Income Tax Ordinance, 2001 — Section 236: Telephone 1[and internet] users

236. Telephone 1[and internet] users.- (1) Advance tax at the rates specified in 2[Division V] Part IV of the First Schedule shall be collected on the amount of –

(a)telephone bill of a subscriber; 3[ ]

(b)prepaid cards for 4[ ] telephones 5[; 6[ ] ]

(c)sale of units through any electronic medium or whatever form 7[; and] 8[“(d) internet bill of a subscriber; and

(e)prepaid cards for internet.”]

(2)The person preparing the telephone 9[or internet] bill shall charge advance tax under sub-section (1) in the manner telephone10[or internet] charges are charged.

(3)The person issuing or selling prepaid cards for 11[ ] telephones 12[or internet] shall 13[collect] advance tax under sub-section (1) from the purchasers at the time of issuance or sale of cards. 14[(3A) The person issuing or selling units through any electronic medium or whatever form shall collect advance tax under sub-section (1) from the purchaser at the time of issuance of sale of units.]

(3)The tax collected under sub- section (1) shall be deemed to be the tax required to be deducted under sub-section (1) of section 153, on the payment for local purchase of scrap.

(4)Tax collected under sub-section (1) shall be non-adjustable and credit of the same shall not be allowed to any person.] Chapter XII – Transitional Advance Tax Provisions

(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.