Withholding Tax Card 2016/2017: sale, purchase of shares

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KARACHI: The Federal Board of Revenue (FBR) has updated advance tax rates on sale and purchase of to be collected by a stock exchange from its members during fiscal year 2016/2017.
233A. Collection of tax by a stock exchange registered in Pakistan.
(1) A stock exchange registered in Pakistan shall collect advance tax,—
(a) at the rates specified in Division IIA of Part IV of First Schedule from its Members on purchase of shares in lieu of tax on the commission earned by such Members; and
(b) at the rates specified in Division IIA of Part IV of First Schedule from its Members on sale of shares in lieu of tax on the commission earned by such Members.
Division IIA of Part IV of First Schedule

S.No. Description Rate
(1) (2) (3)
1. in case of purchase of shares as per clause (a) of sub-section (1) of section 233A. 0.02% of purchase value
2. in case of sale of shares as per clause (b) of sub-section (1) of section 233A. 0.02% of sale value”;

(2) The tax collected under clauses (a) to [(b)] of sub-section (1) shall be adjustable.
233AA. Collection of tax by NCCPL.
NCCPL shall collect advance tax from the members of Stock Exchange registered in Pakistan, margin financiers, trading financiers and lenders,in respect of margin financing in share business or providing of any margin financing, margin trading or securities lending under (Securities Leveraged Markets and Pledging) Rules, 2011 in share business at 10 percent of profit or mark-up or interest earned by the member, margin financier or securities lender.
Provided that the provisions of this section shall not apply to any Mutual Fund specified in sub-clause (2) of clause (57) of Part I of the Second Schedule.

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