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CONTENTS

PREFACE

INCOME TAX..

3
-

INCOME TAX SCHEDULES

SALES TAX

14

FEDERAL EXCISE DUTY

18

ISLAMABAD CAPITAL TERRITORY ORDINANCE..

20

PUNJAB FINANCE ACT

21

KPK FINANCE ACT

24

PREFACE
Finance Acts 2016
This document gives a brief insight of significant amendments made through Finance Acts 2016
and SROs relating toSales Tax. This document also presents significant changes made in fiscal
laws through respective Provincial Finance Acts except for Sindh and Balochistan. Changes
made in Custom laws are also not included in this document.
In order to understand the impact of a particular change, reference should be made to the specific
wordings in the relevant statutes. Expert opinion on specific change should also be sought before
taking decision having major economic significance.
This document can also be accessed on our website www.pkf.com.pk

July 15, 2016

INCOME
TAX
Section 4B

For the Tax Year 2015, Banking Company, and


Other Person having income equal to or
exceeding Rs.500 million, were subjected to
Super Tax for rehabilitation of Temporarily
Displaced Persons; at the rate of 4% and 3%
respectively. Final tax related income will be
calculated through imputable tax basis for the
calculation of Super Tax chargeability. Now this
tax has been extended for tax year 2016 also
Further it is clarified that the brought forward
depreciation and business losses shall not be
taken into account while calculating the above
referred income.
Section 7C and 7D
Tax on builders and developers has been
fixed on the basis of measurement of land and
buildings covered area taking into consideration
the locality where it is situated and have been
included in final tax regime. The Board shall
prescribe rules for mode and manner for
payment and collection of tax. Further the Board
shall also prescribe rules for granting approval of
payment plan of taxes and other related matters.
However, this fixed tax will be applicable for the
projects initiated and approved after 1st July,
2016. Consequently sections 113A and 113B
have been omitted.
Section 15 (6) and 15 (7)

Income from property of Individuals and

AOP shall now be charged as separate block of


income. The slabs of tax rates have been
devised to calculate tax on gross rentals ranging
from Rs.200,000 to Rs.2,000,000 from 5% to
20%. The rental income of Rs.200,000 shall be
exempted, provided the tax payer has no other

source of income. However the property income


of a company shall be subjected to normal tax
and shall be calculated after deductions allowed
u/s 15A.
Section 21
The scope of inadmissibility of expenditure
claimed on account of non-deduction of
withholding tax has been enlarged. Now any
expenditure claimed which is subject to any
withholding tax shall be disallowed incase tax is
not withheld and deposited. It covers the whole
stream of withholding tax. However, while
disallowing the purchases maximum 20% of
the purchases of raw material and finished
goods can be disallowed on the default of nondeduction of withholding tax. An opportunity has
been given to tax payer to pay the defaulted
amount u/s 161 or 162 and such expenditure
shall be allowed after payment of withholding
tax.
Another amendment has been made to restrict
the allowance of expenditure in respect of sales
promotion, advertisement and publicity by
pharmaceutical manufacturers up to 5% of
their turnover. Normally these companies spend
huge amounts under these heads.
Section 22
An explanation has been added whereby
notional charge of depreciation and initial
allowance has been made compulsory for the
persons whose income is exempted for certain
periods. Now the written down value of building,
furniture, machinery used for business purpose
of such units, after the end of exempted period,
shall be reduced by the accumulated
depreciation and initial allowance which shall be
deemed to have been so allowed.
Section 37A
An explanation has been added to clarify that
derivative products include future commodity
contracts entered into by the members of

Pakistan Mercantile Exchange whether or not


settled physically.

ceiling of profit on debt has been increased from


rupees one million to rupees two million.

Section 53(2)

Section 64AB

The powers of Federal Government have


been enhanced to grant exemption or
reduction of tax rates or tax liability or waive off
operation of any provision of this Ordinance to
any international financial institution operating
under any agreement with Government of
Pakistan subject to approval of Economic
Coordination Committee.

Another deductible allowance has been


introduced for education expenses. Any
individual having taxable income less than
rupees one million shall be entitled to a
deductible allowance subject to maximum ceiling of
5% of the total tuition fee or 25% of taxable
income whichever is less. The individual
claiming this deduction has to submit NTN or
name of the educational institution. However,
this allowance shall not be taken into account for
computation of tax deducted under Section 149
of Income Tax Ordinance, 2001.

Section 59B(1A)
The Group Relief where loss of a subsidiary
company is surrendered to holding company for
set off against its profit shall now be computed
as percentage of shareholding held by the
holding company. Previously total loss available
can be surrendered to another group company.
Section 62A
A new tax credit has been introduced for
investment in health insurance for
individual and AOP being filer deriving income
from salary or business; provided the insurance
premium is paid to any insurance company
registered with SECP. The maximum ceiling of
tax credit is 5% of taxable income or Rs.100,000
whichever is less.
Section 63(2)
An amendment has been made in computation
of tax credit for investment in pension fund
whereby the additional contribution of 2% for
each year of age exceeding 40 years shall be
allowed upto 30th June 2019 provided that total
contribution shall not exceed 30% of taxable
income.
Section 64A(2)
An amendment has been made in computation
of deductible allowance for profit on debt
for house acquired through loan from banks,
NBFIs and listed companies. Now the maximum

Section 64B and 65A to 65E


Various Tax credits were allowed to the
industries under different schemes, the closing
dates of such schemes were 30th June 2016.
All such schemes have been extended upto 30th
June 2019. These includes:

Tax credit for employment


generation by manufacturer;
Tax credit for investment through equity
in purchase of plant and machinery for
the purpose of extension or

expansion or BMR;
Tax credit for newly established
industrial undertakings; and

Tax credit for industrial under takings


established before 1st July 2011.

Condition of 100% equity investment has also


been changed to 70% for claiming tax credit for
new project or expansion project.
The manufacturer registered under Sales Tax
Act, 1990 selling its 90% goods to a registered
person shall now be entitled to tax credit of 3%
of tax payable. Earlier it was 2.5%.
In order to attract the companies for listing
with Stock Exchange, tax credit of 20% of

the tax payable shall now be allowed in the year


of enlistment and also for the following tax year.

been allowed for the submission of required


information to the Commissioner.

Section 67

Section 113

The scope of apportionment of common


expenditure between various heads of income
has been widened to include deductions and
allowances.

Minimum Tax is chargeable in the case where

Section 68
The fair market value of any property, rent,
asset, service, benefit or perquisite shall be
determined by the Commissioner without
regard to any restriction on transfer. Now the
department can disregard the value of registered
sales deed executed on the basis of value fixed
or notified by the provincial authority for stamp
duty. The courts have disregarded departments
valuation in the presence of registered deed and
this amendment is an attempt to undo such
decisions.
Notwithstanding anything above, fair market
value of immovable property will be determined
on the basis of valuation made by a panel of
approved valuers of the State Bank of Pakistan.
Section 107
Federal Government has been empowered to
enter into international tax treaty, automatic

tax information exchange agreement,


multi-lateral convention and intergovernmental agreement for avoidance of

double taxation or prevention of fiscal


evasion.These provisions have been revamped
in the light of recent agreements entered into by
the government of Pakistan and other foreign
countries.
Section 108
Procedure with respect to information and
records for the transaction with associates
has been standardized with the objective to ensure
efficient proceedings under this section. 30 days
time, with an extendable period of 45 days, has

tax payable, calculated on the basis of declared


income, is less than 1% of turnover. This
minimum tax was applicable to every company
and an individual or AOP having turnover of
Rs.50 million or above. Now this threshold has
been lowered to Rs.10 million. It means now
every tax payer individual or AOP whose
turnover is Rs.10 million or above in tax year
2017 and onwards shall be subject to minimum
tax. Another amendment has been made
whereby the companies suffering gross loss
shall now be subjected to Minimum Tax. An
explanation has also been added to exclude
tax payable or paid under Final Tax Regime
and super tax paid u/s 4B for the purpose of
calculation of Minimum Tax.
Section 114

Revision of tax return was allowed within 60


days of filing of original return to correct any
error or omission without permission from
Commissioner. Further the Commissioners
approval for revision was deemed to have been
granted if no order of approval is issued by the
Commissioner within 60 days of filing of request
for revision. Now it has further been relaxed to
allow a tax payer for upward revision of return
without approval of Commissioner.
A new proviso has been added to section 114
empowering the FBR to issue a notice for filing
of return of income for one or more of the last
ten completed tax years in case of a person who
has not filed return for any of the last five
completed years. The retrospective impact of
this amendment to past and closed years shall
create confusion to be settled by the Courts.
Section 122C

Provisional Assessment u/s 122C can be

made by the Commissioner against persons who

do not file tax return voluntarily or fail to file


return in response to notice from Commissioner.
However, if such person files the return and
wealth statement and reconciliation within 45
days of the receipt of order, the assessment is
abated. Now a further condition has been
imposed that such person should also present
their accounts and documents for conducting
audit of income tax affairs for that tax year.
Section 134A
With a view to improve the Alternate Dispute
Resolution Mechanism, following
amendments have been introduced:
Commissioner Inland Revenue is included in
committee instead of Additional Commissioner
Inland Revenue;
Board is required to pass an order on the
recommendation of the Committee within ninety
days instead of forty five days; and
In case order is not passed by the Board within
ninety days, the recommendation of the
committee shall be treated as an order passed
by the Board.
Section 140
No action under the section 140 will be taken if
the appeal filed by the taxpayer relating to such
tax is pending before the Commissioner
(Appeals) subject to the condition that 25% of the
said tax is paid by the taxpayer. This means that
if 25% of demand has been paid, the recovery
by way of freezing of bank accounts
cannot be initiated for balance impugned
demand till disposal of appeal.
In cases where the taxpayer would not be willing
to pay 25% of the said tax, he can approach
the Commissioner (Appeals) / High Court for
stay of full demand.
Section 147

Advance tax for current year is calculated on

the basis of last assessed tax liability. An


explanation has been added to clarify that the
tax assessed also includes Minimum Tax and
Alternate Corporate Tax.
Section 147A

Persons registered with the Provincial


Sales Tax Authorities who were non-filers
as on 30th June of the previous tax
year shall be liable to pay adjustable advance

tax on monthly basis at the rate of three percent


(3%) of the turnover declared before the
provincial revenue authority.
Section 152(2A)

Exemption available to commercial importers in


clause 47A, part IV of Second Schedule for
section 153 is extended to section 152. Hence,
no advance tax is required to be deducted from
payment to permanent establishment of nonresident in respect of goods imported and sold in
the same condition if tax under section 148 is
duly deducted and paid.
Section 152A
The scope of withholding tax has been widened
and now payments to foreign produced
commercials to non-resident person shall be
subjected to tax @20% which shall be final
discharge of tax liability of such non-resident
person.
Section 153
An amendment in section 153 is introduced to
treat withholding tax on payments to electronic
and print media for advertising services shall
be final tax with effect from 1st July 2016.
Another amendment is made to add cotton
ginners in the ambit of withholding tax.
Previously they were excluded if they deposit tax
on their own, on payments made to them.

Section 169(3)
An incentive has been offered to non-filer to
file the tax return, where the tax collected or
deducted is final tax and higher rate of
withholding has been prescribed for non-filer.
The excess tax collected from non-filer shall be
adjustable and can be claimed as refund by filing
of tax return.

Section 236A
Tax collected on auction of lease right to
collect tolls shall be final tax.
Section 236C

Advance tax on sale of immovable


property shall not be collected if property is

Section 170(2)

held for a period exceeding five years.

The period within which refund application


u/s 170 can be filed has been extended to three
years from two years.

Section 236U

Section 182
The banks and financial institutions are obliged
to file certain information as prescribed by the
Board for non-residents for the purpose of
automatic exchange of information under

bilateral agreement or multilateral


convention. Now any person who does not file

the required statement shall be subjected to


penalty of Rs.2,500, per day with minimum of
Rs.10,000.
Sections 231A& 236P

An explanation has been added in section 231A


and 236P whereby the withholding tax on cash
withdrawal shall be applicable if aggregate
withdrawal from all bank accounts of a person
exceeds Rs.50,000 in a single day.

A new section is introduced to collect advance


tax at the time of collection of insurance
premium from non-filer in respect of general
insurance @ 4% and life insurance @ 1% if
premium exceeds Rs.200,000. The insurance
premium collected through agents of insurance
company shall also be treated as having been
collected by the insurance company. Advance
tax collected under this section shall be
adjustable.
Section 236V
A new section is introduced to collect advance tax
on the value of minerals extracted, produced,
dispatched and carried away from the licensed
area. The rate for collection of tax from filers is
zero percent (0%) while non-filers shall pay 5%
adjustable income tax to the Provincial Revenue
Authority collecting royalty from the persons
engaged in extraction of minerals.

Section 231B
Advance tax on registration of private motor
vehicles shall not be applicable to purchase of

5 years old vehicles.

Every leasing company or scheduled bank or


investment banks or DFI or modaraba, at the
time of leasing a motor vehicle to a nonfiler shall collect advance tax @3% of the value
of motor vehicle.

Income Tax
Schedules

Taxable income
from
1,400,001

1,500,000 Rs. 79,500 + 12.5% of amount


exceeding 1,400,000

1,500,001

1,800,000

1,800,001

2,500,000 Rs. 137,000 + 17.5% of amount


exceeding 1,800,000

2,500,001

3,000,000

3,000,001

3,500,000 Rs. 359,500 + 22.5% of amount


exceeding 3,000,000

3,500,001

4,000,000

7%of amount exceeding


400,000

4,000,001

7,000,000 Rs. 597,000 + 27.5% of amount


exceeding 4,000,000

7,000,001

1st Schedule
Tax Rates for Business Individual and
AOPs
Taxable income
from
0
400,001

upto
400,000
500,000

Rate
0%

500,001

750,000

Rs. 7,000 + 10% of amount


exceeding 500,000

750,001

1,500,000

Rs. 32,000 + 15% of amount


exceeding 750,000

1,500,001

2,500,000 Rs. 144,500 + 20% of amount


exceeding 1,500,000

2,500,001

4,000,000 Rs. 344,500 + 25% of amount


exceeding 2,500,000

4,000,001

6,000,001

6,000,000 Rs. 719,500 + 30% of amount


exceeding 4,000,000
and above

Rs. 1,319,500 + *35% of


amount exceeding 6,000,000

* for AOPs (Professional firms prohibited from incorporating by


any law) rate of tax shall be at 32% from tax year 2016 and
onwards.

Tax Rates For Salaried Individual


Taxable income

from

upto

400,000

Rate

upto

Rate
0%

400,001

500,000

2%of amount exceeding


400,000

500,001

750,000

Rs. 2,000 + 5% of amount


exceeding 500,000

750,001

1,400,000

Rs. 14,500 + 10% of amount


exceeding 750,000

and above

Rs. 92,000 + 15% of amount


exceeding 1,500,000

Rs. 259,500 + 20% of amount


exceeding 2,500,000

Rs. 472,500 + 25% of amount


exceeding 3,500,000

Rs. 1,422,000 + 30% of amount


exceeding 7,000,000

Tax Rates For Companies


Description

Rate

Banking company

35%

Other than banking company- TY- 2016

32%

Other than banking company- TY- 2017

31%

Other than banking company- TY- 2018

30%

Super Tax Rates


Description

Rate

Banking company

4%

Other person having income equal to or


exceeding Rs. 500 Million

3%

Tax Rates For Profit on debt


Taxable income
from

upto

Rate

25,000,000

10%

25,000,001

50,000,000

Rs. 2,5000 + 12.5% of


amount exceeding 25 Million

50,000,001

and above

Rs. 5,625,000 + 15% of amount


exceeding 50 Million

Tax Rates for Property Income In case of


Individual & AOPs

Sec.

Category

The same rates shall also be applicable for


withholding tax under section 155.
Taxable Income

Filer

Non
Filer

Manufacturers covered under


SRO 1125( I)/2011, dated 31122011.
Import of Potassic Fertilizer
Imports of Urea fertilizer
Import of gold
Import of cotton
Import of LNG- designated
buyers

Rate

from

upto

200,000

0%

200,001

600,000

5% of the gross amount of


rent exceeding Rs.200,000

600,001

1,000,000

Rs.20,000 + 10 % of the
gross amount exceeding
Rs.600,000

1,000,001

2,000,000

Rs.60,000 + 15 % of the
gross amount exceeding
Rs.1,000,000

2,000,001

and above

Rs.210,000 + 20% of the


gross amount exceeding
Rs.2,000,000

1%

1.5%

Import of pulses

2%

3%

Commercial importers covered under

3%

4.5%

4.5%

6.5%

5.5%

8%

SRO 1125 (I) / 2011, dated 31-122011


Ship breaker on import of ship

Tax to be collected from every


importer of goods on the value of
goods.
a)

Sec.
37A

Category

Filer

Non
Filer

Stock Funds

10%

25%

covered

Other than Stock Funds

25%

25%

Capital Gains Tax - Individuals & AOPs 10%

10%

Holding period less than 12 Months 15%

18%

Holding period 12 to 24 Months

12.5%

16%

Holding period more than 24


Months but purchased after 01-072012

7.5%

11%

Security purchased before 01-072012

0%

Future Commodity Contracts


Industrial undertaking importing

b)

all other cases of companies

5.5%

8%

c)

In the case of persons other

6%

9%

than those covered in a & b

Capital Gains Tax on Securities

148

undertaking not otherwise

Capital Gains Tax - Company


-

In the case of Industrial

above
150

Dividend income

12.5%

20%

151

Profit on Debit

10 %

17.5%

152

Payments to Permanent
Establishment of Non- Residents
4%

6%

4.5%

6.5%

8%

12%

10%

15%

2%

2%

7%

12%

7%

12%

10%

10%

supply of goods

- Others
supply of services

5%

transport services
execution of
contract

for its own use.

- Company
- Others

re-meltable steel (PCT Heading


72.04) and directly reduced iron

- Company
- Others

0%
5%

- Company

Sport persons

Sec.
153

Category

Filer

Non
Filer

231B

Payments to Residents
supply of goodssupply of goodsFMCG distributors

Company
Others
Company
Others

supply of services

Company
Others

transport services
execution of
contract

Sec.

Company

4%

6%

4.5%

6.5

3%

3%

3.5%

3.5%

8%

12%

10%

15%

2%

2%

7%

10%

7.5%

10%

10%

10%

Company

1.5%

12%

Others

Others
Sport Persons

231B

Electronic and Print Media


Services

1.5%

15%

Prize bonds winning


Other than prize bond winnings

15%
20%

20%
20%

156A

Commission on Petroleum
products

12%

15%

231A

Cash withdrawal exceeding Rs.


50,000/- in a day

0.3%

0.6%

156

231AA Other transaction with Bank


233

234

0.6%

Brokerage & Commission


Advertisements

10%

15%

Life insurance where


commission is >Rs.500,00
Others

8%

16%

12%

15%

Rs. 2.5

Goods Transport Vehicles


(per
kg)
Passenger Transport Vehicles
Seating capacity
>4<10
>10<20
20 or more
Token Tax
Engine Capacity (cc)
upto 1000
1001 to 1199
1200 to 1299
1300 to 1499
1500 to 1599
1600 to 1999
2000 and above

10

0.3%

236A
236B

Category

Filer

Non
Filer

Rates of Advance Tax on


Registration of Vehicles
Engine Capacity (cc)
Upto
850
851 to 1000
1001 to 1300
1301 to 1600
1601 to 1800
1801 to 2000
2001 to 2500
2501 to 3000

10,000
20,000
30,000
50,000
75,000
100,000
150,000
200,000

above 3000

250,000 450,000

Rates of Advance tax on


transfer of Vehicles
Engine capacity (cc)
up to
850
851 to 1000
1001 to 1300
1301 to 1600
1601 to 1800
1801 to 2000
2001 to 2500
2501 to 3000
above 3000
Sale by auction
Purchase of domestic air ticket

5,000
7,500
12.500
18,750
25,000
37,500
50,000
62,500
10%
5%

5,000
15,000
25,000
65,000
100,000
135,000
200,000
270,000
300,000
10%
5%

10,000
25,000
40,000
100,000
150,000
200,000
300,000
400,000

236C

Sale/transfer of immovable
property

1%

2%

236D

Functions and gatherings

5%

5%

236G

Sales of distributors, dealers


or wholesaler
Fertilizer

0.7%

1.4%

Other than Fertilizer

0.1%

0.2%

0%
2%

0%
4%

Nil

0.6%

236K

Purchase of immovable property


Value 0-3million
Exceeding 3 million

Rs. 4

236P

Transaction other than cash


through Bank (exceeding
50,000 in a day)

50
100
300

100
200
500

236Q

Tax on Machinery rental

10%

10%

Education expenses remitted


abroad

5%

5%

800
1,500
1,750
2,500
3,750
4,500
10,000

1,200
4,000
5,000
7,500
12,000
15,000
30,000

General
Life insurance exceeding
0.2 million/annum

4%

4%

1%

1%

Others

0%

0%

0%

5%

236R

Insurance premium
236U

236V

Extraction of minerals

Tax rates for builders and land developers

Builders

Location

For
Commercial
Buildings
Rate/Sq.ft

Karachi, Lahore
and Islamabad
Hyderabad,
Sukkur, Multan,
Faisalabad,
Rawalpindi,
Gujranwala,
Sahiwal,
Peshawar,
Mardan,
Abbottabad,
Quetta
Urban areas not
specified as
above

Rs.210

Rs.210

Rs.210

For Residential
Buildings
Area in
Sq.ft
Upto 750
7511500
1501 &
above

Rate/
Sq.ft
Rs.20
Rs.40
Rs.70

Upto 750

Rs.15

7511500

Rs.35

1501 &
above

Rs.55

Upto 750
7511500
1501 &
above

Rs.10
Rs.25
Rs.35

Land Developers
Location

For
Commercial
Plots
Rate/Sq.ft

Karachi, Lahore
and Islamabad
Hyderabad,
Sukkur, Multan,
Faisalabad,
Rawalpindi,
Gujranwala,
Sahiwal,
Peshawar,
Mardan,
Abbottabad,
Quetta
Urban areas not
specified as
above

Rs.210

Rs.210

Rs.210

For Residential
Plots
Area in
Sq.ft

Rate/
Sq.ft

Upto 750
7511500
1501 &
above

Rs.20

Upto 750

Rs.15

7511500

Rs.35

1501 &
above

Rs.55

Upto 750
7511500
1501 &
above

Rs.40

Minimum holding period for non-applicability of


Capital Gains Tax on disposal of immovable
property has been increased to five years from
two years. Tax at the rate of 10% is to be
applicable on such gains irrespective of its
holding period within five years. Previously,
10% and 5% slab rates were applicable
depending on the holding period of less thanone
year and more than one year but not more than
two years respectively.
Gain arising on the disposal of immovable
property by a person in a tax year to the Rental
REIT Scheme will be taxed at the rate of 5% upto
June 30, 2019 irrespective of holding period.
However, gain on sale of immovable property with
the object of development and construction of
residential building is already exempt from tax
upto Tax year 2020 under clause 99A, part I, 2nd
schedule.
Withholding tax deduction by Stock exchange
registered in Pakistanfrom itsmembers on sale &
purchase of shares has been increased to
0.02% from 0.01%.
Withholding tax on commercial
electricity consumers having monthly bill
exceeding Rs.20,000 has been increased from
10% to 12%.

Rs.70

Rs.10
Rs.25
Rs.35

11

2nd Schedule
Exemptions/Concessions
Introduced:

Exemption limit for other employees in


case of payment received by way of
gratuity or commutation of pension has
been increased from Rs.200,000 to
Rs.300,000.
Corporate rate for taxation shall be
reduced by 2% as specified in 1st
Schedule will be applied in case of
manufacturing listed company who has
been compliant with Shariah law and also
declared income for last 3 years and
dividend for last five years.

Exemption From Collection Of Tax


On Import Of Ships And Aircrafts

Collection of withholding tax at import


stage will not be applicable in the following
cases:
(a) Import of ships and other floating crafts
including tugs, survey vessels and other
specialized crafts purchased or bare-boat
chartered by a Pakistani entity and flying
Pakistani flag upto the year 2020 subject
to the condition that ships and crafts are
used for the purpose for which they were
imported. In case of ships and crafts used
for demolition purposes, the import tax will
be applicable.
(b) Import or acquisition of aircraft on wet
or dry lease by PIA with effect from March
19, 2015.

12

Tax exemption including minimum tax


provided to China Overseas Ports
Holding Company Limited for
operating the Gwadar port has been
extended to various other Chinese
companies, Furthermore, the income of
their lenders, contractors and investors

who will be working at the Gwadar Port


will also be exempt from tax.

Minimum tax exemption has been


provided to taxpayers establishing
transmission line project.

Subject to withdrawal of appeals/


references/petitions and payment of tax
liability outstanding till tax year 2015 by
June 30, 2016, income of Pakistan
Cricket Board derived from outside
Pakistan will be taxed at 4% of the gross
amount.

Exemption of IT Export services is


extended till June 30, 2019; provided that
80% of the export proceeds are brought
into Pakistan in foreign currency through
normal banking channels.

Fixed Tax Regime of Hajj Group


Operators is extended to Tax Year 2016.

Exemption from provisions of Section 111


for investments in Industrial
undertakings in various sectors is
extended till June 30, 2019.

Reduced rate of 2% for a company being


a filer engaged in freight forwarding
services, courier services, man power
outsourcing services, hotel services,
security guard services, software and IT
related services etc. has been extended to
tax year 2017 subject to filing of
irrevocable undertaking by November
2016 to present its accounts for audit.

Exemptions/ConcessionsWithdrawn/Restricted:

Time based exemption to Micro Finance


Banks, being redundant, has been
withdrawn.

Inter Group dividend exemption for

companies who are not assessed as a


group has been withdrawn.

Rate of tax for services rendered and


construction contracts executed
outside Pakistan shall now be taxed at
50% of rates applicable to payments
made in Pakistan on such activities from
existing rate of 1% for the said activities.

Minimum tax exemption for Companies,


operating trading houses, has been
withdrawn and will be liable to pay
minimum tax @0.5% of turnover till 2019
and 1% afterwards.

Withholding tax exemption on payment of


interest on Term Finance
Certificates held by Companies has
been withdrawn.

Industrial undertaking desirous to avail

7th Schedule
Super tax chargeability has been extended to
banks in Tax Year 2016 although they were
imposed for 1 year in Finance Act 2015.

8th Schedule
Various provisions regarding withholding taxes
and submission of information to NCCPL and
tax Department have been introduced.

exemption certificate on/for nonpayment of advance tax at import


stage shall be treated to have been

selected for audit under section 214C for


verification of consumption, production
and sales. If taxpayer defaults in
presenting the required accounts/documents,
the certificate issued shall stand cancelled
and tax previously not paid at import stage
shall be recovered.

4th Schedule
The Income of Insurance companies from
Capital Gains on shares of listed companies,
PTCL vouchers and other products is to be taxed
at the rates applicable for the companies instead
of concessional rates.

6th Schedule
The maximum limit of contribution of
employer exempt from tax for employee has

been enhanced from Rs.100,000 to Rs.150,000.

13

Sales Tax
Section 2(5AB)
Annual turnover limit for Cottage Industry for
registration under Sales Tax has been increased
from five (5) million to ten (10) million. Now
every manufacturer whose annual turnover
exceeds Ten million or its annual utility bills
exceeds Eight Hundred Thousand Rupees
shall be required to be registered for sales tax.
Sections 2(9), 6 & 7
FBR recently devised system for self-processing
of sales tax declarations to avoid subsequent
CREST related issues. In this regard certain
amendments vis-a-vis different dates for
different parts and/or annexures of the return
and payment of taxes etc. have been made in
the Act. To make it effective the buyer would not
be able claim input if the supplier has not
declared or paid the amount of tax due in his
return from July 2016. A detailed SRO
493(I)/2016 dated July 01, 2016 has been
issued by the Board.
Section 2(14)
Provincial Sales tax levied on services has been
excluded from the definition of Input Tax.
Section 11(4A)
Provision to recover withholding sales
tax from the person who failed to withhold and/or
deposit the same in the required manner has
now been introduced in law.In a number of
cases, the Tribunal has quashed the orders to
treat the registered person as assesse in default
for non-deduction of withholding tax and to
recover the same from the registered person
liable for withholding on the plea that there is no
express provision in Sales Tax Act empowering
the tax officer to treat him assesse in default.
This lacuna has been rectified.

14

Section 26(2)
Provision with respect to separate return on
account of change in rate is deleted as being
redundant.
Section 30DDD
Mechanism for establishment of Directorate

General of Input Output Co-efficient


Organization has been introduced.
Section 33

Penalty for violation of rules made under the


Act which was not available in the section 33 has
now been introduced.
Section 47A
With a view to improve the Alternate Dispute
Resolution Mechanism, following
amendments have been introduced:
Commissioner Inland Revenue is included in
committee instead of Additional Commissioner
Inland Revenue;
Board is required to pass an order on the
recommendation of the Committee within ninety
days instead of forty five days; and
In case order is not passed by the Board within
ninety days, the recommendation of the
committee shall be treated as an order passed
by the Board.
Section 49(2)
Transfer of taxable goods or part thereof, in the
case of sale or transfer of ownership of taxable
activity to other registered person as going
concern, shall be made through a zero rated
invoice.
Section 56B
Applicability of the Freedom of Information
Ordinance, 2002 for any information received
or supplied in pursuance of bilateral or multilateral
agreements with foreign countries isrestricted as

provided under section 216 of the Income Tax


Ordinance, 2001.

3rd Schedule

Exemption related to items used for Alternative


Energy have been revamped to cover tubular
day lighting device, energy savers. Invertors etc.

Sales tax on mineral/bottled water is levied on


retail price from the existing normal regime.

Exemption on import or acquisition of


aircrafts on wet or dry lease by PIA has been
made effective from March 19, 2015.

5th Schedule

8th Schedule

Zero Rating on Stationery items is withdrawn.

HS Codes of certain ingredients of Poultry and


Cattle Field is aligned and applicable rates has
been enhanced to 10% from existing 5%.

Zero Rating on Milk and fat filled milk is

substituted with exemption. This will increase the


cost of milk. This step appears to have been
taken to eliminate accumulation of refund on
account of zero rating of these items.

6th Schedule

Sales tax rate on agriculture tractors has


been reduced to 5% from existing 10% and on
Laser Land Leveler reduced rate of 7% is
introduced.

Mechanism for exemptions on local and imported


supplies of materials and equipment for

Reduced rate sales tax on white crystalline


sugar and urea at the rate of 8% and 5%
respectively has been introduced.

Overseas Ports Holding Company Limited and its


operating companies, their contractors and subcontractors etc. has been introduced.

Time bound concessionary rate of 5% on Set top


boxes for internet, TV broadcast transmitter,
reception apparatus for satellite signals etc. is
introduced upto June 30, 2017.

construction and operation of Gawadar


Port and development of Free Zone by China

Supplies made by business to be established in


Gawadar Free Zone has been exempted from
sales tax for a period of 23 years on sales and
supplies made only within Gawadar Free Zone.
Sales tax on certain items including premixes
for growth stunting, laptop computers,
personal computers, pesticides along with their
active ingredients as mentioned in serial number
130-133 have been exempted. Previously
pesticides and their active ingredients were
subject to reduced rate of 7% under Eighth
Schedule.
Sales tax on dump trucks imported for Thar
Coal Field Project has been exempted.
Import and supply of ships with gross
tonnage of over 15 LDT have also been
extended exemption from sales tax.

Machinery and equipment for development of


grain handling and storage facility is subjected to
reduced rate of sales tax at 10%. Silos have
been added in this category to take benefit of
reduced rate at 10%.
Concessionary rate of 5% introduced for import

of plant and machinery for manufacture of


dairy products including milk chillers, Tabular

heat exchanger, Milk processing plant, milk spray


drying plant, Milk UHT plant, Milk filters etc. by a
registered manufacturer who is member of
Pakistan Dairy Association.

9th Schedule
Sales tax on medium priced and smart cellular
mobile phones or satellite phones has been

enhanced to Rs.1,000 and Rs.1,500 from existing


Rs.500 and Rs.1,000 respectively.

15

IMPACT OF SALES TAX SROS


S.R.O. 487/(I)/2016 Amendment in S.R.O. 648(I)/2013 dated July 09,
2013.
Further sales tax at the rate of two percent on
unregistered persons shall not be levied on
second hand worn clothing and worn articles
falling under PCT heading 630900
S.R.O. 488(I)/2016 Amendment in Special Procedure for payment of
sales tax by retailers
Retailers who are not liable to pay sales tax
through electricity have been provided with option
to pay sales tax at the rate of two percent of their
turnover including exempt supply without
adjustment of any input tax. However, such option
can only be exercised by submitting an option to
concerned Chief Commissioner of LTU/RTO
before July 15, 2016 which shall remain effective
till end of financial year.
Payment of sales tax by Marble Industry
Persons engaged in manufacturing of marble and
granite and polishing having valid registration with
All Pakistan Marble Industries Association
(APMIA) shall pay sales tax at the rate of one
rupee and twenty five paisa per unit of electricity
consumed as final discharge of their net sales tax
liabilities to the extent of aforementioned
activities. No input tax adjustment shall be
allowed to the manufacturer of marble and granite
paying sales tax as above and same shall be
collected by electricity distribution companies in
addition to collection of other sales tax leviable
under Sales Tax Act. Manufacturing units
exporting more than fifty percent of marble and
granite shall have option to get excluded from the
scheme subject to approval of the concerned
Commissioner.

S.R.O. 489/(I)2016 Rescindment of S.R.O. 115(I)/2008 dated


February 06, 2008 as exemption for Gawadar
port has now been provided in Sixth Schedule.
Rescindment of S.R.O. 212(I)/2012 dated March
26, 2014. This SRO has become redundant as
sales tax on services has now been deleted from
definition of input available under the Act.
S.R.O. 490(I)/2016 Amendment in S.R.O. 57(I)/2016. Sales tax on
import and supply of petroleum products shall
again be levied on percentage of value of supply
instead of per liter basis.
S.R.O. 491(I)/2016 Changes have been made in SRO 1125(I)/2011
dated December 31, 2011 whereby zero rating
regime have been restored for five export
oriented sectors effective from July 1, 2016
tabulated as under.

S. No.

Description of goods
and
point of taxation

Goods usable as industrial inputs, specified in Table-I


including fabric

1.

Import for in-house


consumption
by registered
manufacturers of the five
sectors

2.

Commercial imports

0%

0% + 0%
value
addition tax

3%

3%+1%
value
addition
tax

Supplies to registered or
unregistered persons of
the said five sectors

0%

3%

Supplies to persons
outside the said five
sectors

17%

17%

0%

3%

Import by, or supply


to, registered
manufacturers, whether
or

16

Rate of
Sales Tax Previous
w.e.f.July 1,
rate
2016

S. No.

Description of goods
and
point of taxation

Rate of
Sales Tax Previous
w.e.f.July 1,
rate
2016

not of the said five


sectors,
for the manufacture of
goods specified in TableI or Table-II of the said
SRO 1125
Supplies of finished
fabric to and by retailers;
supplies of finished fabric
to end consumers; other
supplies of finished fabric

S.R.O. 492(I)/2016 Amendment in S.R.O. 563(I)/2006 dated June 05,


2006 whereby value for sales tax on white
crystalline sugar for local and import has been
fixed at Rs.56/kg and USD 725/MT.
S.R.O. 493(I)/2016.-

5%

3%

Procedure for automatic processing of sales tax


returns have been specified through this SRO.

Proccessed goods including fabrics


Processing of goods owned
3. by other
0% of the 3% of the
persons, by registered
processing processing
manufacturers
of the five sectors mentioned charges charges
in condition (i).

Locally manufactured finished articles of (a)


textiles and textile made ups and
(b) leather and artificial leather.
(b)
Supplies to any person,
4. including retail sales

5%

5%

Imported finished goods ready for use by the


general public
5. (i) Import

17%, plus 17%, plus


2% value 2% value

(ii) Supply thereof

addition

addition

tax

tax

17%

17%

Other conditions mentioned in SRO 1125 are


same except for following significant amendments
1. Non- availability of credit on input tax paid
on packing material of all sorts;
2. Provision for Issuance of certificate to the
genuineness of the refund claim have
been omitted; and
3. Supply of furnace oil, diesel oil and coal to
the registered manufacturers of the five
sectors are now falls in the ambit of Zero
rated supplies and will be charged at Zero
percent subject to the issuance of a
general order by the Board.

17

FEDERAL
EXCISE
DUTY
Section 2(8a) and 4
Certain amendments vis-a-vis different dates for
different parts and/or annexures of the return
and payment of taxes etc. have been introduced
with the objective to facilitate implementation of
self processing of FED returns data to ensure its
authenticity. FBR has been given power to set
separate date for different annexures of the FED
return.
Section 4
Provision with respect to separate return on
account of change in rate is deleted as being
redundant.
Section 19
Penalty for violation of rules made under
Federal Excise Act, 2005 previously missing has
now been introduced at Rs.5,000 or 3% of the
duty whichever is higher.
Section 38
With a view to improve the Alternate Dispute
Resolution Mechanism, following
amendments have been introduced:
Commissioner Inland Revenue is included in
committee instead of Additional Commissioner
Inland Revenue;

18

Board is required to pass an order on the


recommendation of the Committee within ninety
days instead of forty five days; and
In case order is not passed by the Board within
ninety days, the recommendation of the
committee shall be treated as an order passed
by the Board.
Section 47B
Applicability of the Freedom of Information
Ordinance, 2002 for any information received
or supplied in pursuance of bilateral or
multilateral agreements with foreign countries is
restricted.

1st Schedule
The rate of Federal Excise Duty (FED) on

Aerated Waters, beverages and juices has

been increased to 11.5% from 10.5%.

FED on locally produced cigarettes has been


increased to Rs.3,436 and Rs.1,534 per thousand
cigarettes for the on pack printed retail price
greater than and lesser than Rs.4,000
respectively during 1 July to 30 November 2016.
From 1st December onwards FED will be
Rs.3,705 and Rs.1,649 per thousand
cigarettes for the on pack printed retail price
greater than and lesser than Rs.4,400
respectively.
Calculation basis of FED on cement has been
changed from 5% of the retail price to Rs.1 per
kilogram.
FED on White Crystalline Sugar has been
abolished as same is subjected to Sales Tax
from July 2016.
FED on services of advertisement, shipping
agents, banking, franchise and stockbroker on
which provincial sales tax is levied has been
abolished.

3rd Schedule
Conditional Exemption of FED on White
Cement has been withdrawn.
Mechanism of exemptions for local and imported
supplies of materials and equipment for

construction and operation of Gawadar


Port and development of Free Zone by China

Supplies made by businesses to be established in


Gawadar Free Zone shall be exempt from FED
for a period of 23 years on supplies made only
within Gwadar Free Zone.

Chartered Flight services used by or for


armed forces shall be exempt from levy of duty.

Overseas Ports Holding Company Limited and its


operating companies, their contractors and subcontractors etc. has been provided.

19

Islamabad
Capital Territory
Tax on Services
Ordinance 2001
Certain powers of Federal
Government are made applicable through
ICTO, such as:

Specifying higher and lower rates


of taxes;

Levy and collect sales tax on


services;

Allow exemptions; and

Notify withholding agents etc.

Zero Rating facility available to diplomats and


exemptions available to grants in aids are
also made applicable under ICTO.
Tax levied under ICTO shall not apply to

regulatory and licensing services

rendered or provided by an organization


established under a Federal Statute.
Education testing services provided or
rendered under a bilateral or multilateral
agreement signed with the Government of
Pakistan shall not be included in the ambit of
valuation, competency and eligibility testing
services covered in serial number 37 of the
Schedule to the ICTO.
Concessionary rate of five percent on certain
services with the limitation that no input
adjustment or refund shall be available against
output has been introduced through SRO
495(I)/2016 dated July 04, 2016 by the FBR.

20

Following is the list of services eligible for


reduced rate

Construction services
Beauty parlour, clinics slimming
centres, body massage centres,
cosmetic and plastic surgery services
etc.
Freight forwarding and packers and
movers services
Services provided by specialized
workshops or undertakings
Services provided by health, fitness
centers/clubs/gyms etc.
Laundry and dry cleaning services
Services provided by property dealers
and realtors
Services provided by car and
automobile dealers

PUNJAB
FINANCE
ACT
Stamp Act 1889
Clarification is given to remove the ambiguity
regarding persons responsible for the payment
of stamp duties on contracts, beneficiaries of
court orders, gifts and interests in immovable
property. Now the duty shall be paid by the
person in whose favour contract, decree or
gift/interest in immovable property is executed.
Calculation basis for stamp duty on Power of
Attorney to sell any immovable property has
been changed to be 3% of the amount
calculated according to the value notified by the
District Collector instead of the amount of the
consideration.
Stamp duty on Power of Attorney given without
consideration to sell any immovable property
shall be Rs.1,200 in case executed between
spouses, wives or widows of the same husband
or between father, mother, children,
grandparents or grandchildren. In other cases,
duty shall be paid @2% of the amount calculated
according to the value notified by the District
Collector.

Punjab Urban Immovable


Property Tax Act 1958
Buildings and Lands have been defined to
include vacant plots or a parcel or portion
having fixed boundaries. By virtue of this
amendment vacant plots have also been taken
into the scope of Property Tax. Consequently,
exemption already available (clause i

of section 4) for five marla is also extended to


include vacant plots of annual value not more
than five thousand rupees, situated in a rating
area as category-A. Furthermore, exemption is
also provided for a vacant plot whose
possession is handed over for the first time,
even if the plot is transferred to subsequent
owner, for a period of maximum 2 years during
which it remains vacant/without construction
In order to ensure the payment of tax, the
registering authority is required to verify the
payment before registration of instrument of
sale, gift or exchange of immovable property.

Punjab Sales Tax on Services


Act, 2012
Section 14
A person or class of persons required to deduct
or collect tax or in case of failure to deposit the
same is made personally liable for the defaulted
amount.
Section 16
This section has been revamped to provide
mechanism for deduction and adjustment of tax
on input tax in the business. Earlier, such
provisions were available in section 10 and
deleted section 16 of the Act.
Section 16A
In line with section 73 of the Federal Sales Tax
Act, 1990, provisions for payment through
banking channel is provided in the Act. Non
adherence to this section can result in
disallowance of input tax for the service
provider.
Section 16B
Certain restrictions on claim of input tax already
available in Rules has now been made part of
primary legislation. Resultantly, a registered

21

person shall not be entitled to claim input tax


adjustment in respect of:

Capital goods not used in taxable


services;
Goods/services on which tax is not paid
or paid before the commencement of this
Act including carried forward input tax;
Utility bills not in the name of the
registered person;
Tax not deposited by the service
provider or evidence of payment is not
produced;
Goods/services liable to reduced
rate(less than 16%) or specific rate (not
based on value);
Output tax is charged on less general
rate i.e. 16%;
Food, clothing, entertainment, gifts and
giveaways etc;
Goods/services not used for taxable
services;
Tax paid under Federal or other
Provincial laws on goods/services for
which reciprocal adjustment of tax paid
under PRA is not allowed;
Goods not declared by the supplier in
his return;
Goods used as final consumer
excluding those exclusively used in the
economic activity of the registered
person;
Further tax, extra tax and value
addition tax levied under Sales Tax Act,
1990
Other notified goods/services;
Tax paid as final tax or fixed tax.

Section 35
A Statement filed by a person in the prescribed
form shall be treated as a return if he is only
obliged to withhold/deduct tax.

22

Rs.5,000 and Rs.200 from Rs.100 per day for


continued default.
Section 60
Base value for the cases to be referred to
Deputy Commissioner of one million rupees has
been omitted.

Second Schedule
Scope of following services enhanced as under
a. Hotels, clubs etc. to include services
provided on membership basis.
b. Advertisement on radio/television - to
include services showcasing of any
product or service in video programs, tv
programs, motion pictures or music
albums.
c. Advertisement services - to include
brand activation in any mode,
advertisement on moving vehicles, cell
phones, ATMs etc.
d. Construction services- to include
services for water/gas supply, roads and
bridges, electrical and mechanical
works, horticultural works, turnkey
projects etc.
e. Business support services- to include
business auxiliary services
f. Cleaning services- to include collection
and processing of domestic waste and
street cleaning services
g. Transportation services- to include
transmission lines
Construction Services provided to
Government civil works, including those of
Cantonment Boards, have now been made
taxable at prevailing rate of 16%.
Following services are made taxable with effect
from July 01, 2016:

Section 48

Penalty for default in filing of return within due


date has been enhanced to Rs.10,000 from

Cosmetic and plastic surgery and hair


transplant excluding for acid/burn
victims;
Warehouses or depots for storage
including cold storage;

Packers including handling and packing


services.

It is pertinent that the lower rate regime for


certain services introduced vide SRO number
SO(TAX)1-1/2015-16 (VoI.II) dated January 11,
2016 stands expired on June 30, 2016.
Extension to this regime has neither been
provided through Finance Act, 2016 nor has any
SRO yet been issued. Consequently, rate of tax
shall be sixteen percent on the services
previously falling under lower regime with effect
from July 01, 2016.

ENGINE CAPACITY

TAX RATES

1300 cc 1500 cc

Rs.70,000

1500 cc 2000 cc

Rs.150,000

2000 cc 2500 cc

Rs.200,000

Greater than 2500 cc

Rs.300,000

Punjab Motor Vehicle Taxation


Act, 1958
Option is provided to the owners of

Mechanical power tricycle to pay tax on


lump sum basis of Rs.3,000;
Motor vehicle having engine capacity
between 1000 cc and 1300 cc to pay
lump sum tax for 3 years;

Final date for availing 10% rebate on the


amount of tax is extended from end of July to
end of August. Also lump sum payment can be
made any time during the year.

Punjab Finance Act, 1973


Rate of fee for vehicles having engine capacity
of 1000 cc to 1500cc and 1500 cc to 2000 cc
has been enhanced to 2% and 3% of the value
of the vehicle respectively.

Tax on Imported Motor Cars


One time tax on imported motor cars with
engine capacity exceeding 1300 cc registered
after June 30, 2016 is to be levied at following
rates:

23

KPK
FINANCE
ACT
Stamp Act, 1899
Stamp fee for following has been increased in
following manner:

Affidavits - from Rs.60 to Rs.100


Allotment of residential open plots - from
Rs.200 to Rs.300 per Marla and on
allotment of commercial open plots from Rs.400 to Rs.600 per Marla;
Arms licenses of non-prohibited bore
from Rs.150 to Rs.300 and in case of
prohibited bore from Rs.1,000 to Rs.1,500
Form X and form XII prescribed under
the Arms Rules - from Rs.2,500 to
Rs.5,000
Various types of Power of Attorneyfrom Rs.300 to Rs.600 and from Rs.900
to Rs.1,500.

West Pakistan Urban


Immovable Property Tax Act,
1958
For the computation of property tax a new
category C locality is introduced and is given
a weightage of 5%.

West Pakistan Motor Vehicle


Taxation Act, 1958
Rates for levy of motor vehicle tax has been
enhanced through substitution of the existing
Second Schedule.

24

West Pakistan Finance Act,


1964
Electricity duty on variable charges or supply
charges of electricity consumed for the following
has been reduced:

Domestic from 8% to 1.5%


Commercial from 5% to 1.5%
Industrial from 5% to 1%
Tube wells for irrigation and agriculture
machinery @ 1% and
Premises where the supply of energy by
a licensee is un-metered @ 1.5%.

West Pakistan Motor Vehicles


Ordinance, 1965
Provincial Government is empowered to
introduce system for series of vehicles
registration, number plates and other
registration documents to be affixed or used
with the motor vehicle.

Khyber Pakhtunkhwa Finance


Act, 1990
Association of persons and individual firms are
included under the ambit of professional tax at
the specified rates. The intention is to tax
Association of Persons and Individual Firms
on similar basis as in case of limited liability
companies.

Khyber Pakhtunkhwa Finance


Act, 2013
Section 41
A resident person receiving taxable services
from a non-resident person in terms of section
19(2) of the Act is to be treated as a registered
person for the purposes of the tax period in
which the resident person receives the services,
or the invoice is sent by the non-resident person
or consideration is paid, whichever is earlier.

Section 56
The Finance Act 2016 substituted the
requirement for the Authority to frame
regulations to define powers and pecuniary &
territorial jurisdiction of officers. Officers are to
exercise powers and discharge duties in the
manner conferred upon them under the Act and
regulations made thereunder. According to
Section 56 (2), the Authority is empowered to
impose limitations, restrictions or conditions to
discharge powers and duties by the officers
through passing of a general or a special order.
Section 56A
A new section has been inserted, after section
56 (Appointment of Officers) which prescribes
that powers of a senior officer could be
exercised or performed by a junior officer,
subject to specified conditions and limitations
imposed by the Authority. Purpose of this
amendment is to cater for shortage of officers
available with the Authority by providing legal
cover for delegation of authority.

Powers of officers of the KPK Revenue


Authority has been elaborated by:

Empowering an officer to exercise


powers and discharge duties of
subordinate officers; and
Empowering the authority to limit, restrict
or impose conditions on exercise of
powers by the officers.

Following new services have been included in


the First Schedule (but are not included in the
Second Schedule):

Facilities for travel by road;


Cargo services by road;
Visa processing services including
advisory or consultancy services for
foreign education or for migration; and
Valuation services including competency
and eligibility testing services.

Section 84
The Finance Act 2016 has clarified that an order
passed by the Collector or Authority under any
of the provisions of the Act as an appealable
order before the Appellant Tribunal. It means
that the taxpayer or the officer (not below the
rank of an Additional Collector) can challenge in
appeal the order of the Collector or the Authority
passed under any provision of the Act directly
before the Appellant Tribunal.
Section 114
The Finance Act has removed requirement for
the Authority to seek approval from the Council
to make regulations or specify procedures, not
inconsistent with the rules, to give effect to the
purposes of the Act except where the relevant
provisions of the Act specifically provides for
such approval to be obtained.

25