SHC stays imposition of Income Tax on turnover of service provider
KARACHI: An appellate bench of High Court of Sindh (SHC) comprising Justice Muhammad Shafi Siddiqui and Justice Mahmood A Khan on Friday restrained Income Tax authorities from levying income tax on turnover of a service provider company.
S.M.S Global Private Limited moved the court through counsel Ms Dil Khurram Shaheen advocate who relying on a judgment by SHC in 2009 said that income tax could be levied over gross fee secured by the service/man power provider company. The said rate was earlier 8 per cent but under the new finance bill has been reduced to 3 per cent. The counsel also draw attention of the court to an order in an identical petition and sought stay against income tax demand.
The bench allowing the request while granting stay connected the matter with earlier petition pending adjudication while fixing the both for a hearing on Aug 02.