ISLAMABAD: The Islamabad High Court has directed the Large Taxpayers Unit (LTU) to decide the fate of appeal filed by M/S Fauji Fertilizer Bin Qasim Limited seeking tax exemption on its business profit under provisions of domestic and international taxation rules to avoid double taxation.
The appellant, M/S Fauji Fertilizer Bin Qasim Limited had filed a plea before the IHC seeking court’s verdict on the matter, which it stated as double taxation on its business profits by the LTU, Islamabad.
The appellant submitted in the court that business profit being generated after its collaboration with a Singapore-based partner did not owe taxation twice under the international law and agreement between two republics. It had challenged LTU order number 97 dated September 09, 2013 creating demand of duty/taxes.
IHC single bench comprising Justice Aamer Farooq heard the case and directed the main respondent, LTU to decide the fate of company’s departmental appeal within 60 days.
The appellant had claimed that LTU’s order issued in violation and ignorance of domestic taxation laws, and the Agreement for Avoidance of Double Taxation (AfAoDT).
Islamabad LTU Inland Revenue (IR) chief commissioner, commissioner, deputy commissioner and Federation of Pakistan through Federal Board of Revenue (FBR) was made respondent in the case.
