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CHAPTER – XIX
MISCELLANEOUS
224. Conditions for approval of leasing company claiming depreciation etc.- The following conditions shall be fulfilled by a Modaraba or by leasing company to claim expenditure on depreciation on the leases under this rule, namely:-
(i) the leasing company is engaged principally in the business of leasing of assets and has been issued a license by the Security and Exchange Commission of Pakistan to operate under the terms and conditions specified therein; and
(ii) the leasing company Modaraba doing leasing business undertakes that where a motor vehicle is given on lease, the purchase value thereof shall be restricted to the amount specified in the Third Schedule to the Ordinance for the purposes of claiming depreciation or the expenditure on such lease.
225. Recognized Associations of Accountants for the purpose of section 223.- The following bodies are recognized by the Board as associations of accountants for the purpose of section 223, namely:-
(a) The Institute of Chartered Accountants in England and Wales;
(b) The Institute of Chartered Accountants in Scotland;
(c) The Institute of Chartered Accountants in Ireland;
(d) The Society of Incorporated Accountants and Auditors, London; and
(e) The Association of Certified Accountants, United Kingdom.
226. Appointment of valuers.- (1) A person desiring to be appointed as a valuer for the purposes of section 222 shall make an application to the Commissioner in duplicate setting out the fact or facts by virtue of which the person claims to be qualified for such appointment.
(2) For the purpose of sub-rule (1) a person qualified for appointment as a valuer means a person who:-
(a) holds a degree or equivalent qualification in civil engineering or mechanical engineering or mechanical and electrical engineering from any University incorporated under any law for the time being or accredited or affiliated by any association of universities or college in force in Pakistan and Azad Kashmir or a like degree or qualification conferred by any foreign university incorporated by law of that country and recognized by a Pakistani University;
(b) holds an internationally recognized qualification in architecture equivalent to or comparable with the Associate-ship of Royal Institute of British Architects;
(c) having successfully completed a diploma course in architecture or civil engineering or mechanical engineering or mechanical and electrical engineering or automobile engineering from a recognized institution has worked with a qualified architect or engineer or in a Government or quasi-Government department for a period of three years;
(d) has held the insurance surveyor certificate issued by the department of Insurance for a period of five years;
(e) has retired after putting in satisfactory service in the Income Tax Department or the Customs Department or judiciary or in a revenue collecting agency of the Government for period of not less than ten years in a post or posts in a grade not less than Grade 17; or
(f) for the purpose of valuation of such assets as require specialized knowledge not available to persons qualified under clauses (a), (b), (c), (d) and (e) of this sub-rule, any person, who is in the opinion of the Commissioner is fit to be appointed as a valuer.
(3) Notwithstanding anything contained in sub-rule (2), no person shall qualify for appointment as a valuer if the person -
(a) has been dismissed or removed from Government service;
(b) is an undischarged insolvent;
(c) has been convicted of any offence under any law or has been found guilty of misconduct in his professional capacity which, in the opinion of the Commissioner, renders him unfit to e registered as a valuer; or
(d) has been representing taxpayers before income tax authorities
(4) On receipt of an application under sub-rule (1), the Commissioner may make such inquiries or call for such further information or evidence as may be deemed necessary.
(5) If the Commissioner is satisfied that A person should be appointed as a valuer for the purposes of section 222, the Commissioner shall notify the person in writing of the decision.
(6) Where the Commissioner decides to refuse an application under this rule, the Commissioner shall give the applicant notice, in writing, of the decision including a statement of reasons for the decision.
(7) The appointment of a valuer may be terminated by the Commissioner at his discretion at any time without assigning any reason and without any compensation.
227. Scale of remuneration, fees and allowances for a valuer.-(1) A valuer appointed under section 222 shall not be paid any retention fee but would be entitled to remuneration at the following scale:-
Rs
Where the value of assets does not exceed 100,000 .. .. 500
Where the value of assets exceeds Rs 1 lac but does
not exceed Rs 299,999 .. .. .. 1,000
Where the value of assets exceeds Rs 300,000 but does not
exceed Rs 499,999 .. .. .. 1,500
Where the value of assets exceeds Rs 500,000 but does not
exceed Rs 1,499,999 .. .. .. 2,500
Where the value of assets exceeds Rs 1,500,000 but does not
exceed Rs 1,999,999 .. .. .. 5,000
Where the value of assets exceeds Rs 1,999,999 .. .. 10,000
(2) In addition to remuneration at the scale prescribed under sub-rule (I), a valuer shall be entitled to following fee and allowance -
(a) a fee of Rs 100 per day in the event of attendance before the Appellate Tribunal in connection with the valuation made in any case; and
(b) travelling expenses to which a Government servant in Grade 17 is entitled.
228. Valuation of assets.- (1) The valuation of immovable property for the purposes of section 111 of the Income Tax Ordinance 2001, shall be taken to be-
(a) in the case of open plot, the value determined by the development authority or government agency on the basis of the auction price in respect of similar plots in the area where the plot in question is situated;
(b) in the case of properties given on rent, the value equal to ten years capitalized value assessed on the annual rental value;
(c) in the case of agricultural land, the value equal to the average sale price of the sales recorded in the revenue record of the estate in which the land is situated for the relevant period/ time; or
(d) in any other case, the value determined by the District Officer (Revenue) or provincial authority authorized in this behalf for the purposes of stamp duty.
(2) For the purposes of section 111 and subject to sub-rule (2), the value of motor cars and jeeps shall be determined in the following manner, namely:-
(a) the value of the new imported car or jeep shall be the C.I.F. value of such car or the jeep, as the case may be, plus the amount of all charges, customs-duty, sales tax, levies octroi, fees and other duties and taxes leviable thereon and the costs incurred till its registration;
(b) the value of a new car or jeep purchased from the manufacturer or assembler or dealer in Pakistan, shall be the price paid by the purchaser, including the amount of all charges, customs-duty, sales tax and other taxes, levies, octroi, fees and all other duties and taxes leviable thereon and the costs incurred till its registration;
(c) the value of used car or jeep imported into Pakistan shall be the import price adopted by the customs authorities for the purposes of levy of customs-duty plus freight, insurance and all other charges, sales tax, levies, octroi, fees and other duties and taxes leviable thereon and the costs incurred till its registration;
(d) the value of a car or jeep specified in clause (a), (b) and (c) at the time of its acquisition shall be the value computed in the manner specified in the clause (a) (b) or (c), as the case may be, as reduced by a sum equal to ten per cent of the said clause for each successive year, up to a maximum of five years; or
(e) The value of a used car or jeep purchased by an assessee locally shall be taken to be the original cost of the car or the jeep determined in the manner specified in clause (a), (b) or (c) , as the case may be, as reduced by an amount equal to ten per cent for every year following the year in which it was imported or purchased from a manufacturer.
(3) In no case shall the value be determined at an amount less than fifty per cent of the value determined in accordance with clause (a), (b) or (c) or the purchase price whichever is more.
(4) For the purposes of section 61, the value of any property donated to a non-profit organization shall be determined in the following manner, namely:-
(a) the value of articles or goods imported into Pakistan shall be the value determined for the purposes of levy of customs duty and the amount of such duty and sales tax, levies, fees, octroi and other duties, taxes or charges leviable thereon and paid by the donor;
(b) the value of articles and goods manufactured in Pakistan shall be the price as recorded in the purchase vouchers and the taxes, levies and charges leviable thereon and paid by the donor;
(c) the value of articles and goods which have been previously used in Pakistan and in respect of which depreciation has been allowed, the written down value, on the relevant date as determined by the Commissioner ;
(d) the value of a motor vehicle shall be the value as determined in accordance with rule, and
(e) the value of articles or goods other than those specified above, shall be the fair market value as determined by the Commissioner.
229. Filing of returns, statements and documents and issuance of orders, notices through computers.- (1) Notwithstanding anything contained in these rules taxpayer or any person responsible for furnishing the prescribed statements or returns may furnish such statement or return, on computer media and in such language, program arrangement and data formats and representations which are compatible with those of the Income Tax Department and any other technical specification as the RCIT or Committees may prescribe; accompanied by a certificate in the following form and duly signed by the person authorised to sign such statement or return or the department may issue notice orders, or communication or production of documents in appeals or courts taken through computers or scanning images duly certified, namely:-
CERTIFICATE
I,_______________ S/o_____________ do hereby certify that the data and information contained in the enclosed disk, diskette, tape or cartridge or scanning image or electric communication is complete, correct and true to the best of my knowledge and belief.
I, further certify that the return of income contained in the aforementioned media have been duly verified and affirmed to be true by the respective assesses.
Signature_____________________
Name________________________
(in block letters)
Designation____________________
Date_________________________
(2) Notwithstanding anything contained in these rules, any order required to be made or notice to be issued or assessment or computation made, or document required to be prepared or issued under the Ordinance may be generated through the computer system and no such order, notice, assessment, computer document shall require the signature of the concerned officer whose name and designation is specified on the aforementioned documents.
230. Charges for various forms.-The following forms shall be provided after 30th June, 2002 on payment as mentioned against each:-
Form Charge
(i) Form of return of total income. Rupees Five each.
(ii) Form of Wealth statement under
section 116 of the Income Tax Rupees Five each.
Ordinance.
231. Computation of export profits and tax attributable to export sales.- (1) Where a taxpayer exports any goods manufactured in Pakistan, the taxpayer’s profits attributable to export sales of such goods shall be computed in the manner specified hereunder:-
(a) where a taxpayer maintains separate accounts of the business of export of goods manufactured in Pakistan, the profits of the export business shall be taken to be such amount as may be determined by the Commissioner in accordance with the provisions of Ordinance on the basis of such accounts; or
(b) in other cases, the profits of such business shall be taken to be an amount which bears to the total profits of the business of the assessee from the sale of goods, the same proportion as the export sales of goods manufactured in Pakistan hear to the total sales of goods.
(2) Where the total income of a taxpayer includes any profit from the export of goods manufactured in Pakistan, the tax attributable to such profits shall be an amount which bears to the tax payable on the income the same proportion as such profits bear to the total income.
(3) In this rule, unless there is anything repugnant in the subject or context:-
(a) “export sales” means the fob price of the goods exported;
(b) “total profits” means:-
(i) the aggregate of export sales as determined under clause (a); and
(ii) the ex-factory price of goods sold in Pakistan, where the goods exported out of Pakistan were manufactured by the exporter; or
(iii) the ex-godown price of goods sold in Pakistan, in other cases.
231A. Procedure for issuance of advance ruling under section 206A. - (1) A non-resident person desiring an advance ruling under section 206A of the Ordinance, 2001 (XLIX of 2001) shall make an application to the Central Board of Revenue in the following form set out in the Schedule below.
(2) The application under sub-rule (1) shall be considered by a Committee consisting of the following members, namely: -
(a) Chairman, Central Board of Revenue - Chairman
(b) Member (Direct Taxes), CBR - Member
(c) Additional Secretary, Law, Justice - Member
and Human Rights Division.
(3) The Committee may obtain comments of the Commissioner of Income Tax concerned and, if it considers necessary, advice of a legal expert on the application and decide the issue, as it may deem appropriate, in a joint sitting or through circulation amongst its members.
(4) Advance ruling for the purposes of this rule means determination by the Committee in relation to the transaction which has been undertaken or is proposed to be undertaken by a non-resident person the question of law specified in the application.
(5) The advance ruling shall be binding on the Commissioner only in respect of the specific transaction on which such advance ruling is issued. The advance ruling shall continue to remain in force unless there is a change in facts or in the law on the basis of which the advance ruling was pronounced.
(6) The copy of the advance ruling pronounced by the Central Board of Revenue shall be provided to the applicant and to the Commissioner of Income Tax having jurisdiction over the case.
(7) Notwithstanding anything contained in this rule, the advance ruling shall cease to be binding on the Commissioner, if it is subsequently found to have been obtained by fraud or misrepresentation of facts about the nature of the transaction on which advance ruling was issued.
231B. Withdrawal of application. - The applicant may withdraw the application made under rule 231A at any time before the advance ruling is issued.
[See sub-rule (1)]
To
The Chairman,
Central Board of Revenue,
Islamabad.
Dear Sir,
The undersigned being duly authorized hereby apply on behalf of _________________(name of the non-resident person) for advance ruling under section 206A of the Income Tax Ordinance, 2001 (XLIX of 2001).
Necessary details of the transaction are set out below and in the Annexure to this application.
The following documents as required under rule 231A of Income Tax Rules, 2002 are enclosed: -
(a) ____________________________
(b) ____________________________
(c) ____________________________
(d) ____________________________
(e) ____________________________
Yours faithfully,
Signature __________________
Name (In block letters) _____________
Designation ________________
ANNEXURE
[See paragraph 2 of the Schedule]
(1) Name of the non-resident person (in block letters) __________________________ ____
(2) Permanent address and telephone and fax numbers of the non-resident person
(in block letters) __________________________________________________________
(3) Address in Pakistan _________________________________________________
(4) Telephone No. ___________________ Fax No. __________________________
(5) Country of Origin __________________________________________________
(6) National Tax Number _______________________________________________
(7) The following is the statement of the relevant facts of the transaction having bearing on the question(s) on which the advance ruling is required (please annex extra sheet, if required):
(8) Statement containing the applicant’s interpretation of law or facts, as the case may be, in respect of the question(s) on which advance ruling is required (please annex extra sheet, if required) is as follows:-
(9) The undersigned, solemnly declare that:-
(a) full and true particulars of the transaction relevant for the purposes of advance ruling applied for have been disclosed and no material aspect affecting the determination of the application of the Income Tax Ordinance, 2001, in this behalf has been withheld; and
(b) that the above issue(s) is/ are not pending before any Income Tax Authority, Appellate Tribunal or Court for adjudication.
Yours faithfully,
Signature _________________
Name (In block letters) _____________
Designation _______________
Address in Pakistan _________
Telephone No. _____________
Fax No. _________________.”.
231C. Income tax alternate dispute resolution.- (1) This rule shall apply to all cases of disputes brought or specified for resolution under section 134A.
(2) In this rule, unless there is anything repugnant in the subject or context, -
(a) “applicant” means a person or a class of persons who has brought a dispute for resolution under section 134A;
(b) “Board” means the Central Board of Revenue.
(c) “Committee” means a Committee constituted under sub-section (2) of section 134A; and
(d) “dispute” means any matter of income tax pertaining to liability of income tax, admissibility of refund, waiver or fixation of penalty or fine, relaxation of any period or procedural and technical condition as specified in sub-section (1) of section 134A.
(3) Any person or class of persons interested for resolution of any dispute under section 134A shall submit a written application for alternative dispute resolution to the Board in the form as set out in the Schedule below.
(4) The Board, after examination of the contents of an application by a taxpayer and facts stated therein and on satisfaction that the application may be referred to a Committee for the resolution of the hardship or dispute, shall constitute a Committee consisting of the following members, namely:-
(a) the Director General, Large Taxpayers Unit or Commissioner, Medium Taxpayers Unit or any other Commissioner or officer of the Income Tax Department nominated by the Board;
(b) a Fellow of Chartered Accountants, registered with the Institute of Chartered Accountants of Pakistan or an Associate of Cost and Management Accountant, an advocate of High Court or Income Tax Practitioner having at least twenty-five reported cases in a reputed journal to his credit; and
(c) a reputable taxpayer.
(5) The Board may appoint one of the members of the Committee to be its Chairman.
(6) An application filed under this rule may be disposed of by the Committee within thirty days of its constitution:
Provided that the time so specified may, if requested by the Chairman of the Committee for reasons to be recorded in the request, be extended by the Board to such extent and subject to such conditions and limitations as it may deem proper.
(7) The Chairman of the Committee shall be responsible for deciding the procedure to be followed by the Committee which may inter-alia, include the following, namely:-
(a) to decide about the place of sitting of the Committee;
(b) to specify date and time for conducting proceedings by the Committee;
(c) to supervise the proceedings of the Committee;
(d) to issue notices by courier or registered post or electronic mail to the applicant;
(e) to requisition and produce relevant records or witnesses from the Commissioner or other concerned quarters;
(f) to ensure attendance of the applicant for hearing either in person or through an advocate, representative or a tax consultant;
(g) to consolidate recommendations of the Committee and submission of a conclusive report to the Board; and
(h) for any other matter covered under these rules.
(8) The Committee may conduct inquiry, seek expert opinion, direct any officer of income tax or any other person to conduct an audit and make recommendations to the Committee in respect of dispute or hardship.
(9) The Committee may determine the issue and may thereafter seek further information or data or expert opinion or make or cause to be made such inquiries or audit as it may deem fit, to formulate its recommendations in respect of any matter specified in sub-section (1) of section 134A.
(10) The applicant may withdraw the application made under sub-rule (3) of these rules at any time before the Committee submits its recommendations to the Board.
(11) The applicant shall pay members of the Committee, other than public servant, remuneration covering travelling allowance and daily allowance. The extent and amount of remuneration and the manner of payment thereof shall be decided by the Chairman of the Committee under intimation to the applicant.
(12) The Chairman of the Committee shall send a copy of the recommendations of the Committee to the Board, applicant and the concerned Commissioner, simultaneously.
(13) The Board on its own motion or on the request of the applicant, may refer back the recommendations of the Committee for rectification of any mistake apparent from record or for reconsideration of the facts or law, as the case may be, not considered earlier by the Committee.
(14) The Committee after rectification of the mistake or reconsideration of the facts or law as aforesaid shall furnish to the Board its fresh or amended recommendation within such period as specified by the Board.
(15) The Board, after examining the recommendations of the Committee shall finally decide the dispute or hardship and make such orders as it may deem fit for the resolution of the dispute or hardship under intimation to the applicant, Chairman of the Committee and the concerned Commissioner:
Provided that the resolution reached by the taxpayer and the Board shall not bind them for tax year not covered by the agreement. Any such resolution shall not be used as precedent, except as provided in the agreement.
(16) The copy of order passed by the Board shall be provided to the applicant and to the Commissioner having jurisdiction over the case for modification of all decisions, orders and judgements passed in respect of the said dispute or hardship, within such period as may be specified by the Board in the order.
(17) On receipt of the Board’s order as aforesaid, the concerned Commissioner shall implement the order in such manner and within such period as may be specified by the Board in the order.
(18) Notwithstanding any thing contained in this rule an order passed by the Board shall cease to exist if it is subsequently found to have been obtained by fraud or misrepresentation of facts about the nature of dispute or hardship on which the said order was passed and all decisions, orders and judgements modified under the said order shall deemed to be re modified.
[See sub-rule (3)]
under section 134A of the Income Tax Ordinance, 2001
To
The Chairman,
Central Board of Revenue,
Islamabad
Dear Sir,
The undersigned being duly authorized hereby apply _________________ (name and address of the applicant) for dispute or hardship resolution under section 134A of the Income Tax Ordinance, 2001 (XLIX of 2001).
2. Necessary details of the dispute or hardship are set out below and in the annexure to this application.
3. A request is made to constitute a Committee as provided under sub-rule (4) of rule 231C of Income Tax Rules, 2002.
4. The following documents as are necessary for the resolution of the dispute or hardship are enclosed.
(a) _________________________________________________________
(b) _________________________________________________________
(c) _________________________________________________________
Yours faithfully,
Signature ____________
Name _______________
(in block letters)
Address ______________
Date _________________
[See paragraph 2 of the Schedule]
(1) Name of the applicant _________________________________________
(in block letters)
(2) National tax number ___________________________________________
(3) Address of the applicant ________________________________________
(4) Telephone Number ___________________ Fax Number _____________
(5) The Commissioner with whom a dispute has arisen __________________
(6) The following is the statement of the relevant facts and law with respect to dispute or hardship having bearing on the question(s) on which the resolution is required (Please annex extra sheet, if required):-
(7) Statement containing the applicant’s interpretation of law or facts, as the case may be, in respect of question(s) on which resolution is required (Please annex extra sheet, if required) is as follows:-
(8) The extent or the amount of tax which the applicant agrees to pay, if any.
(9) The undersigned, solemnly declare that,-
(a) full and true particulars of the dispute or hardship for the purposes of resolution have been disclosed and no material aspect affecting the determination of the application filed under the Income Tax Ordinance 2001, in this behalf has been withheld;
(b) that the above issue(s) is/are pending before ____________ (name of the appellate forum, ITAT or court)/ not pending before any forum, ITAT, High Court or Supreme Court of Pakistan for adjudication; and
(c) I shall pay the remuneration of the members, other than a public servant, of the Committee to the extent as the Chairman of the Committee may decide.
Yours faithfully,
Signature ____________
Name _______________
(in block letters)
Date _________________.”.
232. Repeal & Savings.- (1) The following rules as in force before the commencement of these rules are hereby repealed, namely Income Tax Rules, 1982;
(2A) Notwithstanding anything contained in sub-rule (1), rules 190 to 198, 201, 201D, 201F, 202(C), 202D, 202E, 202F of Income Tax Rules, 1982 shall stand repealed on the first day of July, 2003; and
(2B) Any proceedings including proceedings under part IX (Chapters A, B, C, D, E & F) initiated, or any action taken or initiated, or approval sought, under Income Tax Rules, 1982 prior to 01.07.2002; such proceedings, action, or approval sought shall be completed under the Income Tax Rules, 1982 and to that extent Income Tax Rules, 2002 would not apply.”
[C. No. 4(2)IT-Jud/02]
Vakil Ahmad Khan
Member (Direct Taxes)/
Additional Secretary
231A. Inserted bye SRO No 130(I)/2004 Dated 27th February 2004
231B. Inserted bye SRO No 130(I)/2004 Dated 30th February 2004
231C. Inserted bye SRO No 748(I)/2004 Dated 30th August 2004
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