SRO 586(I)/91, dated June 30, 1991.

- In exercise of the powers conferred by clause (ii) of the proviso to sub-

section (4) of section 50 of the Income Tax Ordinance, 1979 (XXXI of 1979), hereinafter referred to as the
Ordinance, and in supersession of its Notification No. S.R.O. 659(I)/81 dated the 25th June 1981, the Central Board
of Revenue is pleased to specify the following to be the recipients, or the classes of recipients, to whom the said
sub-section shall not apply, namely:-

i. a Provincial Government;
1
ii. [a local government];
iii. Persons who are residents of the Tribal Area or Azad Kashmir and execute contracts in Tribal Area or as
the case may be, Azad Kashmir only and produce a certificate to this effect from the Political Agent
concerned or the district authority, as the case may be, or in the case of Azad Kashmir, from the Income
Tax Officer concerned.
iv. persons who produce a certificate from the Commissioner of Income Tax to the effect that their income
during the income year is exempt from tax 2[];
v. persons receiving payments from a company 3[or an Association of Person (AOP) having turnover of fifty
million rupees or above] 4[or an individual having turnover of fifty millions rupees or above] exclusively for
the supply of agriculture produce 5[including fresh milk,] 6[live chicken birds and eggs by any
7
[growers/producers of agriculture produce] engaged in poultry farming and by an industrial undertaking
engaged in poultry processing] which has not been subjected to any process other than that which is
ordinarily performed to render such produce fit to be taken to market;
vi. companies receiving payments for the supply of electricity and gas;
vii. companies receiving payments for the supply of crude oil;
viii. Attock Refinery Limited, National Refinery Limited and Pakistan Refinery Limited receiving payments for
the supply of their products;
ix. Pakistan State Oil Company Limited, 8[Shell Pakistan Limited], and Caltex Oil (Pakistan) Limited, receiving
payments for the supply of petroleum products.
x. Hotels and restaurants receiving payments in cash for providing accommodation or food or both as the
case may be;
xi. shipping companies and air carries receiving payments for the supply of passengers tickets and for the
cargo charges of goods transported;
9
[(xii) persons receiving payments-

a) not exceeding rupee twenty-five thousand on account of supply of goods, in a financial year; and

1
Substituted for “a local authority” by Notification No. SRO 1161(I)/2010 dated December 31, 2010.
2
Words etc. “under the Second Schedule to the Income Tax Ordinance 1979” omitted by Notification No.
SRO 626(I)/91 dated July 4, 1991 w.e.f. July 1, 1991. As explained in CBR’s Circular No. 19 of 1991 dated
July 8, 1991. This amendment has been made to enlarge the scope of exemption so as to “apply to all
recipients whose income is exempt from tax under any provision of the Income Tax Ordinance, 1979, or
any other law.”
3
Words etc. inserted by Notification No. SRO 1248(I)/2008 dated December 4, 2008.
4
Words inserted by Notification No. SRO 116(I)/2010 dated December 31, 2010.
5
Commas and words inserted by Notification No. SRO 593(I)/94 dated June 12, 1994.
6
Words etc. inserted by Notification No. SRO 379(I)/2002 dated June 15, 2002.
7
Substituted for “person” by Notification No. SRO 1161(I)/2010 dated December 31, 2010.
8
Substituted for “Pakistan Burmah Shell Limited” by Notification No. SRO 282(I)/94 dated March 31, 1994.
9
Clause (xii) substituted by Notification No. SRO 826(I)/91 dated August 24, 1991.
 b) not exceeding rupee ten thousand on account of services rendered or execution of a contract, in a
financial year:
Provided that where the total payments in a financial year, exceed rupees twenty-five thousand on
account of supply of goods, or rupees ten thousand on account of services rendered or execution of a
contract, the payer shall deduct tax from the payments including the tax on payments made earlier
without deduction of tax during the same financial year;]
10
[(xiii) persons receiving payments for supply of cotton seed 11[;] ]
12
[(xiv) persons, being manufacturers of goods, who produce a certificate from the Commissioner of Income Tax
concerned to the effect that their income during the income year is not likely to be chargeable to tax due
to assessed losses carried forward;

(xv) persons, being owner of one goods transport vehicle, receiving payment once in a financial year from a
payer on account of carriage of goods on behalf of such payer on a single journey undertaken during the
13
said financial year [;]
14
(xvi) persons, other than those whose income is liable to tax under section 80C, who produce a certificate from
the Commissioner of Income Tax to the effect that their income during the income year is not likely to be
chargeable to tax due to assessed losses carried forward; and]
15
[(xvii) persons, other than those whose income is liable to tax under section 80B or 80C, from whom tax has
been deducted under sub-section (4) of section 50 and the aggregate of the tax deducted under the said
sub-section is equal to or exceeds the tax payable under section 53 of the Ordinance in respect of that
income year and a certificate to that effect from the Commissioner of Income Tax is produced by such
persons.]

2. This notification shall have effect from the first day of July, 1991.

10
Clause (xiii) inserted by Notification No. SRO 631(I)/91 dated June 30, 1991, w.e.f. July 1, 1991.
11
Substituted for full stop by Notification No. SRO 826(I)/91 dated August 24, 1991, w.e.f. July 1, 1991.
12
Clauses (xiv) and (xv) inserted by Notification No. SRO 826(I)/91 dated August 24, 1991. w.e.f. July 1, 1991.
13
Substituted for full stop by Notification No. SRO 1100(I)/91 dated October 28, 1991.
14
Clause (xvi) inserted by Notification No. SRO 1100(I)91 dated October 28, 1991.
15
Clause (xvii) substituted by Notification No. SRO 1122(I)/91 dated November 5, 1991. Earlier it was
inserted by Notification No. SRO 1100(I)/91 dated October 28, 1991.