There is misconception of not deducting Income Tax under provision of

clause (a) of sub-section (1) of section 153 of the Income Tax

Ordinance,2001 on the petrol bills of XEN /SDO payable from the annual
vehicle running estimates if petrol/diesel is supplied directly by Petrol
Pumps/Dealers. In this respect, it is clarified here for the guidance and
information of my all respectable colleagues especially those who are
posted in Provincial Public Works Divisions (because they perform the preaudit function of petrol/fuel bills unlike the AAO-W&S who are posted in
District set up in which case this function has been entrusted to District
Accounts Office staff ) that exemption from non deduction of income tax on
supply of fuel/petrol directly by petrol pumps or dealers is only available to
those petroleum agent or distributors who are registered with sales tax
department under Sales Tax Act,1990.THE SAID EXEMPTION IS
CONTAINED IN CLAUSE 43C OF PART IV OF SECOND SCHEDULE OF
INCOME TAX ORDINANCE,2001.Moreover, Sales Tax at the applicable
rate (which is Rs.29.57 and Rs.13.90 per litre on Diesel and Petrol
respectively for the month of April,2016. These rates are changed on
monthly basis as per the directions and policy of Ishaq Dar) should also be
charged and deducted the whole amount of sales tax if the supplier is not
registered with Sales Tax Department.
COMMENTS/CLARIFICATIONS
FROM
MY
RESPECTABLE
COLLEAGUES WILL BE WELCOMED AND GIVE ME COURAGE FOR
SHARING SUCH INFORMATIONS-03224143308 & 03354066762