Telcos Paid Rs 34.2 Billion As Income Tax During Last 5 Years

The five cellular companies have paid Rs 34.26 billion as Income Tax to the government during last five years (2012-13 to 2016-17).

The companies name and the amount of tax paid by it cannot be disclosed in view of section 216 of the Income Tax Ordinance, 2001 for the taxpayer.

However, total tax paid by the five mobile companies during last five years is as under:

According to Finance Ministry documents, audit is conducted under three tax statues i.e. Income Tax Ordinance, 2010, Sales Tax Act, 1990 and Federal Excise Act, 2005.

Audit commences after the case is selected for audit under section 177/214C of the Income Tax ordinance, 2001, section 72B/25 of the Sales Tax, Act, 1990 and Section 46/42B of FED Act, 2005.

Selection is done by both the concerned Commissioner and Federal Board of Revenue (Audit The selection is based on different risk parameters (viz-a-viz ITO, 2001, STA, 1990 and FEA, 2005) such as excess claim of P&L expenses, low profitability to assets ratio, consistently many years, high ratio of input tax to output tax, and carry forward of input tax.

After selection of case for the process, the “Audit Manual” prescribes a preaudit conference with the taxpayer in which scope of audit and time line to complete audit is decided.

Consequently “Information Document Request” (IDRs) is issued for seeking relevant records and information.

After obtaining books of accounts and documents provided by the taxpayer an audit report is prepared and if required a post audit conference is again conducted with the taxpayer to appraise the legal and factual discrepancies.

After affording such opportunity, an amended order is passed containing discussion and findings of the tax audit officer, which is served upon taxpayer along with tax demand notice.

Following aspect of tax affairs of taxpayers are also taken into consideration auditing the case:

  • Verification of withholding taxes with respect to disallowances of expenses u/s 21(c) of the ITO, 2001.
  • Examination of genuineness of liabilities declared in the balance sheet.
  • Verification of the input tax claimed u/s 8 of the STA, 1990
  • Verification of all taxable supplies whether the same have been charged to sales tax or not.
  • Transactions with associates are measured at Arm’s Length standard.
  • Admissibility of depreciation and amortization expenses is verified in accordance with section 22, 23 and 24 of Income Tax Ordinance, 2001.
  • Admissibility of P/L expense is verified in view of the provisions of section 20(1)/174(2) of the ITO, 2001.


  • 9.335 Billion in 2016-17, sirf telecom sector se baqi aur sectors se mila kar kitna hota hoga phir bhi Pakistan ko qarze ki zaroorat parhti hai, agar shuru se govt mein kuch educated Economists hote to aj Pakistan ka ye haal na hota

      • Usi ka nateeja bhugat raha hai Pakistan aur kehte hain na jis ka kaam usi ko saanjhe unfortunately hamare yahan ek Economist ka kaam un se liya gaya jo shayad he Economist ka matlab jante hon

    • Hamare Yaha Minister Wahi Bante hai Jo uNEducated Ho & Unki Releation Ship Ho Government Main :
      Agar Educated Univertry Toppers, Youngsters Ko Bethao to Qarza 5 Saal K Andar Uthar Jayega :


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