The Federal Board of Revenue (FBR) has allowed withholding tax exemption on the payments made on account of sale or supply of goods or provision or rendering of services during construction and operations of the Special Economic Zone projects at Thar coal fields. In this regard, the FBR amended the Second Schedule of the Income Tax Ordinance 2001 here on Saturday.
The FBR has also allowed tax exemption under section 150 (dividends) of the Income Tax Ordinance 2001 to the dividend income of the shareholders of Special Economic Zone projects at Thar coal fields. Following is the text of the SRO.317(I)/2011 issued here on Saturday:
In exercise of the powers conferred by sub-section (2) of section 53 of the Income Tax Ordinance 2001 (XLIX of 2001), the Federal Government is pleased to direct that the following further amendment shall be made in the Second Schedule to the said Ordinance, namely. In the aforesaid Schedule, in Part-IV, after clause (77) the following shall be added, namely. "(78) With respect to a project situated in the Special Economic Zone at Thar coal fields.
i. the dividend income of the shareholders of such a project shall be exempt from provisions of section 150 from the date of commencement of business till 30 years from such date and ii. the payments made on account of sale or supply of goods or providing or rendering of services during project construction and operations, shall be exempt from the provisions of secton153", notification added.
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