KARACHI: Federal Board of Revenue (FBR) has withdrawn income tax credit facility to register persons under Sales Tax Act, 1990.
Through Finance Bill 2017, Section 65A of Income Tax Ordinance, 2001 has been deleted under which the tax credit was allowed at three present to sales tax registered person.
The section is read as:
65A. Tax credit to a person registered under the Sales Tax Act, 1990. —
(1) Every manufacturer, registered under the Sales Tax Act, 1990, shall be entitled to a tax credit of three per cent of tax payable for a tax year, if ninety per cent of his sales are to the person who is registered under the aforesaid Act during the said tax year.
(2) For claiming of the credit, the person shall provide complete details of the persons to whom the sales were made.
(3) No credit will be allowed to a person whose income is covered under final tax or minimum tax.
(4) Carry forward of any amount where full credit may not be allowed against the tax liability for the tax year, shall not be allowed.
