REGISTERED No. S. 1033 ty Gagette of Pakistan EXTRAORDINARY PUBLISHED BY AUTHORITY KARACHI, WEDNESDAY, MARCH 6, 1957 GOVERNMENT OF PAKISTAN MINISTRY OF LAW Karachi, the 6th March 1957 Acts of Parliament received the assent of the President ch, 1957 and are hereby published for general informa- THE FINANCE ACT, 1957 Act No. I or 1957 [4th March, 1957] give effect to the financial proposals of the Government for the year beginning on the first sedient to fix the duty on certain maximum rates of postage under the Post Act, 1898 (VI of 1898), to continue subject to n modifications, for a further period of one year nal d of customs impose section 6 of the (XIL-of 1942), and ‘to alter the duty nue the charge and levy certain provisions relat- excess profits tax, business g tax, urban immovable pro- excise to fix rates of income-tax md to continue, subject to modifications, and duties imposed for the purpose of meeting eon the rehabilitation of displaced persons ; 1 enacted as follows: his Act may be called the Finance Act, 1957. shorttitle extends to the whole of Pakistan. ba mae ° dut; Y on salt manufactured in, or imported by Continuance » Pakistan shall, for the year beginning on the of duty on of April, 1957, be at the rate of Rs, 2-8 per ‘# maund. ( 49) Price: Annas 745 0 THE GAZETTE OF PAKISTAN, EXTRA., MARC] THE C TE OF | . cH T “ 4. For, tisijear begnulng 1 BE g on the first d : 1957, the schedule contained in the F t Sch ae ‘aet’shall be inserted in the Post Office ee @) (VI of 1898) as the First Schedule to that Additionst A, The additional duties of customs on St duties of chat eable with a duty of customs’ . Sch to the Tari 1934 Tl d iff 0 der the said Schedule read with any Central Government for the time i up to the thirty-first imposed Section 6 of the Finance Act, 1942, and cor up to the thirty to certain modifications March, 1957, ion 4 of the (I of 1956), shall continue, subject to tions, to be levied and collected, as in the same manner as the duty charge as provided for in the said section 6 frst day of March, 1958 5. The amendments set out ‘Act shall be made in fl and Salt Act, 19 Alteration of duties ‘of to th —r Central 6g, Until the thirty-first diy of March, f in the fourth columa against item 24(2) customs on Schedule to the Tariff Act, 1934 (XXXII of Gigarettes. faye effect as if the A ords and figures “ plus thousand” were added to it aiteration of 7. Until the thirty duty of in the fourth column_ 4! sae, bee Schedule to the Tar ale beet have effect as if the wor f yee,’ PeMEhe total duty” were added to it. Alteration of g, Until the thirty-first day of March, 1958 in the fourth column against item _22(4) oo parist Act, 1034 (XXXII o duty of Gustoms 08 Schedule t? ; ; 5 if the words and figure} brandy, gin, + randy, 6» ave eller” oe t whisky, et gation” were added to it g, Until the thirt additional 1 duty of in the thit d column 88 excise on to the Central st ante Wall have effect & therefor nine pies eight annas and « one rupe! gallon”. Aaditional duty of ‘y Qctso on tern. IL? e item exmeites xcises and S28 Act, « plu as the words “ P added to it.THE GAZETTE OF PAKISTAN, EXTRA., MARCH 6, 1957 1, The following amendments shall be made in the Ame ne Tax Act, 1922 (XI of 19: 2), namely :- srisea (1) In section 2 (a) In sub-clause (a) of clause (1), for the word “Crown”, the word “Government” shall be substituted ; (b) For clause (5. be ), the following clause shall ubstituted, namely :— “(5A) ‘Company’ means a company as din the Companies Act, 1913 (VII of 1913), or a body corporate formed in pursuance of an ‘Act of Parliament, and includes the Government of a Province and any foreign association, whether incorporated or not, which the Central Board of Revenue may,’ by general or special order, declare to be a company for the purposes of this Act” ; (c) In clause (6C), before the wo the word “ Firs’ shall be inserted ; (d) In clause (14A), for the words “the Pro- tan and the Capital of the the word “Pakistan” shall be thedule ”, substituted ; (2) In section 3, he words “the Central Legis- lature the Parliament” shall be substi- tutec (3) Ir Section (3) of section 4— (a) In clause (i), in the second and third provisos, for the words “the Provinces and the Capital of the Federa be substituted ; an” shall (b) In clause (x)— (a) For sub-clause (a), the following sub- clause shall be substituted, namely :— “(a) by the Ruler of a State as his privy purse under Article 202 of the Consti- tution ” ; (b) In sub-clause (c), for the words “ British subject or the subject of an Acceding State or non-Acceding State”, the words “ citizen of Pakistan” shall be substituted ; (c) In sub-clause (d), for the words “any other part of the British Empire”, the words ny part of the Commonwealth” shall be substituted ; (c) In the first proviso to clause (xii), after the word “begun”, the words, figures and comma “on or after the first day of April, 1951” shall be inserted ;THE GAZETTE OF PAKISTAN, EXTRA. MARCH 6, 1957 he year beginning on the first day schedule contained in the First Sched in the Post Office Act “irst Schedule to that Aet ‘uties of customs on certain g a duty of customs under ¢! riff Act, 1934 (XXXII of i Schedule read with any notif Government the time being rst day of M , 1942; and conti to certain modifi up to the March, 1 y 4 of the Finan (I of 1 1 continue, subject to the said tions, to be levied < , as an addition t in the same manner as the chargeable z as. prc for in the said section 6, up to first day of March, 1958 Additional 4. The ditional di ‘ chargeable with customs. Alteration 5, The amendments set out in the Seco! ex futes of to this Act shall be made in the First Sch Central Excise and Salt Act, 1944 (I of 1944) Alteration 6. Until the thirty-first day of March, 195 ofguyof in the fourth column against item 24(2) of customs on cigarettes, Schedule to the Tariff Act, 1934 (XXXII of 1034) smni’* have effect agit the words’ and figures “plus Re. H thousand” were added to it. Alteration of 7. Until the thirty-first day of March, 1958, the « duty of in the fourth column against item 22(1) and onale, beer, First Schedule to the Tariff Act, 1934 (XXXII of 1 Porter, etc.’ have effect as if the words and figures “plu of the total duty” were added to it. Alteration of 8. Until the thirty-first day of March, 1958, th eer oq in the fourth column against item 22(4) of th ean gn Schedule to the Tariff Act, 1934 (XXXII of 19%) whisky, etc, have effect as if the words’ and figure “plus R gallon” were added to it. Additional 9. Until the thirty-first day of March, 1958, hs euyot, in the third/column against item 4 of the First S motor” to the Central Excises and Salt Act, 1944 (I spitit shall have effect as if the following entry were subs therefor “one rupee, eight annas and_ nine pies per 1 gallon” Additional 10. Until the thirty-first day of March, 1 uty of Mh : : excisoon °Ntry of duty set forth in the third column ‘ cigarettes. Stem I1(2) of item 9 of the First Schedule to the Excises and Salt Act, 1944 (I of 1944), shall hav as if the words “plus one-fifth of the total duty added togeme \ Pave one-fifth oTHE GAZETTE OF PAKISTAN, EXTRA., MARCH 6, 1957 45\ 11, The following amendments shall be made in the Amendment Income Tax Act, 1922 (XI of 1922), namely :— E4 on (1) In section 2— (a) In sub-clause (a) of clause (1), for the wo “Crown”, the word “Government” be substituted ; d lL (b) For clause (5A), the foll g clause shall be substituted, mely :— “(SA) ‘Company’ means a company as defined in the Companies Act, 1913 (VII of 1913), or a body corporate formed in pursuance of an ‘Act of Parliament, and includes the Government of a Province and any foreign association, whether incorporated or not, which the Central Board of Revenue may, by general or special order, declare to be a company for the purposes of this Act” ; (c) In clause (6C), before the word “ Schedule ”, the word “ Fir shall be inserted ; (d) In clause (14A), for the words “the Pro- vinces of Pakistan and the Capital of the Federation”, the word “Pakistan” shall be stituted ; (2) In section 3, for the words “the Central Legis- ¥ lature”, the word “Parliament” shall be substi- tuted ; (3) In sub-section (3) of section 4— (a) In clause (i), in the second and third provisos, for the words “the Provinces and the Capital of the Federation”, the word “Pakistan” shall be substituted ; a (b) In clause (x)— (a) For sub-clause (a), the following sub- clause shall be substituted, namely :— “(a) by the Ruler of a State as his privy purse under Article 202 of the Consti- tution” ; (0) In sub-clause (c), for the words “British subject or the subject of an Acceding State or a non-Acceding State”, the words “citizen of Pakistan” shall be substituted ; (c) In sub-clause (d), for the words “any other part of the British Empire”, the words “any part of the Commonwealth” shall be substituted ; (c) In the first proviso to clause (xii), after the word “begun”, the words, figures and comma “on or after the first day of April, 1951” shall be inserted ;452 _THE Ene GAZETTE OF PAKISTAN, ETERS. “MARCH ¢ in (@ To fethuss (xiii), the following Provisos be added, nam “ Provided ti at for the purposes of aking the profits of whichm { be computed in the manner down in’ the Second Schedule t ed further that this clause in the case of an undertaking eng in the exploration of oil and after commencement of ¢ cial production or the expiration period of five years from the issue of the exploration licence ever is earlier ; and (ii) in the case of other underta the expiration of a period of m the date of the s commencement of the und ub-section (3 of section 5A, fo: and comma “Auditor’s Certifica the words, figures and comm: Certificates Rules, 1950” shall be sub (5) In section 7— (a) In sub-section (1) and the seenol thereto, for the word “Crown “Government” shall be substitt (b) Tn sub-section (2), for the w subject or any servant of His Majesty part of Pakistan by or on behalf of the C the words and commas “citizen of Pak any servant of Government, in any Pakistan, by or on behalf of Gover be substituted ; 7 (6) In the Explanation to clause (iv) of sub- of section 9, for the words “ provincial pal tax leviable in respect of the proper words “tax leviable in respect of propert come from property by a local a Provincial Government or the Central ment” shall be substituted ; (7) Tn section 10— (a) In sub-section (2)— () In clause (vi)— (a) In sub-clauses (a) and (, figures “1957”, the fig shall be substituted ; (b) In clause (b), of the proviy word “ where ” See or, if the assessee is a resis”HE GAZETTE OF PAKISTAN, EXTRA., MARCH 6, 1957 firm, in the assessment of its partners,” shall be substituted ; (b) In sub-section (4), after clause (b), the follow- ing clause shall be inserted, namely :— “(bb) any allowance in respect of any pay- ment by way of brokerage or commission made to a person not resident in the tax- able territories unless tax has been deducted therefrom under section 18; ort; (8) To sub-section (1) of section 15AA, the following proviso shall be added, namely :— “Provided that no exemption under this section shall be allowed on so much of the amount invested as aforesaid as does not exceed the sale-proceeds, if any, or the original cost to the assessee, whichever is the greater, of Govern- ment securities and Post Office savings certifi- cates disposed of by him in the previous year by sale, transfer or in any other manner”; In sub-section (6) of section 15C, for the figures “1957”, the figures “1959” shall be substituted ; (10) In sub-section (1) of section 18A, after the words “in respect of which he has been assessed”, the words, figures, letter and commas “under section or, where no assessment under section 23 has been made, under section 23B, as the case may be” shall be inserted ; (9) (11) In section 21— (a) In clause (a), after the word “ Salaries”, the words and comma “or any perquisite, benefit or amenity” shall be inserted ; (b) In clause (b) for the words “ amount of the income”, the word “ amounts” shall be substi- tuted ; and The following proviso shall be added at the end, namely :— “Provided that the Income-tax Offic his discretion extend the da ivery of the return”; (c. 1 may in e for the (12) In section 26A— (a) In sub-section (1), for the words “constituted under”, the words “constituted by” shall be substituted and shall be deemed to have been Substituted on and from the first day of April, 1 ; and (b) In sub-section (4), a the words and comm: in the instrument, or fter the word “existence”, “constituted as shown nstruments, of partner- ship executed in’ writing and in force in the relevant previous year” shall be inserted and chall ‘be deemed to have been inserted on and from the first day of April, 1955 ;THE GAZETTE OF PAKISTAN, (13) In section 2g (16) a7) (18) EXTRA,, MARCH 6, 1957 (a) After sub. i n (1A), the following Section shall be inserted, namely :— “(1B) If the Income-tax Officer is sat that any person has without reas: to deliver or cause return under section a8 without reasonable cause fail within the time, or extended t allowed under that section, h r in writing direct that person shall pay by way of penalty a not exceeding five hundred rup Provided that the Income-tax Offi from time to time in the ¢ continuing default enhance amount so directed to be paid by of penalty so however that th ate of the sums directe paid under th’ exceed five hundred rupees ;” (b) In sub-section (3), after the word, figure and letter “sub-section (1A)”, a co and the word, brackets, figure and let “sub-section (1B)” shall be inserted ; (c) In sub-section (4), after the word “ Act”, words, figure and letter “other than an under section 524” shall be inserted ; delivered h In sub-section (2B) of section 31, for ¥ figures and brackets “sub-section (4)”, the wor figures and brackets “sub-section (3) or sul section (4)” shall be substituted ; In section 34— (a) In sub-section (1), after the word “asses the words “or another person on his shall be inserted ; (b) In the second proviso to s the word and figures “ section : nd comma 3 ibstituted ; (c) Sub-section (3) shall be omitted. In section 38A, for the words “Incom or any officer subordinate to him if so au' by him”, the words and commas “Commis the Inspecting Commissioner, come-tax Officer or an officer subordinate if so authorised” shall be substituted ; Sub-section (6) of section 46 shall be omitted; In section 49B, for the words “such pe: h be deemed”, the words and commas “such p Sons shall, if the dividend is included in his income, be deemed” and for the words income of a company”, the words “total i of the company” shall ‘be substituted ;THE GAZETTE OF PAKISTAN, EXTRA., MARCH 6, 1957 (19) For section 49E, the following shall be substituted, namely :— “Power to set off amount of refunds against tax remaining payable—Where under the prov: sions of this Act, the Excess Profits Tax Act, 1940 (XV of 1940), the Finance Act, 1942 (XII of 1942), the Excess Profits Tax Ordi- nance, 1943 (XVI of 1943), the Busine: Profits Tax Act, 1947 (XXI of 1947), the Sales Tax Act, 1951 (III of 1951), a refund or re- payment is found to be due to any person, the TIncome-tax Officer, the Appellate Assistant Commissioner or the Commissioner, as the case may be, may in lieu of the payment of the refund or the repayment, set off the amount to be refunded or repaid, or any part of that amount against the tax, if any, remaining payable by the person to whom the refund or repayment is due”; (20) The provisos to section 50 shall be omitted ; (21) After section 52, the following new section shall (22) In section be inserted, namely :— “52A. Aiding or abetting an offence.—If any per- son knowingly and wilfully aids, abets, assists, incites or induces another person to make or deliver a false or fraudulent return, account, statement or declaration of or concerning any income, profits or gains chargeable, or any circumstance bearing upon the amount of tax payable or to’ be refunded under this Act, or himself knowingly and wilfully makes or delivers such a false or fraudulent return, account, statement or declaration on behalf of another person, he shall be punishable with imprisonment which may extend to three years or with fine which may extend to one thousand rupees or with both”; ter the word and figures “ section 52”, the words, figures and letter “or section 52A” shall be inserted ; In sub-section (3) of section 54— (a) For clause (e), the following clause shall be substituted, namely :— “(e) of any particulars to Auditor General of Pal of enabling him functions under the Constitution ; or” (b) In clause (f), for the words “ Auditor Gene al of Pakistan the words “Comptroller and Auditor General of Pakistan” shall be substi- tuted ; In clause (g), for the words, figures, and comma “ Government of India Act, 1935”, the word “Constitution” shall be substituted ; and (¢)456 THE GAZETTE OF PAKISTAN, EXTRA, MARCH 6, 1957 < SSS (d) In clause (I), for the words “or any Act of the Centra] Legislature”, the words, letters, brackets and commas “the Lani Customs Act, 1924 (XIX of 1924), ot any Central Act” shall be substituted ; (24) For the second proviso to section 55, the following Proviso shall be substituted and shall be deemed to have been substituted on and from the first day of April, 1955, namely :— “Provided further that where the profits ani gains of an unregistered firm or other associa: tion of persons (not being either a compay or a registered firm) have been assessed {) Super-tax, super-tax shall not be payable by @ partner of the firm or a member of the association, as the case may be, in respect of the amount of such profits and gains which is proportionate to his share”; (25) In sub-section (2) of section 58, for the words, figures, letters and brackets “ (3B), (3C), (3D) and (3E)”, the words, figures, letters, bracket and comma “(3A), (3B) and (3C)” shall be substituted ; (26) In clause (iii) of sub-section (2) of section 61, for the words, figures and comma “ Auditor’s Cettii- cate Rules, 1932”, the words, figures and comm “ Auditors’ Certificates Rules, 1950” shall be substituted ; In the proviso to sub-section (7) of section 66, ft the words “His Majesty in Council”, the word “the Supreme Court” shall be substituted ; In section 66A— (a) For the words “Privy Council” and the Words “His Majesty in Council”, the words “the Supreme Court” shall be substituted; (b) The proviso to sub-section (1) shall be omitted ; and 4 (c) Sub-section (5) shall be omitted ; s In section 67B, for the words “the Central Legis: lature” and “Legislature”, the words “Pariit- ment” and “National Assembly” shall respec tively be substituted ; In the Second Schedule— (a) In rule 1, after the words “carries on”, the words “or is deemed under an agreement with Government to be carrying on” shall be inserted ; and (b) In rule 2— (i) In clause (i), for the words and comm! “but gives up the search, exploration ¢ enquiry upon which the expenditure jmcurred before having carried on aly business which consists of or includes théTHE. GAZETTE OF PAKISTAN, EXTRA., MARCH 6, 1957 457 working of the deposit in question”, the words and comma “but the search, ex- ploration or enquiry upon which the expenditure is incurréd is given up before the commencement of commercial pro- duction” shall be substituted ; and Gi) After the first. proviso to clause (iii), the following further proviso shall be added, namely ;— “Provided further that where any depre- ciation allowance has been allowed before the commencement of com- mercial production, the original cost as aforesaid shall be reduced by the amount of such allowance.” 2. The following amendments shall be made in the Amendment winess Profits Tax Act, 1947 (XXI of 1947), namely :— of ActX (1) For sub-section (2) of section 1, the following sub-section shall be substituted, namely :— “(2) It extends to the whole of Pakistan”; (2) In section 2— (a) In clause (4), for the figures “1956”, the figures “1957 shall be substituted ; and (b) In clause (18), for the words “who is requir- ed by the terms of the contract of partnership to devote”, the words “who devotes” shall be substituted ; (3) In section 4 after the third proviso, the following proviso shall be added, namely :— “Provided further that notwithstanding anything to the contrary contained in sub-section (8) of section 10 of the Income Tax Act, 1922 (XI of 1922), no tax under this Act shall, subject to the terms of the agreement entered into with Government, be payable by an under- taking engaged in the exploration of oil or oil gas in Pakistan” ; (4) In section 5— (a) In the second proviso, for the word “India”, the word “Pakistan” shall be substituted ; (b) For the Explanation, the following Explana- tion shall be substituted, namely :. “ Explanation—As respects any period before the 15th day of August, 1947, the reference to ‘Pakistan’ in the second proviso to this section shall be construed as a refer- ence to the territories then comprised in India” ;THE GAZETTE OF PAKISTAN, EXTRA, MARCH 6, 1897 (5) Section 14 shall be omitted; (6) In sub-section (4) of section 16; for the swords ani figures “section 25”, the words, figures, bracket: and commas “section 29 of the Income Tax Ac, 1922 (XI of 1922), as applied to the business profit te under section 19 of this Act” shall be subst: ‘uted ; (1) For section 19, the following section shall by substituted, namely :— of the provisions of Act Xo 4 “19, Application isda — (1) The provisions of sections 4A, 4B, 10, 18, 24B, 29, 34, 36 to 44C (inclusive), 45 to (inclusive), 495, 49F, 50, 54 61 to 6 (inclusive) and 65 +6 6TA. (inclusive) of the Income-tax Act, 1922 (RI of 192), shall apply with such modifications, if ay, ag may be prescribed, as if the said pr- visions were provisions 0 this Act ad referred to business: profits tax ‘instead of to income-tax, and every officer exerts ing powers under the ‘said provisions ® tax may exercise this Act in regan Provided that references in the said pre visions to the assessee shall be co trued as references to a ore this Act applies. - whose business Any reference in this Act to the Income tax Act, 1922 (XI of 19 shall, in Te tion to. the profits ‘any chargeable accounting perio affairs and all the sary to determine the charge fo bi rofits tax, mean the said Act as in forte. Th the relevant period: Provided that whatever be the relevast period, references to section 46 of said Act shall ‘be deemed to include reference to sub-sections (8), (9%) aot (10) of that section’ ‘Act, 1942 (XII of 198) Amendment 43. Section 10 of the Financ ee et shall be omitted. ” 6 t 14. Section 2 of the E: ene gers. ct 8 th! est OnaioamTHE GAZETTE OF PAKISTAN, EXTRA, MARCH 6, 1957 15. The following amendments shall be made in the ales Tax Act, 1951 (III of 1951), namely (1) For sub-section (2) of section 1, the following sub- section shall be substituted, namels “(2) It extends to the whole of Pal (2) In section 2, for clause (16), the follow ing clause shall be substituted and shall be deemed to 2 been substituted on and from the sixteenth March, 1956, namely tan” ; “(16) ‘sale price’ means— (i) as respects goods chargeable of excise under Salt Act, 19 th mined under section 4 of the the said duty, and, where ti of the said’ section 4 do not the value which would have been determined if the said section 4 had applied plus the said duty ; and (ii) in other cases, the price before any amount able in respect of tax is added and includes any duty of whether or not paid b; any charges for adverti: any other charges of a simil: tracted for at the time charged separately or no’ (3) In section 3— (a) For the words “ the Provinces of Pakistan or the Capital of the Federation” and the words “the Provinces of Pakistan and the Capital of the Federation”, the word “Pakistan” shall be substituted ; he words, and commas “or, where the angeable with a dui of excise It goods unde: es and Salt Act, 1944 (I of 1944), determined for the le the said duty hall s e deemed to have been omitted on and from the 16th day of March, 1956 ; (4) In sub-section (1) of section 7, after the words “goods or class of goods”, the words “or any person or class of persons” shall be inserted ; (5) In sub-section (2) of section 16, after the words “the date of that order”, the brackets, words and commas “(or within such further period as the Commissioner may consider fit to allow on being satisfied that the assessee was prevented by suffi- cient cause from making the application within that period)” shall be inserted ; 459 Amendment of Act, of460 THE GAZETTE oF PAKISTAN, EXTRA, MARCH 6, 19% oo at See ——S Eee (6) In Section 17_ (@) In the proviso to sub-section (7), for Words “Federal Court ”, the words “ Supre Court” shall be substituted, (b) Sub-section (9) shall be omitted ; (7) After section 27, the following section shall inserted, namely ;_ “TA. Power to Set off amount of refunds agai c 9 payable.—Where under | Provisions of thig Act, the Income Tax A 1922 (XT of 1922), the Excess Profits Tax A 1940 (XV of 1940), the Finance Act, 1942 (x of 1942), the Excess Profits Tax Ordinan 1943 (XVI of 1943) and ae Business Prof ax Act, 1947 (XXT of 1947), a refund tE® May be, may, in lien of the payment « the refund or the Tepayment, set off th amount to be refunded pr repaid, or any pat of that amount against the tax, if any, remain ing payable by the person to whorr the refun or repayment is due ;” (8) In sub-section (3) of section 38— (a) for clause (e), the following clause shall be substituted, namely ;— ie “(e) of any such articulars to the Comp. troller and Auditor General of Pakistan for the purpose of enabling him to dis charge his functions under the Constitu- tion ; or”; (b) Tn clause (f), for the words “ Auditor aoe of Pakistan”, the words “Comptroller an Auditor General of Pakistan” shall be substi- tuted ; C (c) In clause (g), for the words, figures and comma “ ‘Overnment of India Act, 1935”, the ‘Word “Constitution ” shall be substituted. figure “5”, the figure “10” shall be substitut, > Z (2) In the first roviso, after the word “Provided”, the word « farther seal be inserted and before that Proviso, the following new Proviso shal] be inserted, namely :_ “Provided that in the case of buildings and lands annual letting value of which exceeds Rs. 2,000 but does hot exceed Rs. 20,000, such tax shall be levied and paid at the rate of 5 Per cent of such annual letting value”,ub-sections (3), Income-tax- (4) and (5), for the year beginning on the first day of April, 8d super (a) income-tax shall be charged at the rates specified in Part I of the Third Schedul (b) the rates of super-tax shall, for the purp section 55 of the Income-tax Act, 1922 (XI of 19: be those specified in Part II of the Third Schedule. (2) In making any assessment for the year er the thirty-first day of March, 1958, there shall be from the total income of an assessee in accordance v 42\ provisions of section 15A of the Income-tax Act, of 1922), an amount equal to one-fifth of the earned inco’ if any, included in his total income, but not exceeding in any case four thousand rupees. (3) In making any assessment for the year ending on the 31st day of March, 1958— (a) where the total income of an as: a company, includes any income ¢ the head “Salaries” as reduced by for ned income appropriate there come chargeable under the he nterest on securities”, or any income from divider respect of which he is deemed under section of the Income-tax Act, 1922 (XI of 1922), to have paid income-tax imposed in the taxable territories the income-tax payable by the assessee on that part of his total income which consists of such inclusions shall be an amount bearing to the total amount of income-tax payable according to the rates applicable under the operation of the Fi Act, 1956 (I of 1956), on his total income th proportion as the amount of such inclusions b: to his total income ; and (b) where the total income of an assessee, not being , a company, includes any income chargeable under the head “Salaries” on which super: been or might have been deducted under the provisions of sub-section (2) of section 18 of the Income-tax Act, 1922 (XI of 1922), the super-tax payable by the assessee on that ‘portion of his total income which consists of such inclusion shall be an amount bearing to the total amount of super-tax payable according to the rates applicable under the opera- tion of the Finance Act, 1956 (I of 1956) on his total income the same proportion as the amount of such inclusion bears to his total income. (4) In making any assessment for the year ending on the thirty-first day of March, 1958,— (a) where the total income of a company includes any profits and gains from life insurance business, the super-tax payable by the company shall be reducedTHE GAZETTE OF PAKISTAN, EXTRA, MARCH 6, 1957 (6) In section 17— (a) In the proviso to sub-section (7), for the words “Federal Court”, the words “Supreme Court” shall be substituted. (b) Sub-section (9) shall be omitted; (7) After section 27, the following section shall be inserted, namely :— “97A. Power to set off amount oj refunds against tax remaining payable.—Where under provisions of this Act, the Income Tex Act, 1922 (XI of 1922), the Excess Profits Tax Act, 1940 (XV of 1940), the Finance Act, 1942 (XI _- of 1942), the Excess Profits Tax Ordinance, 1943 (XVI of 1943) and the Business Profits Tax Act, 1947 (XXI of 1947), a refund or repayment is found to tbe due to any person, the Sales Tax Officer, the Appellate Assistant Commissioner or the Commissioner, as the case may be, may, in lieu of the payment of the refund or the repayment, set off the fimount to be refunded or repaid, or any pat of that amount against the tax, if any, - ing payable by the person to ‘whom the refund or repayment is due ;” (8) In sub-section (3) of section 38— (a) for clause (e), the following clause shall be substituted, namely :— “(e) of any such particulars to the Comp- troller and Auditor General of Pakistan for the purpose of enabling him to dis- charge his functions under the Constitu- tion; or” 5 (b) In clause (f), for the words Auditor General of Pakistan”, the words “Comy troller and Auditor General of Pakistan” s} be substi- tuted ; P (c) In clause (g), for the, words, figures, and comma “Government of India Act, 1935”, the Sword “Constitution” shall be substituted. endment 16. In section 3 of the Sind Urban Immovable Pro- of Sind fet perty Tax Act, 1948 (Sind Act TX of 1948)— : (1) For the figure “5”, the figure #10” shall be substituted ; (2) In the first proviso, after the word “Provided”, the word “further” shall be inserted and before that proviso, the following new proviso shall be inserted, namely :— “Provided that in the case of buildings and lands the annual letting value of which exceeds Rs. 2,000 but does not exceed Rs. 20,000, such tax shall be levied and paid at the rate of 5 per cent of /such annual letting value”. —THE GAZETTE OF PAKISTAN, EXTRA., MARCH 6, 1957 17. (1) Subject to the provisions of sub-sections (3), (4) and (5), for the year beginning on the first day of April, (a) income-tax shall be charged at the rates specified in Part I of the Third Schedul (b) the rates of super-tax shall, for the purposes of section 55 of the Income-tax Act, 1922 (XI of 1922), be those specified in Part II of the Third Schedule. year ending on e deducted e with the (2) In making any asse the thirty-first day of Marc! from the total income of an assessee in a provisions of section 15A of the Income. ct, 1922 (XI of 1922), an amount equal to one-fifth of the earned income, if any, included in his total income, but not exceeding in any case four thousand rupees (3) In making any assessment for the year ending on the 3ist day of March, 1958— (a) where the total income of an as: t being a company, includes any income le under the head “Salaries” as reduced by deduction for earned income appropriate thereto, or any in- come chargeable under the head “ Interest on securities”, or any income from dividends in respect of which he is deemed under section 49B of the Income-tax Act, 1922 (XI of 1922), to have paid income-tax imposed in the taxable territories the income-tax payable by the assessee part of his total income which consist inclusions shall be an amount bearing to the total amount of income-tax payable according to the rates applicable under the operation of the Finance Act, 1956 (I of 1956), on his total income the same proportion as the amount of such inclusions bears to his total income ; and (b) where the total income of an assessee, not being a company, includes any income chargeable under the head “Salaries” on which super-tax has been or might have been deducted under the provisions of sub-section (2) of section 18 of the Income-tax Act, 1922 (XI of 1922), the super-tax payable by the assessee on that ‘portion of his total income which consists of such inclusion shall be an amount bearing to the total amount of super-tax payable according to the rates applicable under the opera- tion of the Finance Act, 1956 (I of 1956) on his total income the same proportion as the amount of such inclusion bears to his total income. (4) In making any assessment for the year ending on the thirty-first day of March, 1958,— (a) where the total income of a company includes any profits and gains from life insurance business, the super-tax payable by the company shall be reduced462 THE GAZETTE OF PAKISTAN, EXTRA., MARCH 6, 1957 : —— by an amount computed at the rate of two annas in the rupee on that part of its total income which consists of such inclusion; and (b) where the total income of an assessee, not being a company, includes any profits and gains from life insurance business, the income-tax and super tax payable by the assessee on that part of his total income which consists of such inclusion shall be an amount bearing to the total amount of such taxes payable on his total income according to the rates applicable under the operation of the Finance Act, 1942 (XII of 1942), the same proportion as the amount of such inclusion bears to his total in- come so however that the aggregate of the taxes so computed in respect of such inclusion shall not in any case exceed the amount of tax payable on such inclusion at the rate of five annas in the rupee. (5)_In cases to which section 17 of the Income-tax Act, 1922 (XI of 1922), applies, the tax chargeable shall be determined as provided in that section, but with reference, to the rates imposed by sub-section (1) and in accordance, where applicable, with the provisions of sub-sections (2), (3) and (4) of this section. (6) For the purposes of making any deduction of income-tax in the year beginning on the first day of April, 1957, under sub-section (2) or sub-section (2B) of section 18 of the Income-tax Act, 1922 (XI of 1922), from any earned income chargeable under the head “Salaries”, the esti- mated total income of the assessee under this head shall, in computing the income-tax to be deducted, be reduced an amount equal to one-fifth of such earned income, but not exceeding in any case four thousand rupees. (2) For the purposes of this section and of the rates of tax imposed thereby, the expression “total income means total income as determined for the purposes of income-tax or super-tax, as the case may be, in accordance with the provisions of the Income-tax Act, 1922 (XI of 1922), and the expression “earned income” has the mean- Jng assigned to it in clause (GAA) of section 2 of thet ct. Continuation 18. (1) The Finance (Supplementary) Act, 1950 (LXIV Stisso.*Y of 1950), (imposing certain new taxes and duties for the purpose of meeting expenditure on the rehabilitation of displaced persons) shall, with the omissions and modifca- tions set out in the Fourth Schedule to this Act, continue in operation after the thirty-first day of March, 1957, as #f the provisions of the said Act with the aforesaid omissions oe modifications were enacted in and formed part of this made under the Finance (Supplementary) of 1950), shall, with the necessary mo to be rules made under the provisions 4S continued and made part of this Act and,THE GAZETTE OF PAKISTAN, EXTRA., MARCH 6, 1957 46 subject to any omissions, additions and modifications which the Central Government may make in them, shall have effect accordingly. (3) Nothing in this section shall affect the application of the Finance (Supplementary) Act, 1950 (LXIV of 1950), a respect of the taxes and duties imposed thereby, in lation to any period before the first day of April, 1957. THE FIRST SCHEDULE (Schedule to be inserted in the Post Office Act, 1898) (See section 3) THE FIRST SCHEDULE INLAND POSTAGE RATES (See section 7) Lerters fora weight not exceeding one tola a hal Fwrevery tola or fraction thereof exceeding one tola One anna Post-Canps Sagle : ‘ . ve Nine pies, ply s : i One and a half annas. Parrenn AND SAMPLE PACKETS irst five tolas of fraction thereof... , ‘One anna, ey additional two and ahalf tolas or fraction thereof in excess Six pies e tolas, Book Packets Rirthe first five tolas or fraction thereof... se One anna Ine every additional two and a half tolas or fraction thereof in excess of _ Thee pies five tolas RecisTerey NEWSPAPERS WSingle copies— nt not exceeding ten tolas % Quarter of an anna, aweight exceeding ten tolas but not exceeding twenty tolas Half an anna Ticevery additional twenty tolas or fraction thereof ., Bs . Half an anna, ckets of registered newspapers— ht not exceeding ten tolas , Half an anna. Fer eyery additional five tolas or fraction thereof in excess of ten tolas... Quarter of an anna: PARCELS Teraweight not exceeding forty tolas ms .+ Eight annas. Facevery forty tolas or fraction thereof, exceeding forty tola Eight annas.464 THE GAZETTE OF PAKISTAN, EXTRA., MARCH 6, 1957 THE SECOND SCHEDULE (See section 5) Amendments to be made in the First Schedule to the Central Exess and Salt Act, 1944 1. In item 4 for the existing entry in the third column “one eight annas and six pies per Imperial gallon” shall be substituted 2. In sub-item II(2) of item 9— (i) for the existing entries against item (viii), the following dull be substituted :— » Tem Description of goods Rate of day ‘No. “(vili) exceeds Rs. 6-8 a thousand but docs not exceed. Rs, 10 a One Tupee and si thousand, annas. (ii) The following sub-item shall be added :— Item Description of goods Rate of dity No. “ (ix) does not exceed Rs. 6-8 a thousand i aa Four annas.” 3. The existing item 10 shall be substituted by the following :— isas Description of goods Rate of dety lo. “10 Ayre means. Pneumatictyre in the ma ture of which tubberis used and includes the inner tube and the outer cover of such atyre— (@) outer cover of cycle tyre e se mi Re ere annas pe re. (©) inner tube of cycle tyre a bi a vs» Four annas pf tube. 4. In item 15 for the existing entries in columns 2 and 3 the foll shall be substituted, namely :— Description of goods Rate of tty “Cloth produced in afactory ordinarily using power in the course of production of cloth: _ @) * cotton cloth " means cloth of any description manufactured ‘cither wholly or partly from cotton and containing not less than 10 per cent of cotton by weight— (@ * teoarse cotton cloth * that is to say all cloth in which he Six pies p= 5¢§ Average count of yarn is less than 175. Gi) * medium cotton cloth * that is to say all cloth in which the Two annas pet Average count of yarn is 17s or more but is less than 35s, Gil) * fine cloth’ that is to say all cloth in which the average Three annas pes count of yarn is 35s or more. Explanation 1—' Count? Means count of grey yarn. Explanation 2—For ink fe count of the 1 suing oh 2 GFor the Purpose of determining the averag (6) yarn used in the borders or selvedges shall be ignored. () for mm fold yarn, the count of the basic single yarn Sh onyand, the number’ of ends per inch in the eed of th ber ofp inch, as he case may be, shall be multiplied byTHE GAZETTE OF PAKISTAN, EXTRA., MARCH 6, 1957 465 (c) the average count shall be obtained by applying the following formula, namely :— (count of warp X number of ends per inch in the reed) plus (count of weft < number of picks per inch) (Number of ends per inch in the reed) plus ( inch) the result being rounded off, wherever nece by tre fraction which is one-half or more as one, and disregarding any which is less than one-half. Description of goods Rate of 2) * Rayon or artificial silkcloth’ includes all varieties of cloth One an x pies manufactured either w holly or partly from rayon or artifi cial silk and containing not less than 10 per cent of or artificial silk by weight but does not include any such cloth if t contains more than 10 percent of cotton by weight 5. After item 17 in the Schedule, the following new items Description of goods Rate of dut Jute manufactures made in a factory ordinarily using power in Ru e he course of production of such manufactures t High speed diesel oil and vaporising oil, that is to T s mineral oil (excluding mineral colza oil and turpentine per imperial gallo; substitute) which has its flashing point at or above sevent six degrees of Fahrenheit’s thermometer, and satisfies either of the following requirements, namely () the oil has a flame height to ten millimeters or more but less than eighteen millimeters ; or Gi) theoilhas a flame height of less than ten millimeters, but ha a viscosity of less than fifty seconds by Redwood I Viscom. fer at one hundred. degrees of Fahrenheit’s thermometer and contains less than one quarter of one per cent by w of any bituminous substance. Diesel oil, not otherwise specified, that is to say, any mineral Ru! n per oil which. (i) has its flashing point at or above one hundred and f degrees of Fahrenheit’s thermometer, ii) has a flame height of less than ten millimeters, (ii) contains one quarter of one per cent or more by weight of ar bituminous substance, and (iv) possesses a viscosity of less thin one hundred seconds by R: wood I Viscometer at one hundred degrees of Fahrenheit thermometer. Furnace oil, that is to say, any mineral oil which R nt, annas ts flashing point at or above one hundred and fif s of Fahrenheit’s thermom Gi) has a flame height of less than ten millimeter: ains one quarter of one per cent or more by weight any bituminous substance, and (iv) possesses a viscosity of one hundred seconds or more Redwood I Viscometer at one hundred of Fah heit’s thermometer. , tion I—‘ Mineral oil’ means an oil consisting « paitbon or a liquid mixture of hydrocarbons (except for assc = y {stived from petroleum, coal, shale, peat or any other bitumi nee “cludes any similar oil produced by synthesis or other466 THE GAZETTE OF PAKISTAN, EXTRA., MARCH 6, 1957 Explanation I.—'Flame height’ shall be determined i known as the smoke point 1: : © Ee , Central Government. PB lamp in the manner preseribed in this the Explanation III.— ‘Flashing point’ shall be determi ordance the tests specified inthis behalf in the rules mace under ie anu fe tem a Description of goods 20 Asphalt Rate of dity . Rupees _ seventy, ‘annas four perton” THE THIRD SCHEDULE (See section 17) Part I Rates of ‘Income-tax A—In the case of every individual, Hindu undivided family, unregi tered firm and other association of persons not being a case to which pare graph B of this Part applies— Rate (1) Onthe first Rs. 4,000 of total income .. um» Nie 2) On the next Rs. 2,000 of total income ... 1s» One annainthenpee @) On the next Rs. 4,000 of total income we w. Two. annas in the rupee. @) On the next Rs. 5,000 of total income ve see Three: annas_ in the rupee 45) On the next Rs. 5,000 of total income cea Four annas and sit pies in the (© On the balance of total income - ve Five —annas ia rupee. Provided that— (i) no income-tax shall be payable on a total income which, deduction of the allowance, if any, for earned income, does exceed Rs. 5,000; Gi) the income-tax payable shall in no case exceed half the by which the total income (before deduction of the said ance, if any, for earned income) exceeds Rs. 5,000 ; (iii) the income-tax payable on the total income as reduced by allowance for earned income shall not exceed either— 7 (a) a sum bearing to half the amount by which the total incom (before deduction of the allowance of earned in a exceeds Rs. 5,000 the same proportion as such reduced income bears to the unreduced total income ; or (b) the income-tax payable on the income so reduced # rates herein specified ; whichever is less. B—In the case of every company and local authority, and in ease in which under the provisions of the Income-tax Act, 1922 ( 1922), income-tax is to be charged at the maximum rate— Rate On the whole of total income... BS gs _ Five annas it rupee. ided that in the ease of a company, which is engaged undertaking to which section 15B of the Income-tax Act, 2), applies and which, in respect of its profits liable to taxTHE GAZETTE OF PAKISTAN, EXTRA, MARCH 6.1957 467 ome-tax Act, 1922 (XI of 1922), for the year en y of March, 1958, has made such effective arr: ad by the Central Government in this behalf for tie'< nd Fon eh aeable territories of dividends payable out ort i'for the deduction of super-tax from such dividenca: s iihae gly deducted super-tax from such dividend F 1scg (i) where the total income, a: reduced by ei and'by the amount, if any, exempt fro the amount of any dividends (including fixed rate) declared in respect of the wi vious year for the assessment for the year endin first day of March, 1958, and the company is a company in which the public are substantially interested within the mean Ex lanation 1 to sub-section (1) of section 23A of the Inet me g on the thirty- ments as may fe laration nas in the rupee me-tax, exceed lividends payable ole or part ata tax Act, 1922 (XI of 1922), a rebate shall be allowed at tha of one anna per rupee on the amount of such exce where the amount of dividends referred to in clause (i) at exceeds the total income as reduced and by the amount, if be charged on the to’ to the sum, if any y eight annas , exempt from inc 1 income an additional , by which the aggregate am actually borne by such excess (hereinafter ed to as excess dividend”) falls short of the amount calculated at {} rate of five annas per rupee on the excess dividenc © purposes of the above proviso, the expression “dit the meaning assigned to it in clause (6A) < Ac >the c 1922 (XI of 1922) and shall also include profits ( Ir istributed as bonus shares, but any distribution Cade that expression, made during the year ending on the thirty- of March, 1958, shall be deemed to be a dividend declared in of the whole or part of the previous year. the purposes of clause (ii) of the above proviso, the pnt of income-tax actually borne by the excess dividend sha’ emined as follows :— (i) the excess dividend shall be deemed to be out « Such portion of the undistributed profits of one immediately pr or more ye: ceding the previous year as would be j sufficient to cover the amount of the excess dividend and as have not likewise been taken into account to cover an excess dividend of a preceding year ; ) such portion of the excess dividend as is deemed to be out of undistributed profits of each of the said years shall be deemed to have borne tax,— (a) if an order had been made under sub-section (1) of section A of the Income-tax Act, 1922 (XI of 1922), in respect of undistributed profits of that year, at the rate of five annas in the rupee, and (b) in respect of any other year, at the rate applicable to the total income of the company for that year reduced by the tate at which rebate, if any, was allowed on the undistri- buted profits.468 ‘THE GAZETTE OF PAKISTAN, EXTRA,, MARCH 6, 1957 Part II Rates of Super-tax Hindu undivided family, unregis ons not being a case to which ang A—In the case of every individual tered firm and other association of per other paragraph of this Part applies— Rate Nil we Twoand a quit annas in the rp (1) On the first Rs. 25,000 of total income (2) On the next Rs. 5,000 of total income (3) On the next Rs. 5,000 of total income we sx Two and a half ag in the rupee. (4) On the next Rs. 10,000 of total income if +. Three annas in & rupee. (5) On the next Rs. 10,000 of total income ... a . Three anda i Annas in the rap (© On the next Rs. 15,000 of total income ai ay Five annas in rupee. (7) On the next Rs. 15,000 of total income fis va Sixannas in | rupee. (8) On the next Rs. 15,000 of total income a Seven annas in rupee. (9) On the next Rs. $0,000 of total in Eight annas in Tupee. (10) On the balance of total income we» Nine —annas in rupee. B.—In the case of a registered firm— Rae (1) On the first Rs, 25,000 of total inco .. Nil. (One anna in then (2) On the next Rs. 35,000 of total income (3) On the balance of total income oA .» One and a hall # in the rupee C—In the case of every local a ri 7 uthority— ¥ loc y rate ‘On the whole of total income... me ve Two annas if rupee. Din the case of an association of b a s co s Ss of persons being a_co-opé “rag for the time being registered under the Co-operative Societies! dg (XI of 1912), or under an Act of a Provincial Legislature gover registration of co-operative societies :— (1) On the first RS. 25,000 of the total income (2) On the balance of total income Rate (H) Where the total income does not exceed Rs. 25,000 . Four annas is i rupee. _ (2) Where'the totalincome exceesis Rs. 25,000... Five annas it = we rupee._— THE GAZETTE OF PAKISTAN, EXTRA., RCH 6, 1957 469 Provided that— (i) a rebate at the rate of two annas per rupee of the tot shall be allowed in the case of any company which in respect its profits liable to tax under the Income-tax Act 1922), for the year ending on the thirty-first day has made such effective arrangements the C | Government in this behalf f payment in the taxable territories of the such profits and for the deduction dividends ; may (ii) a rebate at the rate of one anna per rupee of the total income 1 be allowed in the case of any company which being entitled to a rebate under the preceding clause, i (a) a public company the shares of which were offered for s in a recognized stock exchange at any time during previous year, or (b) a company all of whose shares were he previous year by one or more such public companies as foresaid. ation—For the purposes of clause (ii) of this proviso, 1 be deemed to be a public compat within the meaning of the Companies Act (Vi mpany in which shares carrying more than fifty per cent ting power were, at any time during the d by less than six persons. THE FOURTH SCHEDULE (See section 18) tnissions and modifications in the Finance (Supplementary) Act, 1950 Omissions “Sections 2, 3, 4, 5, 13, 14, 15, 18, 21 and the heading “Part III” and ion 28 shall be omitted. Moprrications ds “displaced a) In the Preamble, for the word “refugees” the ” shall be substituted. (b) For sub-section (2) of section 1, the following sub-section shall stituted, namely :— the exception of (2) It extends to the Federal Capital, and II, to the rest of section 6 in Part I and the whole of Pa Pakistan ”. In sections 6, 7, 9, 10, 11 and 19, for the figures “1951”, the “1958” shall be substituted.470 THE GAZETTE OF PAKISTAN EXTRA, MARCH 6, 1957 (d) For section 8, the following shall be “8. (1) For the year endin; t a g on the there shall Be levied on ever Person a tax according | scale set out in Schedule II on sales of goods made’ within the meaning of the Sales of Goods Act, 193 substituted, namely thirty-first day of Mar Provided that no tax shall be levi: able on the sale of claims, money, stocks and shares, (2) The tax shall be computed on the basis of sales in th Preceding year, (3) The Central Governme: nt may make rules providing { manner of assessment and recovery of the tax.” (e) In sub-section (2) of section 9, the following shall be namely :— “Any owner or charterer who fails to collect and 1 provided herein and the rules made under this eecti liable to a penalty not exceeding the amount of ter (2) For sub-section (1) of section 12, the following sub-sectio be substituted, namely : (1) For the “Surcharge there on land land w revenue: year ending on the thirty-first day of M: Il be levied and collected from ev lich is assessed to land revenue amount of land revenue by way of s t specified in Schedule IV to this Act.” (g) In sub-section (2) of section 16, for the words Government”, the words “ Central G overnment ” shall be st (h) For sub-section (1) of section 20, the followi shall be substituted, namely :— two sub- “(Q) There shall be levied and collected from every } ‘ eared in the import or export trade who holds a issued under the Imports and Exports (Control) A CEXXIX of 1950), a tax on the value of the good or, as the case may be, exported, against such licence, ing to the scale set out in Schedule VI to this Act. 5 (1A) The Central Government may, by notification in ti Gazette, exclude any class of licence issued as afore: the purview of sub-section (1), o: order in writing, exempt a person holding such dice the payment of the whole or a part of the tax payabl in respect of the goods imported or exported aga’ licence, ” G) In sub-section Sub-section (3) of secti The words “ (8) of section 23, sub-section (3) of secti a ion 25, for the words “ Provincial Governr Central Government” shall be substituted.THE GAZETTE OF PAKISTAN, EXTRA., MARCH 6, 1957 ) The following new section shall be insert 5 scion 254, namely :— serted after section 25 as “25A. If the person on whom the tax is levied or who is respon- sible for the collection and payment of any tax or toll under sections 19, 20, 23, 24, or 25 fails to pay the tax or toll as provided in the said section and the rules made thereunder, he shall be liable to a penalty not exceeding the amount of the tax or toll payable.” (k) For Schedule II, the following shall be substituted, namely :— “SCHEDULE II (See section 8) Scale Amount of tax Where sales do not exceed Rs, 49,999 ; Nil. Where sales ed Rs. 49,999 but do not exceed Rs. 99,999. Rupees twenty Where sales exceed Rs. 99,999 but do not exceed Rs. 1,99,999. Rupees one hundred. Where sales exceed Rs. 1,99,999 but do not exceed Rs. 4,99,999. Rupees three hundred. Where sales exceed Rs. 4,99,999 te . Rupees five hundred,” THE APPROPRIATION ACT, 1957 Acr No. II or 1957 [4th March, 1957] to authorise payment and appropriation of certain from and out of the Federal Consolidated Fund the service of the financial year 1957-58 EREAS it is expedient to authorize payment and iation of certain sums from and out of the Federal dated Fund for the service of the ‘financial year It is hereby enacted as follows :— 1. This Act may be called the Appropriation Act, 1957. Short title. 2. souvuta JO Snsquyy oxp Jo sumypuodya s9%0 SqUOUIIIDAOH TeputAogg pur yenued ap usemjoq sjusur “asnfpy —snoou “* suorsueg pue wenuea ay qUIAY pur AouarInD : upny * samsag 19aq gnuexeRy JO won29|100) uo sumyypuad 1040 “* xey sopeg pue xey “wome104305 ‘QUIOOU] UO sox¥], sasoding pu sooraiog @RCH 6, 1 , MAF THE GAZETTE OF PAKISTAN, EXTRA sossorg Sur Jomog pur jan ‘uone’ 000°SP‘L9'8T *-yuoudojaasg [eEysnpuy uo Kepng jeydes a] JO Ansuryy amp Jo exmupucdxg sO 000°IS"9 sonysny Arauontig nnredaqy sounysny sunuyg pi 000‘¢8"¢¢ cod 000° 000°Lb‘L1°T : 000°Lr'LI'TTHE GAZETTE OF PAKISTAN, EXTRA., MARCH 6, 1957 416 a ieeeeterin ee (000'41'6 000'T ror fo SooUDNOY PUPRGOHORNOH “DVIS Tavastyed JO AQMOSsY TUOH EN saregy Areyuoareyed JO Ans! 88 000°T9's soneng Jo wonens nUpy “LB 000°00'0S‘T ee 000°70°L e 2 Mey Jo ANstuA “98 000'LI*FI snogry Jo Anstur, oy Jo canprpusdxg 1M "SS 000°CL7Z COREUEEIO | quewsojdwg puv somoduey “8 ooo'zr‘er snoge] Jo ANSIUIN “£8 Ooorrss =~ auysey{ Wosy suOsIed voided jo Boney rqeaey uo Avpno [eudeD 7B 000°6S*rL 000°6S"bL “+ srrayyy aTUIySeSy 30 fom on fa somypind uo Aepno ended “18 000°7E'8r 000°E'8b aqurysey Woy sop Poowidsil ‘ou THI payoouuioo aingrpusdxg “08 000‘91°8 000°91'8 sregy saysey Jo ANSTUIA “6L o00'LhT 000°L¢T ae om jo Snsrur oy3 r eanqrpuedxg 1910 “8L Q00°cE'E o00'zE'e x eougjed TID “LL su “UY U e pun parvpl] quowlerivd qVLOL -osuog [o4apad q para 310A ays uo passvyD sasoding pur S20!M0S a ae Ee 4 Surposoxo you sung @417 THE GAZETTE OF PAKISTAN, EXTRA., MARCH 6, 1957 ‘anja.zag figndaq ‘ZV UV 000°01'S3'876 000°E9‘9L‘EES O00'sr'LS'S 000'sL's “ es 000'rs*T 0000's 000°LP'80°S6E 000'9P'EF'S 000°29'S 000°8S"bz'9 ‘WIOL, SYOA AID wo KepNO | Tendea yes9pa MON wo - Visions were provisions of this Act ani referred to business profits tax instead o! to ineome-tax, and every officer exerts ing powers under the said provisions it Tegard to income-tax may exercise the like powers under this Act in regard business profits tax as he exercises in rel tion to income-tax under the said Act: Provided that references in the said pro- visions to the assessee shall be con trued as references to a person to whose business this Act applies. (2) Any reference in this Act to the Income- tax Act, 1922 (XI of 1922) shall, in rele tion to the profits of any changeable accounting period and to the state 0! affairs and all the circumstances ae sary to determine the charge fo busines? Profits tax, mean the said Act as in force in the relevant period : Provided that whatever be the relevant period, references to section 46 of 4 said Act shall be deemed to inclu A reference to sub-sections (8), (9) al (10) of that section.” Amendment 43, Section 1 i ‘XII of 1942) SACI shall be omaiigld Of the Finance Act, 1942 ( Amendment 14. Section 2 of i 198 f Ord the Excess Profits Tax Ordinance, Huron" (XVI of 1943) Suan fe Excess F493 15. The following amendments shall be made in the Amendment Sales Tax Act, 1951 (III of 1951), namely :— oor i (1) For sub-section (2) of section 1, the following sub- section shall be substituted, namely :— “(2) Tt extends to the whole of Pakistan” ; (2) In section 2, for clause (16), the following clause shall be substituted and shall be deemed to have been substituted on and from the sixteenth day of March, 1956, namely :— “(16) ‘sale price’ means— (i) as respects goods chargeable with the duty of excise under the Central Excises and Salt Act, 1944 (I of 1944), the value deter- mined under section 4 of the said Act plus the said duty, and, where the provisions of the said section 4 do not apply, the value which would have been determined if the said section 4 had applied plus the said duty ; and (ii) in other cases, the price before any amount payable in respect of tax is added and includes any duty of Provincial excise, whether or not paid by the assessee, and any charges for advertising, financing or any other charges of a similar nature con- tracted for at the time of sale whether charged separately or not”; (3 In section 3— (a) For the words “the Provinces of Pakistan or the Capital of the Federation” and the words “the Provinces of Pakistan and the Capital of the Federation”, the word “Pakistan” shall be substituted ; (b) In clause (i) of sub-section (3), the words, brackets, figures and commas “or, where the goods are chargeable with a duty of excise under the Central Excises and Salt Act, 1944 (I of 1944), the value determined for the levy of the said’ duty, plus the said duty” shall be omitted and shall be deemed to have been omitted on and from the 16th day of March, 1956 ; (4) In sub-section (1) of section 7, after the words “goods or class of goods”, the words “or any person or class of persons” shall be inserted ; (5) In sub-section (2) of section 16, after the words “the date of that order”, the brackets, words and commas “(or within such further period as the Commissioner may consider fit to allow on being satisfied that the assessee was prevented by suffi- cient cause from making the application within that period)” shall be inserted ;THE GAZETTE OF PAKISTAN, EXTRA. MARCH 7, 1957 (6) In section i7— (a) In the proviso to sub-section (7), for the words “Federal Court ”, the words “ Supreme Court” shall be substituted, * (b) Sub-section (9) shall be omitted ; (7) After section 27, the inserted, namely :— 7A. Power to set off amount of refunds against tax remaining payable—Where under the provisions of this Act, the Income Tax Act, 1922 (XI of 1922), the Excess Profits Tax Act, 1940 (XV of 1940), the Finance Act, 1942 (XI of 1942), the Excess Profits Tax Ordinance, 1943 (XVI of 1943) and the Business Profits Tax Act, 1947 (XXI of 1947), a refund or repayment is found to be due to any person, the Sales Tax Officer, the Appellate Assistant Commissioner or the Commissioner, as the case may be, may, in lieu of the payment of the refund or the repayment, set of the amount to be refunded or repaid, or any part of that amount against the tax, if any, remain- ing payable by the person to whom the refund or repayment is due ;” (8) In sub-section (3) of section 38— (a) for clause (e), the following clause shall be substituted, namely :— “(e) of any such particulars to the Comp troller and Auditor General of Pakistan for the purpose of enabling him to dis charge his functions under the Constit- tion ; or” ; (b) Tn clause (f), for the words “ Auditor General of Pakistan”, the words “Comptroller and Auditor General of Pakistan” shall be subst- tuted ; { (c) In clause (g), for the words, figures and comma “Government of India Act, 1935”, the word “Constitution” shall be substituted. following section shall be Amendment 16. In section 3 of the Sind Urban Immovable Pro of, Sind Act perty Tax Act, 1948 (Sind Act IX of 1948)— () For the figure “5”, the figure “10” shall be substituted ; a ee (2) In the first roviso, after the word “ Provided”, the word “further shall be inserted and before that proviso, the following new proviso shall be Inserted, namely :— “Provided that in the case of buildings and lands the annual letting value of which exceed 000 but does not exceed Rs. 20,000, such levied and paid at the rate of 5 per cent of/such annual letting value”.17. (1) Subject to the provisions of sub-sections (3), (4) and (5), for the year beginning on the first day of April, (a) in in F me-tax shall be charged at the rates specified ‘art I of the Third Schedule ; and (b) the rates of super shall, for the purposes of section 55 of the Income-tax Act, 1922 (XI of 1922), be those specified in Part II of the Third Schedule. (2) In making any assessment for the year ending on e thirty-first day of March, 1958, there shall be deducted from the total income of an asse see in accordance with the provisions of section 15A of the Income-tax Act, 1922 (XI of 1922), an amount equal to one-fifth of the earned income, if any, included in his total income, but not exceeding in any case four thousand rupees. (3) In making any assessment for the year ending on 31st day of March, 1958— the (a) where the total income of an a essee, not being a company, includes any income chargeable undex the head “ Salaries” as reduced by the deduction for earned income appropriate thereto, or any come chargeable under the head “ Interest on securities”, or any income from dividends in respect of which he is deemed under s ection 49B of the Income-tax Act, 1922 (XI of 1922), to have paid income-tax imposed in the taxable territories the income-tax payable by the assessee on that part of his total income which cc nsist: such inclusions shall be an amount bearing to the total amount of income-tax payable according to the rates applicable under the operation of the Finance Act, 1956 (I of 1956), on his total income the same Proportion as the amount of such inc lusions bears to his total income ; and t (b) where the total income of an a e a company, includes any income chargeable undes the head “Salaries” on which super-tax has been or might have been deducted under the provisions of sub-section (2) of section 18 of the Income-tax Act, 1922 (XI of 1922), the super-tax payable by the assessee on that portion of his total income which consists of such inclusion shall be an amount bearing to the total amount of super-tar payable according to the rates applicable under the opera- tion of the Finance Act, 1956 (I of 1956) on his total income the same proportion as the amount of such inclusion bears to his total inc ome, e, not being making any assessment for the ye: r ending on y-first day of March, 1958,— (9) where the total income of a company includes any Profits and gains from life insurance business, tro Super-tax payable by the company shall be reduced THE GAZETTE OF PAKISTAN, EXTRA., MARCH 7, 1957 sd Income-tax ‘and super- tax.Continuation of Act LXIV of 1950, THE GAZETTE OF PAKIS AN, EXTRA., MARCH 7, 1957 by an amount computed at the rate of two a in the rupee on that part of its total income wi consists of such inclusion; and (b) where the total income of an assessee, not being a company, includes any profits and gains fi life insurance business, the income-tax and sup tax payable by the assessee on that part of total income which consists of such inclusion # be an amount bearing to the total amount of s taxes payable on his total income according rates applicable under the operation of the Act, 1942 (XII of 1942), the same propot the amount of such inclusion bears to his total in come so however that the aggregate of the so computed in respect of such inclusion s! in any case exceed the amount of tax payable such inclusion at the rate of five annas in th (5) In cases to which section 17 of the Income-tax A 1922 (XI of 1922), applies, the tax chargeable determined as provided in that section, but with referenc to the rates imposed by sub-section (1) and in accorda where applicable, with the provisions of sub-sectio 3) and (4) of this section (6) For the purposes of making any deduction income-tax in the year beginning on the first day of Ap! 1957, under sub-section (2) or sub-section (2B) of secti of the Income-tax Act, 1922 (XI of 1922), from any e income chargeable under the head “Salaries”, th mated total income of the assessee under this head s! computing the income-tax to be deducted, be redu an amount equal to one-fifth of such earned income, bi! not exceeding in any case four thousand rupees. (1) For the purposes of this section and of the rates of tax imposed thereby, the expression “total inco Means total income as determined for the purp income-tax or super-tax, as the case may be, in accordance with the provisions of the Income-tax Act, 1922 (XI 1922), and the expression “earned income” has the mea ing assigned to it in clause (6AA) of section 2 of that Act 18. (1) The Finance (Supplementary) Act, 1950 (LX of 1950), (imposing certain new taxes and duties for the purpo: of meeting expenditure on the rehabilitation displaced persons) shall, with the omissions and mod flons ‘set out in the Fourth Schedule to this Act, contin the pctation after the thirty-first day of March, 19 i the Provisions of the said Act with the aforesaid om ries modifications were enacted in and formed part of this (2) ae rules made under the Finance (Supplementars ot, 195 s er the Finance (Supplementa festid20? (EXLV of 1950), shall, with the necessary ™m of the aig ateemed to be rules made under the provisio he said Act ag continued and made part of this ActTHE ZETTE OF PAKISTAN, EXTRA., MARCH 7, 19! t to any omissions, additions and modifications whick al Government may m: e in m, shall have accordingly. in this section shall affect the application (Supplementary) Act, 1950 (LXIV of 1950), xes and duties imposed thereby, in to any period before the first day of April, 1957 THE FIRST SCHEDULE lule tc nserted in the Post Office Act, 1898) (See section 3) THE FIRST SCHEDULE INLAND POSTAGE RATES (See section 7) Lerrers x Co One and or fraction thereof exceeding one tola One ar Post-Carps Nine pics. One and a hal ParrerN AND SAMPLE PACKETS on therec One ann Jitional two and a half tolas or fraction thereof in excess Six pies Book PACKETS tolas or fraction thereof One any ditional two palf tolas or fraction thereof in excess of Three pi REGISTERED NEWSPAPERS tolas or fraction thereof Hi not exceeding of registered newspapers ional five tolas or fraction thereof in excess of ten tolas... Quai PARCELS ereof, exceeding forty tolasTHE SECOND SCHEDULE (See section §) Amendments to be made in the First Schedule to the Central Excisey and Salt Act, 1944 ¢ in the third column “one ry eight annas and six pies per Imperial gallon” shall be substituted 2. In sub-item TI(2) of item 9— Gi) for the existing entries against item (viii), the following shal be substituted i Ttem Description of goods Rate of daty No. “(vili) exceeds Rs. 6-8 a thousand but does not exceed Rs. 10 a One rupce.and abe thousand, annas." (ii) The following Sub-item shall be added :— Item Description of goods Rate of duty No. “* (ix) does not exceed Rs. 6-8 a thousand Four annas.” 8. The existing item 10 shall be substituted by the following :~ Ikem Description of goods Rate of duty No. “10 ‘Tyre’ means. a pneum ictyre in the manufacture of which rubbers used and includes theinner tube and the outecco ct Such a tyre— (@ outer cover of cycie tyre Twelve annas per tyre. Four annas pet tube. (©) inner tube of cycle tyre P item 18 for the existing entries in columns 2 and 9 the follows shall be substituted, namely :— Description of goods Rate of di oeloth produced in a factory ordinarily using power in the course of production of cloth : (1) * cotton cloth *means cloth of any description manu either wholly or partly from cotton than 10 per cent of ‘cotton by weight @) * coarse cotton cloth * that is to Say all cloth in which the Six ies per s Average count of yarn is less than 17s, ii) * medium cotton cloth * that is to say all cloth in which the Two annas pet ierage count of yarn is 17s or more but is less than Ise ; (iii) * fine cloth * that is to. say all cloth in which the average Three annas per $9. * count of yarnis 358 or mere. Explanation 1— Count’ Explanation 2.—For the ini ve count of yar the following rules shall {2€,PUtPose of determining the average lured and containing not less — ° ay Means count of grey yarn, (>) for multiple fold yarn, the Count of the basic single yarn shall bt taken and the numberof ends er inch in the read ‘oe 's per inch, as the iplied by th ee ©ase may be, shall be multiplied by