S.R.O. 1043(I)/2014, Islamabad, the 2nd November, 2014

Amendments in the Income Tax rules, 2002 S.R.O. 817(I)/2014, Islamabad, the 15th September, 2014:- In exercise of the powers conferred by sub-section (1) of section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Board of Revenue is please direct that the following further amendments shall be made in the Income Tax rules, 2002, the same having been previously published vide Notification No. S.R.O. 698(I)/2014, dated the 24th July, 2014, as required by sub-section (3) of the said section, namely: 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 sub-rule (4). Explanation: For the purpose of this rule, airline means airline issuing tickets for uplifting passengers of any airline, whether having its head office or registered office or an agent in Pakistan or not, if the journey originates in Pakistan. The obligation to charge, collect and deposit tax is in respect of the airline uplifting the passengers in respect of the journey originating in Pakistan. (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 by the 15th day of the following second month in respect of tickets issued up to the last working day of each calendar month: Provided that for the month of May and June, the tax shall be paid by 15th day of June on the basis of average tax paid in respect of July to April. Any…