Law: Income Tax Ordinance, 1979

Section: 79,11(1),12(5)

(a) Income-tax Ordinance (XXXI of 1979)---Ss. 79 & 11(1)--Convention for the Avoidance of Double Taxation entered into between Pakistan and U.S.A., Arts. II(i) & 111(i)--Income not falling within definition of industrial or commercial profits and thus subject to Pakistan tax enumerated. If income falls under any of the categories laid down hereinbelow, it would not be industrial or commercial profits, hence subject to Pakistan tax. The categories are as follows:- (1) income derived from trade or business in Pakistan through a permanent establishment situated therein; (2) rent or royalties or motion picture films or of oil wells. Mines and querries; (3) income earned in the form of dividends, interest or rents; (4) income derived from other type of royalties than those mentioned above; (5) income derived by way of fee or other remuneration from the management, control or supervision of the trade, business or other activity of another enterprise or concern; (6) income derived as remuneration for labour or personal services, and (7) income derived from operation of ships. 1985 P T D 877 (Trib.) ref. . (b) Income-tax Ordinance (XXXI of 1979)-- ---Ss. 79 & 12(5)--Convention for the Avoidance of Double Taxation Treaty entered into between Pakistan and U.S.A., Art. II(i) & III (i)--"Fees for technical services" in S.12(5) means and includes any fees paid for consultancy services-- Assessee, a non-resident company incorporated under laws of United States of America entered into a contract with a company in Pakistan incorporated under Companies Act of Pakistan for the purpose to up-date pre-investment feasibility study for .the preparation of a bankable document whereby finances could be raised from international as well Pakistan financial institutions regarding integrated mineral development: projects--Agreement showing that assessee was not required to exercise any powers which may :,aunt to management, control or supervision of the trade, business other activity of another enterprise or concern--Engineers of assessee came to Pakistan to see the working conditions in the country and collected samples for testing--Representative of assessee also visited Pakistan to…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492