Advance tax is declared as final tax but there are exceptions to the same which have been provided in proviso to S. 148(7) of Income Tax Ordinance, 2001 which keeps advance tax paid on imports including machinery and raw material, to be utilized by importer from being declared the final tax----Such advance tax paid by importer, is to be adjusted as tax credit within the contemplation of S. 168(2)(b) of Income Tax Ordinance, 2001----Although, advance tax collected under S. 148 of Income Tax Ordinance, 2001, has not been included in taxable income, as provided under S. 4 of Income Tax Ordinance, 2001, yet payments made thereunder have been expressly brought within the scope of charging section by its clear stipulation in S. 4(5) of Income Tax Ordinance, 2001.
| Court | Year | Appellant vs Respondent | Sections | Topic |
|---|---|---|---|---|
| Peshawar High Court | 2016 | M/S. TAJ PACKAGES COMPANY (PVT.) LTD., Vs GOVERNMENT OF PAKISTAN AND 6 OTHERS |
Income Tax Ordinance (XLIX of 2001)—
----Ss. 4, 148(7) & 168(2)(b) |
Advance Tax----Scope |