The Karachi Stock Exchange (Guarantee) Limited’s revision in taxes

[ 0 ] June 27, 2012 | Stock Exchange Announcements

Karachi, June 27, 2012 (PPI-OT): Members are hereby informed that Advance Tax in respect of financing of carry over trades in share business collected u/s 233A (1) (d) has been omitted under the amendments made in the Income Tax Ordinance, 2001 through The Finance Act, 2012 as passed by the Parliament of Islamic Republic of Pakistan on June 14, 2012 which will come into force from July 01, 2012.

Accordingly, the taxes currently collected by the Exchange have been revised as under:

S. No	Description	Existing	Revised
1.	Capital Value Tax (CVT) on purchase of shares of a public	0.01% of the	No change
	company listed on a registered stock exchange in Pakistan	purchase value
	(Section 7of the Finance Act, 1989)
—–	—————————————————————–	—————-	———
2.	Advance Tax on trade value of shares	Section 233 A (1) (c)]	Omitted No change
—–	—————————————————————–	—————-	———
3.	Advance Tax in respect of financing of carry over trades in share	10% of carry over	Omitted
	business	Section 233 A (1) (d)]	charge
—–	—————————————————————–	—————-	———
4.	Advance Tax on purchase value of shares traded in lieu of tax on	0.01% of purchase	No change
	commission	(Section 233 A (1) (a)]	Value
—–	—————————————————————–	—————-	———
5.	Advance Tax on sale value of shares traded in lieu of tax on	0.01% of sale value	No change
	commission	Section 233 A (1) (b)]

Capital Value Tax (CVT) on purchase of shares of a public company listed on a registered stock exchange in Pakistan was inserted in the Finance (Amendment) Ordinance, 2012 promulgated on April 24, 2012 (as already notified through our Notice No. KSE/N-2073 dated April 26, 2012) and which said specified in the Finance Act, 2012.

The advance tax on trade value of shares collected u/s 233 A (1) (c) was omitted in the Finance (Amendment) Ordinance, 2012 promulgated on April 24, 2012 (as already notified through our Notice No. KSE/N-2073 dated April 26, 2012) and which is also specified in the Finance Act, 2012, i.e. there is no tax now under this head.

Matters related to Capital Gains Tax (CGT) and Collection of Advance Tax u/s 233 AA from the members of Stock Exchange in respect of margin financing in share business at the rate specified in Division IIA of Fart IV of First Schedule, as specified in the above mentioned Finance (Amendment) Ordinance, 2012 and the Finance Act, 2012 respectively, are being dealt with separately by the National Clearing Company of Pakistan Limited (NCCPL).

For more information, contact:
Karachi Stock Exchange
Tel: (92-21) 111-001122
Fax: (92-21) 3241 0825, (92-21) 3241 5136
Email: info@kse.com.pk
Web: www.kse.com.pk

Tags: Karachi Stock Exchange