CIRCULAR NO. 16, Islamabad, December 22, 2010

UNIFORM TREATMENT FOR PROVIDING EXEMPTION TO TELECOM SECTOR COMPANIES FROM DEDUCTION OF ADVANCE TAX UNDER SECTION 148 OF THE INCOME TAX ORDINANCE 2001 GOVERNMENT OF PAKISTAN REVENUE DIVISION FEDERAL BOARD OF REVENUE ***** C.No.1(9) WHT/2006-Pt Islamabad, December 22, 2010 CIRCULAR NO. 16 (INCOME TAX) Subject: UNIFORM TREATMENT FOR PROVIDING EXEMPTION TO TELECOM SECTOR COMPANIES FROM DEDUCTION OF ADVANCE TAX UNDER SECTION 148 OF THE INCOME TAX ORDINANCE 2001 CIRCULAR NO. 16, Islamabad, December 22, 2010:- Honourable Lahore High Court in WP No.247/2010 dated 09th February 2010 has been pleased to direct that a uniform policy should be practiced in allowing exemption on imports made by the taxpayers of similar trade engaged in the business of Telecommunication. The issue has been examined in the light of the directions of the Honourable High Court and applications filed by the telecommunication companies in various cases for grant of exemption certificates for non-deduction of advance tax under section 148 of the Income Tax Ordinance 2001, on import of Plant, machinery, equipments etc. 2. Exemption certificate under section 159(1)(a) of the Ordinance read with clause (V) of SRO. 947(I)/2008 Dated 05th September 2008 can be issued by Commissioner of Inland Revenue to a person who imports plant, machinery, fixtures, fittings or its allied equipment for the purposes of setting up an industrial undertaking owned by such person, or for installation in an existing industrial undertaking. However Clause (29C) of section 2 of the Ordinance recognizes only those undertakings as industrial undertakings which are engaged in: i) the manufacture of goods…