ISLAMABAD (July 17 2010): The Federal Board of Revenue has announced 5 percent tax credit as an incentive for enlistment of companies at the stock exchanges. According to an income tax circular issued here on Friday, to encourage companies for enlistment at any registered stock exchange in Pakistan.
A new section 65C has been introduced through Finance Act, 2010 in the Income Tax Ordinance, 2001, whereby companies opting for enlistment shall be entitled to 5 percent tax credit benefit on tax payable in the year of its enlistment.
The FBR has also allowed 10 percent tax rebate to the companies on purchase and installation of plant and machinery from July 1, 2010 to June 30, 2015 to encourage companies for investment in balancing, modernising and replacing the already installed plant and machinery.
In order to encourage companies in up dating the already installed plant and machinery in an industrial undertaking set up in Pakistan and owned by the company under the provisions of newly inserted section 65B, 10 percent rebate in income tax payable for the tax year in which such plant and machinery is installed, shall be admissible if such investment is made at any time between July 1, 2010 and June 30, 2015. In case where investment in purchase of machinery and completion of installation thereof do not occur in the same tax year, tax rebate shall be admissible in the tax year of installation of such plant and machinery.
In cases where no tax is payable by the taxpayer in the year of installation of plant and machinery or where the tax payable is less than the amount of tax credit, the amount of such credit or the amount of unadjusted tax credit, as the case may be, shall be carried forward and deducted from the tax payable by the taxpayer in respect of the following tax year, and so on, but no amount shall be carried forward for more than two tax years and shall not exceed in aggregate 10 percent limit as specified, the income tax circular added.
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A new section 65C has been introduced through Finance Act, 2010 in the Income Tax Ordinance, 2001, whereby companies opting for enlistment shall be entitled to 5 percent tax credit benefit on tax payable in the year of its enlistment.
The FBR has also allowed 10 percent tax rebate to the companies on purchase and installation of plant and machinery from July 1, 2010 to June 30, 2015 to encourage companies for investment in balancing, modernising and replacing the already installed plant and machinery.
In order to encourage companies in up dating the already installed plant and machinery in an industrial undertaking set up in Pakistan and owned by the company under the provisions of newly inserted section 65B, 10 percent rebate in income tax payable for the tax year in which such plant and machinery is installed, shall be admissible if such investment is made at any time between July 1, 2010 and June 30, 2015. In case where investment in purchase of machinery and completion of installation thereof do not occur in the same tax year, tax rebate shall be admissible in the tax year of installation of such plant and machinery.
In cases where no tax is payable by the taxpayer in the year of installation of plant and machinery or where the tax payable is less than the amount of tax credit, the amount of such credit or the amount of unadjusted tax credit, as the case may be, shall be carried forward and deducted from the tax payable by the taxpayer in respect of the following tax year, and so on, but no amount shall be carried forward for more than two tax years and shall not exceed in aggregate 10 percent limit as specified, the income tax circular added.
-www.brecorder.com
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