Law: Income Tax Ordinance, 1979

Section: 80D.80C,80D(1)

(a) Income Tax Ordinance (XXXI of 1979)---Ss.80-D & 80-C---C.B.R. Circular No.12 of 1991---C.B.R. Circular No.8 of 1991---C.B.R. Circular No.10 of 1991---Object, scope, application and interpretation of S.80-D---Provisions of S.80-D when attracted---Tax payable under a particular block of income is not to be considered separately but the material point for consideration for applying S.80-D is the tax payable or paid by the Company and the gross receipt of the company from all sources and assessable under any provision of the Income Tax Ordinance whatsoever. The intention of the Legislature in enacting section 80-D was to impose a minimum tax on the turnover of a company or a registered firm at 0.5% of its turnover from all sources where no tax is payable or paid by a company or a registered firm or the tax payable or paid is less than 1/2% of the amount representing such turnover. Thus, the expressions which require particular consideration are as follows:-- (a) Where no tax is payable or paid by a company or registered firm, (b) the tax payable or paid is less than 1/2% of the amount representing its turnover from all sources, (c) the aggregate of the declared turnover shall be deemed to be income of the said company. An explanation has been added to section 80-D(1) whereby the expressions "where no tax is payable or paid" and "the tax payable or paid" have been explained. By virtue of this explanation these expressions applied to all cases where no tax was payable or paid for any reason whatsoever including any loss of income, profits or gains or set-off of loss of earlier years, exemption from tax, credits or rebates in tax and allowances and deductions (including depreciation) admissible under any provision of the Ordinance or any other law for the time being in force. The explanation has been added with retrospective effect. The legislature in its own wisdom has further defined the expression "turnover" to mean gross receipts, exclusive of trade discount shown on invoices or bills derived from the sale of goods or from rendering, giving or supplying services or benefits or from execution of contracts. A perusal of section 80-D(1) itself further shows…

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