Tax Book 2023

Scope and Payment of Tax Chapter- 05

2. 
   

   Any director or partner who pays tax under sub-section (1) shall be entitled to recover the
   tax paid from the company or a share of the tax from any other director or partner, as the
   case may be.

   
   


3. 
   

   A shareholder who pays tax under sub-section (1) shall be entitled to recover the tax paid
   from the company or from any other shareholder, owning not less than ten percent of the
   paid up capital, in proportion to the shares owned by that other shareholder.”; and

   
   


4. 
   

   The provisions of this Act shall apply to any amount due under this section as if it were
   tax due under an order for assessment made under this Act.

   
   


5. 
   

   Tax paid on stocks acquired before registration [U/S 59]

   
   

The tax paid on goods purchased by a person who is subsequently required to be registered u/s

14 due to new liabilities or levies or gets voluntary registration shall be treated as input tax,

provided that such goods were purchased by him from a registered person against an invoice

issued during a period of 30 days before making an application for registration and

constitute his verifiable unsold stock on the date of compulsory registration or on the date of

application for registration or for voluntary registration:

Provided that where a person imports goods, the tax paid by him thereon during a period of 90

days before making an application for registration shall be treated as an input tax subject to

the condition that he holds the bill of entry relating to such goods and also that these are

verifiable unsold or un-consumed stocks on the date of compulsory registration or on the date of

application for registration or for voluntary registration.

25. Powers to deliver certain goods without payment of tax [U/S 60]

The Board with the approval of the Federal Government may authorise the import of goods or

class of goods, without payment of the whole or any part of the tax payable thereon to the

following persons, namely:-

(i) registered importers importing such goods temporarily with a view to subsequent

exportation;

(ii) registered manufacturer-cum-exporters who import raw materials and intermediary

products for further manufacture of goods meant for export.

26. Repayment of tax to persons registered in Azad Jammu and Kashmir [U/S 61A]

The Board may authorize the repayment in whole or in part of the input tax paid on any goods

acquired in or imported into Pakistan by the persons registered in Azad Jammu and Kashmir as

are engaged in making of zero-rated supplies.

27. Exemption of tax not levied or short levied as a result of general practice [U/S 6 5 ]

Notwithstanding anything contained in this Act, if in respect of any supply the Board with the

approval of the Federal Government is satisfied that inadvertently and as a general practice:

(a) tax has not been charged in any area on any supply which was otherwise taxable, or

according to the said practice the amount charged was less than the amount that should

have actually been charged;

(b) the registered person did not recover any tax prior to the date it was discovered that the

supply was liable to tax; and

(c) the registered person started paying the tax from the date when it was found that the

supply was chargeable to tax;

it may, by a notification in the official Gazette, direct that the tax not levied or short levied as a

result of that inadvertent practice, shall not be required to be paid for the period prior to the

discovery of such inadvertent practice.

28. Liability of the registered person for the acts of his agent [U/S 68]