AMENDEMENT IN SECOND SCHEDULE TO THE INCOME TAX ORDINANCE, 2001 VIDE SRO.17 (I)/2014 DATED 07-01-2014.

NOTIFICATION

(Income Tax)

The following amendments/additions have been made by FBR through SRO.17 (I)/2014 dated 07-01-2014:

In Part IV of the Second Schedule to the Income Tax Ordinance, 2001, two new clauses (89) and (90) have been added.

Clause (89) By virtue of insertion of clause (89) the following category of persons shall not be liable to pay advance tax @ 5% of the amount of fee to an educational institution u/s 236I:

(a)    the Federal Government or a Provincial Government;

(b)   an individual entitled to privileges under the United Nations (Privileges and Immunities) Act, 1948 (XX of 1948);

(c)    a foreign diplomat or a diplomatic mission in Pakistan; or

(d)   a person who is a non-resident and:

(i)                 furnishes copy of passport as an evidence to the educational institution that during previous tax year, his stay in Pakistan was less than one hundred eighty-three days;

(ii)               furnishes a certificate that he has no Pakistan-source of income; and

(iii)             fee is remitted directly from abroad through normal banking channels to the bank account of the educational institution.

Clause (90) Through this clause the following category of persons shall not be liable to pay advance tax @ 10% of the amount of bill to the prescribed person who arranges or provides a marriage hall, marquee, hotel, restaurant, commercial lawn, a community place etc. for a function. Furthermore, the said category of persons shall not be under an obligation to pay advance tax where the food, service or any other facility is provided to them by any other person u/s 236D:

(a)    the Federal Government or a Provincial Government;

(b)   an individual entitled to privileges under the United Nations (Privileges and Immunities) Act, 1948 (XX of 1948);

(c)    a foreign diplomat or a diplomatic mission in Pakistan.