S.R.O 698(I)/2014 Date 24.07.2014

GOVERNMENT OF PAKISTAN
REVENUE DIVISION
FEDERAL BOARD OF REVENUE

Islamabad, the 24th July, 2014.

NOTIFICATION
(Income Tax)

S.R.O. 698(I)/2014.- The following draft of certain further amendments in the Income Tax Rules, 2002, which the Federal Board of Revenue proposes to make in exercise of the power conferred by sub-section (1) of section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001) read with sub-section (3) of section 236L, is hereby published for the information of all persons likely to be affected thereby, as required by sub-section (3) of section 237, and notice is hereby given that the draft will be taken into consideration by the Federal Board of Revenue after seven days of its publication in the official Gazette.

Any objection or suggestion, which may be received from any person, in respect of the said draft, before the expiry of the aforesaid period, shall be considered by the Federal Board of Revenue.

DRAFT AMENDMENT

In the aforesaid Rules, in Part II, after Division III, the following new Division shall be inserted, namely:-

"Division IIIA

ADVANCE TAX ON AIR TICKETS

43A. Advance tax on air tickets.-(1) This rule shall apply for the purposes of section 236B and 236L.

(2) Airlines issuing tickets directly to passengers, either manually or electronically, shall charge and collect advance tax, at the rates applicable for sections 236B and 236L, directly from the passengers and shall be paid within the time as prescribed in rule (43).

(3) Where the tickets are issued by persons, other than the Airlines, and the persons issuing tickets on behalf of the Airlines, are charging and collecting advance tax from the passengers and making payment of tax to the Airlines directly, or through IATA, or through any other entity authorized in that behalf, the tax so collected by the airlines from such persons shall be paid as per sub-rule (4).

(4) Tax collected by the airlines under sub-rule (3), shall be paid within seven days from the date when the tax from persons mentioned in sub-rule (3) is received, but not later than one month from the date when such tax was collected from the passengers.

(5) Every Airline issuing international air tickets shall make adequate arrangements for collection of tax under this rule from the persons issuing tickets on its behalf or through electronic means, and in case of default, the said tax shall be collected from the airline, without prejudice to any other liability which it may incur under the Ordinance.

(6) Provisions of section 236L shall not be applicable in the case of a foreign diplomat or a diplomatic mission in Pakistan.

(7) Notwithstanding anything contained in Second Schedule to these Rules, monthly and annual statement of tax collected under section 236B and 236L shall be submitted by every airline to the respective Commissioner Inland Revenue, in the following Form and verified in the manner as indicated therein, namely:-

FORM

Monthly and annual statement of tax collected under section 236B of the Income Tax Ordinance, 2001, during the month/year ending on the______, 20_____

I certify that the above statement contains complete information of tax collectible under section 236B of the Income Tax Ordinance, 2001, during the month/year ending on the______, 20_____

Name and Signature of person responsible________________

Signature________________

Date________________

Seal________________

Monthly and annual statement of tax collected under section 236L of the Income Tax Ordinance, 2001, during the month/year ending on the______, 20_____

I certify that the above statement contains complete information of tax collectible under section 236L of the Income Tax Ordinance, 2001, during the month/year ending on the______, 20_____

Name and Signature of person responsible________________

Signature________________

Date________________

Seal________________".

[F.No.4(61)ITP/2014]

(Muhammad Irfan Raza)
Secretary (Income Tax Policy)