A new clause(24B) has been inserted in Part-II of Second Schedule of the Income Tax Ordinance 2001, to provide for reduced rates of minimum tax under sections 113 and withholding tax under section 153, in case of steel mills and steel re-rolling mills.
SRO 550(I)/2012 is an Income Tax SRO dated 23 May 2012, listed by FBR as "A new clause(24B) has been inserted in Part-II of Second Schedule of the Income Tax Ordinance 2001, to provide for reduced rates of minimum tax under sections 113 and withholding tax under section 153, in case of steel mills and steel re-rolling mills.".
FBR publishes this SRO as scanned images, so the text below was transcribed by Qanoon Digest from the page images, with tables set out as tables. Check the official PDF before relying on any wording or figure.
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Government of Pakistan
Revenue Division
Fedral Borad of Revenue
Islamabad, the 23rd May,2012.
NOTIFICATION
(Income Tax)
S.R.O. 550(I)/2012. - In exercise of powers conferred by sub-section (2) of section 53 of the Income Tax Ordinance 2001 (XLIX of 2001), the Federal Government is pleased to direct that the following further amendment shall be made in the Second Schedule of the said Ordinance, namely:-
(a) In the Second Schedule; in Part-II, after clause (24A), the following new clause (24B) shall be inserted, namely:-
"(24B) (a) In case of Steel Melters, who have opted under the Sales tax Special Procedure Rules 2007,-
(i) for the tax year 2011, the rate of minimum tax under sub-section (1) of section 113 shall be 0.5% of turnover or Rs.280 per Metric Ton, whichever is higher, provided that the consequent tax liability is deposited by 31st May, 2012;
(ii) for the tax years 2008 to 2010, the rate of withholding tax under section 153(1)(a) on purchase of steel scrap shall be 1% of value of purchases or Rs.300 per Metric Ton, whichever is higher, provided that the consequent tax liability is deposited by 30th June, 2012; and
(iii) for the tax years 2011 and 2012, the rate of withholding tax under section 153(1)(a) on purchase of steel scrap shall be 1% of value of purchases or Rs.400 per Metric Ton, whichever is higher, provided that the consequent tax liability for the tax year 2011 is deposited by 30th June, 2012.
(b) In case of Steel Re-rolling Mills, who have opted under the Sales tax Special Procedure Rules 2007,-
(i) for the tax year 2011, the rate of minimum tax under sub-section (1) of section 113 shall be 0.5% of turnover or Rs.315 per Metric Ton, whichever is higher, provided that the consequent tax liability is deposited by 31st May, 2012;
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(ii) for the tax years 2008 to 2010, the rate of withholding tax under section 153(1)(a) on purchase of ingots and billets shall be 1% of value of purchases or Rs.400 per Metric Ton, whichever is higher, provided that the consequent tax liability is deposited by 30th June, 2012; and
(iii) for the tax years 2011 and 2012, the rate of withholding tax under section 153(1)(a) on purchase of ingots and billets shall be 1% of the value of purchases or Rs.450 per Metric Ton, whichever is higher, provided that the consequent tax liability for the tax year 2011 is deposited by 30th June, 2012"; and
(b) in Part-IV, in clause (12), sub-clause(c) shall be omitted.
[C.No.1(18)WHT/2011-Pt.]
(SHAHID HUSSAIN ASAD)
Member Inland Revenue/
Additional Secretary
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