2015 PTD 1926

Case Laws / Head Notes / Paras

Minimum tax---Assesse, a distributor---Issue requiring consideration and adjudication was as to whether commission/margin of profit was amenable to the minimum tax or turnover in the case of a distributor---Marginal profit/commission as “turnover” in case of a “distributor” was amenable to minimum tax under S.133 of Income Tax Ordinance, 2001---Right of sales of goods by distributor was limited, restricted and controlled by the principal, which could not be treated as normal business/sales---For the services rendered by the distributor, principal/manufacturer would allow him remuneration in the form of discount at a fixed percentage of the value of goods distributed---Ordinary trader, having purchased the goods, had the right to sell to any person, at any rate and in any manner he could ch...