Disallowance of commission Section 21(ca)
A new clause (ca) has been inserted in section 21 which disallows commission paid or payable in respect of supply of products listed in the Third Schedule to the Sales Tax Act, 1990 which is in excess of 0.2% of the gross amount of supplies to a person who is not appearing in the active taxpayers’ list (ATL) under this Ordinance.
However, the limit of 0.2% shall not apply if the commission is paid or payable to a person whose name is appearing in the ATL.
These explanations have been issued by FBR after the Finance Act 2019 approved / passed from the parliament of Pakistan.
