The manufacturers of cooking oil or vegetable ghee shall be chargeable to 2 percent tax on purchase of locally produced edible oil, reveals Finance Act, 2015 issued on Tuesday. Finance Act 2015 said that after section 148, the following new section shall be inserted, namely:- "148A. Tax on local purchase of cooking oil or vegetable ghee by certain persons.- (i)The manufacturers of cooking oil or vegetable ghee, or both, shall be chargeable to tax at the rate of two percent on purchase of locally produced edible oil.
(2) The tax payable under sub-section (1) shall be final tax in respect of income accruing from locally produced edible oil. (29) in section 147, for sub section (4A), the following shall be substituted namely: (4A) Any taxpayer who is required to made payment of advance tax in accordance with sub-section (4), shall estimate the tax payable for the relevant tax year, at any time before the second instalment is due. In case the tax payable is likely to be more than the amount that the taxpayer is required to pay under sub-section (4), the taxpayer shall furnish to the Commissioner on or before the due date of the second quarter an estimate of the amount of tax payable by the taxpayer and thereafter pay fifty per cent of such amount by the due date of the second quarter of the tax year after making adjustment for the amount, if any, already paid in terms of sub-section (4). The remaining fifty per cent of the estimate shall be paid after the second quarter in two equal instalments payable by the due date of the third and fourth quarter of the tax year.
(33) in section 152, after sub-section (4), the following new sub-section shall be inserted; namely: (4A) The Commissioner may, on application made by the recipient of a payment referred to in sub-section (2A) and after making such inquiry as the Commissioner thinks fit, may allow in cases where the tax deductible under sub-section (2A) is adjustable, by order in writing, any person to make the payment, without deduction of tax at a reduced rate, it added.