16CC. Charge of minimum tax.-

1[16CC.] Charge of minimum tax.-

(1)   This section shall apply to a company in the case where, for any reason whatsoever, including the sustaining of a loss,the setting off of a loss of an earlier year, the application of tax credits or rebates, or the claiming of allowances or deductions (including depreciation and amortization deductions) allowed under this Ordinance or any other law for the time being in force, tax is not payable or paid by such company for an assessment year, or tax payable or paid by such company for an assessment year is less than 2[point two five  per cent (0.25%) of the amount representing such company’s turnover from all sources for that year or taka five thousand whichever is higher.

(2) Where this section applies, -

  (a) the aggregate of the company.s turnover assessed for the assessment year shall be deemed to be the income    of       such company for the year chargeable to tax;

   (b) such company shall pay as income tax for the assessment year an amount equal to3[point two five per cent(0.25%) of the turnover      assessed for the  year or taka five thousand whichever is higher.

Explanation: For the purposes of this section, "turnover" means-
(a) the gross receipts derived from the sale of goods;
(b) the gross fees for rendering services or giving benefits including commissions or discounts;
(c) the gross receipts deprived from any heads of income excluding income from capital gains and receipts under speculation business;
(d) the company's share of the amounts stated above of any association of persons of which the company is a member.]

1. Ins.Sec. 16CC  by F.A. 2006 and subsequently omitted by F.O. 2008

2. Subs for "half per cent (0.50%)" by F. O. 2007

 

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