against Serial No. 15, in column (2), the expression “(except
fruits imported from Afghanistan)“ shall be omitted;
against Serial No. 159, in column (2), for the expression “30th
June, 2021“, the expression “31st December, 2021” shall be substituted; and
against Serial No. 160, in column (2), for the expression “30th
June, 2021“, the expression “31st December, 2021” shall be substituted;
(b) in Table-3, in the Annexure, in column (1), -
(e) after S. No. 2 and entries relating thereto in columns (2), (3)
and (4), the following new S. No. 2A and entries relating
thereto in columns (2), (3) and (4) shall be inserted, namely:-
“2A. The following raw
materials
imported
by
registered
manufacturer of auto
disabled syringes:
This concession is
available
registered
to
manufacturers
of
auto
disabled
Printing paper
Polypropylene
(3)Propylene .
copolymers
4802.5510 syringes with quota
3902.1000 determination by
3902.3000 1000 and subject
to NOC from
Plasticized
3904.2200
Ministry of National
Epoxide 3907.3000
Health
Services
Resins
Bioxially 3920.2040
Regulation
and Coordination.“, and
Oriented
Polypropylene
(BOPP
laminated)
film,
(ii) against S. No. 21, for the entry in column (4), the expression
“import of POS machines including credit/debit cards
terminals and retailer cash register.“ shall be substituted;
(6) in the Eighth Schedule, in Table-1 in column (1), -
S. No. 60 and entries relating thereto in columns (2), (3), (4) and (5) shall be omitted;
after serial 66 and entries relating thereto in columns (2), (3), (4)
and (5), the following new S. No. 66A and corresponding entries
relating thereto shall be inserted, namely:-
“66A
Supplies
excluding
Respective
those specified in S.
headings
No. 66, as made from retail
outlets
integrated
with
16%
If payment is
made through
digital mode.
Board’s
Computerized
System for real time
reporting of sales
’ Import of remeltable
66B. scrap
Respective
headings
14%
If imported by
steel melters.“
; and
(c) after S. No. 74 and entries relating thereto in columns (2), (3), (4)
and (5), the following new S. No. and entries relating thereto in
columns (2), (3), (4) and (5) shall be added, namely:-
Import of electric 8703.8090
5%
vehicle in CBU
conditions
Business
business
transactions
to
Respective
headings
specified by the
Board through a
notification in official
Gazette subject to
such conditions and
restrictions
as
specified therein.
16.9%
If payment
is
made
through
digital
mode.“.
4. 2001)
Amendments of the Income Tax Ordinance, 2001 (Ordinance XLIX of
In the Income Tax Ordinance, 2001 (XLIX of 2001), the following further
amendments shall be made, namely: -
(1) in section 21,-
(a) (b)
in clause (I), after the word “any expenditure”, occurring for the first
time, the expression “by a taxpayer not being a company” shall be
inserted;
after clause (I), amended as aforesaid, the following new clause
shall be inserted, namely: -
“(la) any expenditure by a taxpayer being a company for a
transaction, paid or payable under a single account head
which, in aggregate, exceeds two hundred and fifty thousand
rupees, made other than by digital means from business
bank account of the taxpayer notified to the Commissioner
under section 114A:
Provided that this clause shall not apply in the case of-
expenditures not exceeding twenty-five thousand
rupees;
(ii) expenditures on account of -
utility bills;
freight charges;
travel fare;
postage; and
payment of taxes, duties, fee, fines or any
offfer statutory obligation; and
(c) in clause (m), after the word “account” the expression “or through
digital mode“ shall be inserted;
in section 53, in sub-section (2), after the word “The” occurring for the first
time the expression “Federal Government or the” shall be inserted;
in section 111, after sub-section (4), the following new explanation shall be
added, namely: -
“Explanation. - For removal of doubt, it is clarified that the remittance
through money service bureaus (MCBs), exchange companies (ECs)
and money transfer operators (MT0s) such as Western Union, Money
Gram and Ria Finance or other like entities shall be deemed to constitute
foreign exchange remitted from outside Pakistan through normal banking
channels as delineated under this sub-section.“;
(4) after section 114A, the following new section shall be inserted, namely: -
“1148. Powers to enforce filing of returns. - (1) Notwithstanding anything contained in any other law for the time being in force, the Board
shall have the powers to issue income tax general order in respect of
persons who are not appearing on ATL but are liable to file return under
the provisions of this Ordinance.
(2) The income tax general order issued under sub-section (1)
may entail any or all of the following consequences for the persons
mentioned therein, namely:-
disabling of mobile phones or mobile phone sims;
discontinuance of electricity connection; and
discontinuance of gas connection.
(3) The Board or the Commissioner having jurisdiction over the person mentioned in the income tax general order may order restoration of
mobile phones, mobile phone stms and connections of electricity and gas,
in cases where he is satisfied that -
the return has been filed; or
person was not liable to file return under the provisions
of this Ordinance.
(4) No person shall be included in the general order under sub-
section (1) unless following conditions have been met with, namely:-
notice under sub-section (4) of section 114 has been
issued;
date of compliance of the notice under sub-section (4)
of section 114 has elapsed; and
in
(c) the person has not filed the return.
(5) The action under this section shall not preclude any other
action provided under the provisions of this Ordinance.“;
(5) after section 175A, the following new section shall be inserted, namely: -
“175B. National Database and Registration Authority (NADRA).
The National Database and Registration Authority shall, on its own
motion or upon application by the Board, share its records and any
information available or held by it, with the Board, for broadening of the tax
base or carrying out the purposes of this Ordinance.
The National Database and Registration Authority may-
submit proposals and information to the Board with a view to
broadening the tax base;
identify in relation to any person, whether a taxpayer or not -
(a) income, receipts, assets, properties, liabilities,
expenditures, or transactions that have escaped
assessment or are under-assessed or have been
assessed at a low rate, or have been subjected to
excessive relief or refund or have been misdeclared
or misclassified under a particular head of income or
otherwise;
(b) the value of anything mentioned in sub-clause (a) of
clause (ii), if such value is at variance with the value
notified by the Board or the district authorities, as the
case may be, or if no such value has been notified
the true or market value; and
(iii) enter into a memorandum of understanding with the Board
for a secure exchange and utilization of a person’s
information.
(3) (he Board may use and utilize any information
communicated to it by the National Database and Registration Authority
and forward such information to an income tax authority having jurisdiction
in relation to the subject matter regarding the information, who may utilize
the information for the purposes of this Ordinance.
The National Database and Registration Authority may
compute indicative income and tax liability of anyone mentioned under
sub-sections (1) or (2) by use of artificial intelligence, mathematical or
statistical modeling or any other modern device or calculation method.
The indicative income and tax liability computed by the
National Database and Registration Authority under sub-section (4) shall
be notified by the Board to the person in respect of whom such indicative
income and tax liability has been determined, who shall have the option to
pay the determined amount on such terms, conditions, installments,
discounts, reprieves pertaining to penalty and default surcharge, and time
limits that may be prescribed by the Board.
In case the person against whom a liability has been
determined under sub-section (4), does not pay such liability within the
time prescribed under sub-section (5), the Board shall take action under
this Ordinance, upon the basis of tax liability computed under sub-section
(4).
If the person against whom the liability has been determined
under sub-section (4) pays such liability in terms of sub-section (5), such
payment shall be construed to be an amended assessment order under
section 120 or sub-section (1) of section 122 or sub-section (4) of
section 122 as the case may be.
For the purposes of sub-sections (4) and (5), the Board may
prescribe the extent of installments, reprieves pertaining to penalty and
default surcharge and time limits.“;
(6) in section 182, in sub-section (1), in the Table, in column (1),-
(a) against S. No. 1, for the entry in column (3), the following shall be
substituted, namely:-
“Such person shall pay a penalty equal to higher of -
0.1% of the tax payable in respect of that tax year for each
day of default; or
rupees one thousand for each day of default:
Provided that minimum penalty shall be -
rupees ten thousand in case of individual having seventy-
five percent or more income from salary; or
rupees fifty thousand in all other cases:
Provided further that maximum penalty shall not exceed two
hundred percent of tax payable by the person in a tax year:
Provided also that the amount of penalty shall be reduced by 75%,
50% and 25% if the return is filed within one, two and three months
respectively after the due date or extended due date of filing of return
as prescribed under the law;
Explanation.- For the purposes of this entry, it is declared that the expression “tax payable” means tax chargeable on the taxable income
on the basis of assessment made or treated to have been made under
section 120, 121, 122 or 122D.
(b) S. No.14 and entries relating thereto in columns (1), (2), (3) and (4)
shall be omitted and shall always be deemed to have been so omitted
since the commencement of the Income Tax Ordinance, 2001 (XLIX
of 2001).“;
section 198 shall be omitted and shall always be deemed to have been so
omitted since the commencement of the Income Tax Ordinance, 2001
(XLIX of 2001);
in section 216, in sub-section (3), clause (kb) shall be omitted;
in section 235, -
(a) after sub-section (1), the following new sub-section shall be added,
namely: -
“(1A) In addition to tax collectable under sub-section (1), there shall
be collected additional advance tax at the rates given in the Division
IV of Part-IV of the First Schedule from professionals not appearing
on ATL and operating from residential premises having domestic
electric connections from electricity distribution companies.
For the purposes of this sub-section professionals include
accountants, lawyers, doctors, dentists, health professionals,
engineers, architects, IT professionals, tutors, trainers and other
persons engaged in provision of services.“,
(b) in sub-section (4), in clause (c), after the word “company”, the
I“ •
expression “or domestic consumer” shall be inserted.;
(10) In the First Schedule, in Part IV, in Division IV, after the omitted clause (2),
the following new clause shall be inserted, namely: -
“(2A) The rate of additional advance tax under sub-section (1A) of
section 235 shall be collected from the gross amount of the electricity bills
at the rates given below: -
Description
Rate of additional tax
Sr.
No
(1) (2)
1 Where the bill does not exceed 10,000
rupees
2 Where the bill exceeds 10,000 rupees
but does not exceed 20,000 rupees
3 Where the bill exceeds 20,000 rupees
but does not exceed 30,000
4 Where the bill exceeds 30,000 rupees
but does not exceed 40,000
5 Where the bill exceeds 40,000 rupees
but does not exceed 50,000
6 Where the bill exceeds 50,000 rupees
but does not exceed 75,000
7 Where the bill exceeds 75,000 rupees
(3) 5%
10%
15%
20%
25%
30%
35%“;
(11) in the Second Schedule, -
(A) in Part I, in clause (66), in sub-clause (1), in the Table 1, in column (1),
(i) S. Nos. (xlx) to (xlxv) shall be re-numbered as S. Nos. (I) to (Iv)
respectively;
(ii) after S No. (Iv), re-numbered as aforesaid, and entries relating
thereto in column (2), the following new entry shall be added,
namely: -
“Ivi
Pakistan Mortgage Refinance Company Limited.“,
(B)
in Part II,
in clause (24C), after the word “cement” the expression
steel“ shall be inserted; and
in clause (24D), after the word “cement” the expression “, steel”
shall be inserted; and
(C)
in Part IV, in clause (11A), after the sub-clause (xliv), following new
sub-clause shall be added, namely: -
“(xlv) Mobile phone manufacturers engaged in the local
manufacturing of mobile phone devices.“,
in the Seventh Schedule, in rule 6C, in sub-rule (6A), for the word “assets”,
wherever occurring, the word “gross advances” shall be substituted; and
in the Thirteenth Schedule, in the Table 1, in column (1), after S. No. 62
and entries relating thereto in column (2), the following S. No and entry
relating thereto shall be added, namely: -
“63
All entities mentioned in Table - I of clause (66) of Part
I of the Second Schedule of the Ordinance.“.
DR. ARIF ALVI, President.
RAJA NAEEM AKBAR, Secretary.
/14).71Q
474—7.-’)–1
AMER ASLAM Printing / Publication Officer Ministry of Law and Justice Government of Pakistan Islamabad