To facilitate exchange companies, the Federal Board of Revenue has abolished 0.2 percent withholding tax on cash withdrawal from bank accounts exclusively dedicated for authorised business related transactions of the exchange companies duly licensed/authorised by the State Bank of Pakistan (SBP).
In this connection, the FBR has issued an SRO.383(I)/2012 on Tuesday to announce specific exemption from advance tax on cash withdrawal by exchange companies as authorised by State Bank of Pakistan (SBP). According to the notification, the provision of section 231A of the Income Tax Ordinance 2001 shall not apply in respect of any cash withdrawal by exchange companies licensed and authorised by the State Bank of Pakistan, specifically on their bank accounts exclusively dedicated for authorised business related transaction.
This is subject to the condition that the exemption under this clause shall be available to exchange companies who are issued exemption certificate by the concerned Commissioner Inland Revenue for a financial year. Secondly, the Commissioner shall issue the exemption certificate after obtaining relevant details and particulars of the bank accounts.
Following is the text of the notification issued here on Tuesday: In exercise of 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 amendments shall be made in the Second Schedule to the said Ordinance, namely:
In the aforesaid Schedule:
---- "(xliv) Any amount donated to Federal Board of Revenue Foundation", and
In clause 66, after sub clause (xxvii) the following new sub clause shall be added, namely:
---- "(xxviii) Federal Board of Revenue Foundation,".
In part IV, after clause (61), the following new clause shall be inserted, namely:-
---- "(61A) The provision of section 231A shall not apply in respect of any cash withdrawal by exchange companies duly licensed and authorised by the State Bank of Pakistan on their bank account exclusively dedicated for their authorised business related transaction:
Provided that
---- (a) exemption under this clause shall be available to exchange companies who are issued exemption certificate by the concerned exemption certificate by the concerned Commissioner Inland Revenue for a financial year; and
---- (b) the Commissioner shall issue the exemption certificate after obtaining relevant details and particulars of the bank accounts".