Transactions Between Cooperative Societies and Members Section 18(1)(B)
Transactions Between Cooperative Societies and Members Section 18(1)(B): The Finance Bill seeks to insert clarification under Clause b of sub-section 1 of section 18 which specify that income derived by Associations from sale of goods/rendering of services to its members. Now, through this proposed clarification, it is specified that income derived by cooperative societies form sale of immovable property to its members is and has always been chargeable to tax as “Income from Business”.
This provision shall have retrospective effect with respect to charging tax on such sale.
For more information on FBR’s new regulations / circulars/ SROs/ amendments in taxation laws in Pakistan please visit https://www.fbr.gov.pk/