1. TRANSITIONAL ADVANCE TAX
PROVISIONS

2. TRANSITIONAL ADVANCE TAX PROVISIONS
Cash withdrawal from a bank.
(1) Every banking company shall deduct tax at the rate
specified in Division VI of Part IV of the First Schedule, if the
payment for cash withdrawal, or the sum total of the payments
for cash withdrawal in a day, exceeds twenty-five thousand
rupees.]
(2) Advance tax under this section shall not be collected in the
case of withdrawals made by,(a) the Federal Government or a Provincial Government;
(b) a foreign diplomat or a diplomatic mission in Pakistan; or
(c) a person who produces a certificate from the Commissioner
that his income during the tax year is exempt.

3. TRANSITIONAL ADVANCE TAX PROVISIONS
Advance tax on transactions in bank.—
(1) Every banking company, non-banking financial institution,
exchange company or any authorized dealer of foreign
exchange shall collect advance tax at the time of sale against
cash of any instrument, including Demand Draft, Pay Order,
CDR, STDR, SDR, RTC, or any other instrument of bearer
nature or on receipt of cash on cancellation of any of these
instruments:
Provided that this sub-section shall not be applicable in case of
inter-bank or intra-bank transfer and also where payment is
made through a crossed cheque for purchase of a financial
instrument as referred to in sub-section (1).
(2) Every banking company, non-banking financial institution,
exchange company or any authorized dealer of foreign
exchange shall collect advance tax at the time of transfer of
any sum against cash through online transfer, telegraphic
transfer, mail transfer or any other mode of electronic transfer.

4. TRANSITIONAL ADVANCE TAX PROVISIONS
Advance tax on transactions in bank.—
(3) The advance tax under this section shall be collected at the
rate specified in Division VIA of Part IV of the First Schedule,
where the sum total of payments for transactions mentioned in
sub-section (1) or sub-section (2) as the case may be, exceed
twenty-five thousand rupees in a day.
(4) Advance tax under this section shall not be collected in the
case of transactions made by,
(a) the Federal Government or a Provincial Government;
(b) a foreign diplomat or a diplomatic mission in Pakistan; or
(c) a person who produces a certificate from the Commissioner
that its income during the tax year is exempt

5. TRANSITIONAL ADVANCE TAX PROVISIONS
Advance tax on private motor vehicles.— Every
motor vehicle registering authority of Excise and
Taxation Department shall collect advance tax at the
time of registration of a new locally manufactured
motor vehicle, at the rates specified in Division VII of
Part IV of the First Schedule:
Provided that the provisions of this section shall not
be applicable in the case of –
(a) the Federal Government;
(b) the Provincial Government;
(c) the Local Government;
(d) a foreign diplomat; or
(e) a diplomatic mission in Pakistan

6. TRANSITIONAL ADVANCE TAX PROVISIONS
Brokerage and commission.
(1) Where any payment on account of brokerage or
commission is made by the Federal Government, a Provincial
Government, a Local Government], a company or an
association of persons constituted by, or under any law
(hereinafter called the “principaL”) to a [ ] person (hereinafter
called the “agent”), the principal shall deduct advance tax at
the rate specified in Division II of Part IV of the First Schedule
from such payment.
(2) If the agent retains Commission or brokerage from any
amount remitted by him to the principal, he shall be deemed to
have been paid the commission or brokerage by the principal
and the principal shall collect advance tax from the agent.
(3) Where any tax is collected from a person under sub-section
(1), the tax so collected shall be the final tax on the income of
such persons

7. TRANSITIONAL ADVANCE TAX PROVISIONS
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;
(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;
(c) from its [Members] in respect of trading of shares by the Members at the
rates specified in Division IIA of Part IV of First Schedule; and
(d) from its 5[Members] in respect of financing of carryover trades in share
business at the rate specified in Division IIA of Part IV of First schedule.
(2) The tax collected under clauses (a) to (c) of sub-section (1) shall be
adjustable.

8. TRANSITIONAL ADVANCE TAX PROVISIONS
Tax on motor vehicles.(1) Any person 10[at the time of] collecting motor vehicle tax
shall also collect advance tax at the rates specified in Part IV
of the First Schedule.
(2) If the motor vehicle tax is collected in instalments, the
advance tax may also be collected in instalments in like
manner.
(2A) In respect of motor cars used for more than ten years in
Pakistan, no advance tax shall be collected after a period of
ten years.]
(3) In respect of a passenger transport vehicle with registered
seating capacity of ten or more persons, advance tax shall not
be collected after a period of ten years from the first day of
July of the year of make of the vehicle.

9. TRANSITIONAL ADVANCE TAX PROVISIONS
Tax on motor vehicles.(4) In respect of a goods transport vehicle with
registered laden weight of less than 8120
kilograms, advance tax shall not be collected
after a period period of ten years from the date
of first registration of vehicle in Pakistan.
(5) Where tax is collected from any person
being the owner of goods transport vehicle, the
tax so collected shall be the final tax on the
income of such person 2[from plying, or hiring
out, of such vehicle.

10. TRANSITIONAL ADVANCE TAX PROVISIONS
CNG Stations.
(1) There shall be collected advance tax at the rate
specified in Division VIB of Part III of the First
Schedule on the amount of gas bill of a Compressed
Natural Gas station.
(2) The person preparing gas consumption bill shall
charge advance tax under sub-section (1) in the
manner gas consumption charges are charged.
(3) The tax collected under this section shall be a final
tax on the income of a CNG station arising from the
consumption of the gas referred to in sub-section (1).
(4) The taxpayers shall not be entitled to claim any
adjustment of withholding tax collected or deducted
under any other head, during the tax year

11. TRANSITIONAL ADVANCE TAX PROVISIONS
Electricity consumption.(1) There shall be collected advance tax at the rates
specified in Part-IV of the First Schedule on the
amount of electricity bill of a commercial or industrial
consumer.
(2) The person preparing electricity consumption bill
shall charge advance tax under sub-section (1) in the
manner electricity consumption charges are charged.
(3) Advance tax under this section shall not be
collected from a person who produces a certificate
from the Commissioner that his income during tax
year is exempt from tax.

12. TRANSITIONAL ADVANCE TAX PROVISIONS
Electricity consumption.(4) Under this section,
(a) in the case of a taxpayer other than a company,
tax collected upto bill amount of thirty thousand
rupees per month shall be treated as minimum tax on
the income of such persons and no refund shall be
allowed;
(b) in the case of a taxpayer other than a company,
tax collected on monthly bill over and above thirty
thousand rupees per month shall be adjustable; and
(c) in the case of a company, tax collected shall be
adjustable against tax liability.

13. TRANSITIONAL ADVANCE TAX PROVISIONS
Telephone users.(1) Advance tax at the rates specified in Part IV of the First Schedule shall
be collected on the amount of –
(a) telephone bill of a subscriber;
(b) prepaid cards for telephones and]
(c) sale of units through any electronic medium or whatever form.
(2) The person preparing the telephone bill shall charge advance tax under
sub-section (1) in the manner telephone charges are charged.
(3) The person issuing or selling prepaid cards for telephones shall collect
advance tax under sub-section (1) from the purchasers at the time of
issuance or sale of cards.
(3A) The person issuing or selling units through any electronic medium or
or whatever form shall collect advance tax under sub-section (1) from the
purchaser at the time of issuance of sale of units.
(4) Advance tax under this section shall not be collected from Government,
a foreign diplomat, a diplomatic mission in Pakistan, or a person who
produces a certificate from the Commissioner that his income during the
tax year is exempt from tax.

14. TRANSITIONAL ADVANCE TAX PROVISIONS
Advance tax at the time of sale by auction. –
(1) Any person making sale by public auction or auction by a tender, of any
property or goods (including property or goods confiscated or attached)
either belonging to or not belonging to the Government, local Government,
any authority, a company, a foreign association declared to be a company
under sub-clause (vi) of clause (b) of sub-section (2) of section 80, or a
foreign contractor or a consultant or a consortium or Collector of Customs
or Commissioner of Inland Revenue or any any other authority, shall collect
advance tax, computed on the basis of sale price of such property and at
the rate specified in Division VIII of Part IV of the First Schedule, from the
person to whom such property or goods are being sold.
(2) The credit for the tax collected under sub-section (1) in that tax year
shall, subject to the provisions of section 147, be given in computing the tax
payable by the person purchasing such property in the relevant tax year or
in the case of a taxpayer to whom section 98B or section 145 applies, the
tax year, in which the “said date” as referred to in that section, falls or
whichever is later.
Explanation.- For the purposes of this section, sale of any property includes
the awarding of any lease to any person, including a lease of the right to
collect tolls, fees or other levies, by whatever name called.

15. TRANSITIONAL ADVANCE TAX PROVISIONS
Advance tax on purchase of air ticket.
(1) There shall be collected advance tax at the rate specified in
Division IX of Part IV of the First Schedule, on the purchase of
gross amount of domestic air ticket.
(2) The person preparing air ticket shall charge advance tax
under sub-section (1) in the manner air ticket charges are
charged.]
(3) The advance tax collected under sub-section (1) shall be
adjustable.]
(4) The advance tax under this section shall not be collected in
the case of—
(a) the Federal Government or a Provincial Government; or
(b) a person who produces a certificate from the
Commissioner Inland Revenue that income of such person
during the tax year is exempt.