Income Tax Ordinance, 2001 — Section 108B: Transactions under dealership arrangements

108B. Transactions under dealership arrangements.- (1) Where a person supplies products listed in the Third Schedule to the Sales Tax Act, 1990 or any other products as prescribed by the Board, under a dealership arrangement with the dealers who are not registered under Sales Tax Act, 1990 and are not appearing in the active taxpayers’ list under this Ordinance, an amount equal to 1 Sub-section (6) added by the Finance Act, 2024. 2 New sections (108A) & (108B) inserted through Finance Act, 2019 208 Chapter VIII – Anti-Avoidance seventy-five percent of the dealer’s margin shall be added to the income of the person making such supplies.

(2)For the purposes of operation of this section, ten percent of the sale price of the manufacturer shall be treated as dealers margin.]