August 23, 2007	Thursday	Sha’aban 9, 1428

ISLAMABAD, Aug 22: The Federal Board of Revenue (FBR) has notified that income tax deducted at source on supplies of manufacturers of iron and steel products will not be final liability.

The amendments were made through an income tax notification SRO847 issued here on Wednesday. It may be mentioned that under sub-clause 6B companies manufacturing cum supplier of their manufactured products were already taken out of final discharge of tax liability.

Through this notification, individual and AOPs manufacturing steel products and making such suppliers in their case too the tax will not be taken as final liability.

The notification has made the law more complex as it has become unclear for taxpayer that income tax department through sub-clause 6 made tax on supplies final discharge. Through another amendment 6A, it was said tax on manufacturers supply will not be final. Then again another amendment of 6B it again said if manufacturer is individual or AOP, then tax will be final.

Through the notification, amendments were made in Part IV, after clause (46), the following new clauses shall be inserted, namely: “(46A) the provisions of sub-section (6B) of section 153 shall not apply to any payment received by a manufacturer of iron and steel products relating to sale of goods manufactured by him”.

“(46B) the provisions of sub-section (6B) of section 153, in so far as they relate to payments on account of sale of goods from which tax is deductible under section 153, shall not apply in respect of an individual or association of persons being a manufacturer of such goods, for the tax year 2007”.