Minimum tax on payments under section 153

Minimum tax on payments under section 153

Minimum tax on payments under section 153: Prior to the Finance Act, 2019, tax deductible under clauses (a) & (c) of sub-section (1) of section 153 for sale of goods and on the execution of a contract was final tax.

Through, the Finance Act, 2019, tax deductible under clauses (a) & (c) of sub-section (1) of section 153 has been made minimum tax.

However, such tax shall not be minimum tax u/c 153(1)(a) where payments are received on sale or supply of goods by a company being a manufacturer of such goods or by a public company listed on a registered stock exchange in Pakistan.

These explanations have been issued by FBR after the Finance Act 2019 approved / passed from the parliament of Pakistan.