KARACHI: The Federal Board of Revenue (FBR) has made mandatory for the airlines to deposit the collected advance tax within seven days from the date when the tax from person is received.
On Friday, through statutory regulatory order (SRO)698 (I)/2014 issued draft amendments in the Income Tax Rules, 2002, in which FBR directed the airlines that those who are issuing ticket directly to passengers, either manually or electronically will charge advance tax, at specified rates.
It said that the tickets are issued by person or any agency on behalf of the airlines, are already collecting advance tax from the passengers and should make payment of tax to the airlines directly, or through International Air Transport Association (IATA), any other entity authorized in that behalf, the tax so collected by the airlines from such persons shall be paid.
The FBR said that airlines should make adequate arrangements for the collection of tax under the rule from the persons issuing tickets on its behalf or through electronic means because in case of default the tax would be collected from the airlines.
It is mentioned, “Provisions of section 236L shall not be applicable in the case of a foreign diplomat or a diplomatic mission in Pakistan.”
The FBR informed that every airline should submit monthly and annual statement of tax collection to the respective Commissioner Inland Revenue.