INCOME TAX RULES, 1982 - PakSearch.com

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48C. Procedure for approval of an industrial undertaking for the purpose of clause (121A) of Part-I of the Second Schedule to the Ordinance.-
(1) A company seeking approval of an industrial undertaking owned by it for purposes of clause (121A) of Part-I of the Second Schedule to the Ordinance shall make an application to the Board in the Form annexed hereto.

(2) The application referred to the sub-rule (1) shall be accompanied by the following documents, namely:-
(i) a copy of the Memorandum and Articles of Association of the company;
(ii) a copy of the certificate of incorporation of the company;
(iii) an undertaking from the Managing Director of the company to the effect that the industrial undertaking manufactures or shall manufacture, on]y such goods or materials as are specified in the application and no other goods or materials shall be manufactured during the period of tax exemption;
(iv) an undertaking from the Managing Director of the company to the effect that apart from manufacture of goods or material specified in the application no other business shall be conducted by the company during the period of tax exemption;
(v) an undertaking from the Managing Director of the company that no amendment or alteration in the Memorandum or Articles of Association of the company shall be made during the period of tax exemption;
(vi) a certificate from the Ministry of Industries that the industrial undertaking qualifies as a pioneer industry; and
(vii) a copy of the feasibility report of manufacturer's printed brochure to prove that-
(a) the undertaking is based on highly sophisticated technology;
(b) the technology employed in the underking has fast obsolescence;
(c) the investment in the undertaking involves high risk; and
(d) the goods manufactured or to be manufactured are such that neither these goods, nor identical or close substitutes thereof, are being manufactured are being manufactured in Pakistan.

(3) The Board may call for such additional information, particulars, certificates or documents from the company as it may teem proper, or may make, or cause to be made, such enquiries as it may consider necessary for processing the application referred to in sub-rule (1).

(4) The Board, may, at any time, withdraw the approval earlier granted if it is satisfied that-

(i) the company had furnished any inaccurate or wrong particulars or information or had furnished any false document or certificate or had concealed any material information or particulars; or

(ii) the company has violated any of the terms of any certificate or undertaking specified in clauses (iii), (iv), (v), (vi) of sub-rule (2).

FORM OF APPLICATION FOR APPROVAL UNDER CLAUSE (121A) OF PART-I OF THE SECOND SCHEDULE TO THE INCOME TAX ORDINANCE, 1979

To,
The Chief (Direct Tax Operations),
Central Board of Revenue,
Islamabad.

Subject: Approval of ......................(Name of industrial undertaking) under clause (121A) of Part-I of the Second Schedule to the Income Tax Ordinance, 1979.

I, the undersigned, hereby apply on behalf of ......………...(Name of the company) for approval of ................(Name of the industrial undertaking) located at .......................................(Give exact location) for purposes of clause (121A) of Part I of the Second Schedule to the Income Tax Ordinance, 1979.

2. Necessary particulars are set out below and in the Schedule to this application.
3. The documents, certificates and undertakings as required and sub-rule (2) of rule 48C of the Income Tax Rules, 1982, are annexed to this application.

Date______________	Signature: _________________
Place__________________	Name ________________ (In capital letters)
	Designation: _______________ (Managing Director)

SCHEDULE

1. Name of the company and address of the registered office.	___________
2. Location of the industrial undertaking (give exact location) with name of tehsil, district and province.	___________
3. Date of commencement of commercial production (see Note 1).	___________
4. Goods or material manufactured, or to be manufactured (see Note 2).	___________

NOTES:

1. The date of commercial production shall be certified by the Director or Additional Director of Industries Department of the Provincial Government concerned.
2. The detailed description of each of the goods or materials manufactured or to be manufactured should be given.

48D. Conditions for approval of leasing company claiming depreciation. etc.- The following conditions shall be fulfilled by a leasing company seeking approval for claiming depreciation under Third Schedule to the Ordinance or expenditure 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 licence by the Controller of Capital Issues to operate under the terms and conditions specified therein; and

(ii) the leasing company 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.

48E. Conditions for approval of modaraba company claiming depreciation, etc.- The following conditions shall be fulfilled by a modaraba company seeking approval for claiming depreciation under Third Schedule to the Ordinance or expenditure on the leases under this rule, namely:-

(i) the modaraba company is engaged principally in the business of leasing of assets and has been issued a licence by the Controller of Capital Issues under the terms and conditions specified therein; and

(ii) the modaraba company 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.

48F. Procedure and conditions for approval of agreement for the purpose of reduction in tax under clause (7) of Part-II of the Second Schedule to the Income Tax Ordinance, 1979.- (1) An application for approval of agreement for the purpose of reduction in tax on export of certain services under clause (7) of Part-II of the Second Schedule to the Income Tax Ordinance (XXXI of 1979), shall be in duplicate and specify the following particulars, namely:-
(a) Name of assessee.
(b) National Tax Number.
(c) Business address.
(d) In case of company, address of its Registered Office.
(e) Nature of services to be provided outside Pakistan.

(2) The application referred to in sub-rule (1) shall be signed and verified by the assessee and shall be accompanied by two copies of the agreement and following particulars, namely:-
(i) Co-relation of services rendered outside Pakistan with the local field of the assessee's business or profession in Pakistan; and

(ii) details of consideration settled for services rendered outside Pakistan.

(3) The following terms and conditions are laid down for approval of agreement for providing services outside Pakistan for the purpose of reduction of tax under clause (7) of Part-II of the Second Schedule to the Income Tax Ordinance, 1979:
(i) The agreement shall specify the following, namely:-
(a) exact nature of services to be provided outside Pakistan;
(b) particulars of employees or personnel engaged or exported out of Pakistan;
(c) the ratio between Pakistani and foreign employees engaged outside Pakistan for the purpose;
(d) the details of investments to be made outside Pakistan; and
(e) the particulars of Bankers both local as well as foreign.

(ii) The agreement shall indicate that the income from providing services outside Pakistan is to be received in Pakistan in foreign exchange through banking channel.

(iii) The agreement shall state its period of currency.

(4) In case a Pakistani assessee is liable to tax in the country in which the
services are rendered, the assessee shall be entitled to tax credit, for tax paid abroad against his income assessed on a global basis and the tax rebate shall apply to only so much of the tax payable in Pakistan as is in excess of the tax paid or payable abroad.
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