Tax credit on employment generation by manufacturers (Section 64B)

By -

This blog is in continuation to the series "Curtailing the Tax Liability (Part II) - Tax Credits".


Disclaimer: This blog will be updated over the period of time with practical examples, sample letters and relevant case laws and due to the volatility of tax statutes it is subject to unprecedented changes as and when required.



Tax credit on employment generation by manufacturers (Section 64B)




A manufacturing company established between July 1, 2015 – June 30, 2019 (trial or commercial) shall be entitled for tax credit upto 10 years.



Computation




The tax credit shall be equal to 2% of the tax payable for every 50 employees registered with The Employees Old Age Benefits Institution or the Employees Social Security Institutions of Provincial Governments during the tax year, subject to a maximum of 10% of the tax payable.



Exception




The manufacturing unit is not established by the splitting up or reconstruction or reconstitution of an undertaking already in existence or by transfer of machinery or plant from an undertaking established in Pakistan at any time before the 1st July 2015.



NOTE: In addition to above please click here to read Miscellaneous Provision of Tax Credit (Section 65);




Comments

  1. julianne sx3 June 2021 at 06:13

    I admire your unique way of writing especially the style of using the idioms and phrases which is mind-blowing. I hope you will not mind if I adopt this style of your. Many thanks. family lawyers near me free consultation

    ReplyDelete

Post a Comment

Live Stream

Legal Advise

Legal Advise

Taxation Training

Taxation Training

Popular posts from this blog

Procedure for registering mobile phones of persons returning to/visiting Pakistan

By -
Image
MOBILE TAX CALCULATOR NOTE: Please bear in mind that these figures are very close to,  but  NOT  the exact amount  you will be required to pay in tax. For simplicity's sake, the calculator also assumes that you are a tax non-filer. The exchange rate is assumed to be $1=Rs140. CLICK HERE   HOW TO REGISTER MOBILE PHONES BY FORIEGN TRAVELERS - DAWN NEWS The Federal Board of Revenue (FBR) has allowed sixty days period for international travelers to get duty-free registration of mobile    THE NEWS APPLICABLE DUTY/TAX STRUCTURE ON IMPORT OF MOBILE HANDSETS PCT (Pakistan Customs Tariff Code for Classification): 8517.1219  PCT Duty & Taxes 8517.1219 Customs/ Regulatory Duty  (i) Rs.250/set upto C&F Value of US $ 60;  (ii) @10% Adval of C&F value above US $ 60 & upto US $ 130;  (iii)@20% Adval of C&F value above US $ 130.  Sales Tax (S.No.2of the Ninth Schedule to ...
Read more

Taxation of Gratuity in Pakistan

By -
Image
Following are the procedures of taxation of gratuity laid down in the Income Tax Ordinance,  2001. We have summarized all the provisions of Income Tax Ordinance, 2001 relating to Gratuity in one place for the ease of our readers. Taxation of gratuity under the head Income From Business In the head “Income from Business” if contribution is made to an unapproved Gratuity than no deduction will be allowed for the same- Section 21(e) of the Income Tax Ordinance, 2001 Taxation of gratuity for Salaried Individuals Gratuity is part of salary as specified under section 12(2)(a) and Six Schedule Part III Clause 4 of the Income Tax Ordinance, 2001.  Exemption criteria under Second Schedule Part I Clause 13 Any Gratuity received on retirement of employee by employee himself or by his legal heirs after death of employee shall be exempt from levy of income tax subject to the following limits not exceeding:  1)     ...
Read more

How to obtain exemptions under various provsions of Income Tax Ordinance, 2001 - Sample Letters included

By -
Image
1. INTRODUCTION 1.1 The exemptions provided under the Income Ordinance, 2001 are spread all over the said statute under various provisions and in order to have an in depth understanding of the same it is very important to analyse all the relevant provisions and to arrange them in a single meaningful way. 1.2 In this blog all efforts have been made to arrange the provisions regarding the exemptions under the Income Tax Ordinance in one place for an easy understanding of its valuable readers. 2. OVERVIEW OF EXEMPTIONS PROVIDED UNDER INCOME TAX ORDINANCE, 2001 2.1 The provisions of exemptions provided under the Income Tax Ordinance, 2001 can be divided into following three broad categories which will be discussed in detail later in this blog: Exemptions and Tax Concessions provided under Part VII of Chapter III of the Income Tax Ordinance, 2001; Exemptions under the ambit of Section 159 of the Income Tax Ordinance, 2001; and  Exemptions and Reduction ...
Read more