The APNS had requested the Federal Board of Revenue to clarify implication of the new Section 153A on the newspapers and periodicals in the country. The Finance Act, 2012 has inserted the above section in the Income Tax Ordinance 2001 which reads as under :
For Section 153A, the following shall be substituted namely:-
“Payment of traders and distributors: (I) Every manufacturer, at the time of sale of distributors, dealers and wholesalers, shall collect tax at the rate specified in Part IIA of the First Schedule, from the aforesaid persons, to whom such sales have been.
Tax credit for the tax collected under sub-section (I) shall be allowed in computing the tax due by the person on the taxable income for the tax in which the tax was collected.”
We reproduce hereunder the reply received from the FBR clarifying that new Section 153A does not apply newspapers / periodicals. The reply is reproduced as under :
“ I am directed to state that the provisions of the newly inserted section 153A of the Income Tax Ordinance, 2001 are not applicable in the case of newspaper establishments.”