A.P. MOLLER THROUGH AGENT versus TAXATION OFFICER OF INCOME TAX
Sections 7, 11, 107 and 143 of cargo carried by foreign sellers / tenants were shipped out of Pakistan to Pakistan; the sale of such goods to Pakistani buyers by foreign sellers on FOB basis. Carriers to pay freight charges to carriers in Pakistan by resident buyers For payment of income tax on the delivery of Section 7 of the Income Tax Ordinance 2001, the carriers shall apply on freight charges for cargoes in Pakistan, whether in Pakistan or Pakistan to receive out and receive goods, on receipt of goods or on Income Tax Freight charges paid by the buyers through which the cargo departing from Pakistan should be deported to Pakistan for taxation under section 7 (1) (b) under Section 143 of the Ordinance 2001 Taxes will be binding. Under Section 4 (1) of the Ordinance, buyers (herein Pakistani importers) in FOB contracts shall be deemed to be parties, rather than section 7, to pay bills for the payment of freight charges. Goods to be shipped will be valid and up to the point of payment of freight till Pakistani buyers retain the goods. According to Section 7 (1) (b) of the Ordinance, freight was received by carrier in Pakistan and according to the avoidance of double taxation agreements (DTA) by Pakistan with France and Denmark, the source state Was the one in which payment was made and such state was entitled to tax on such payments. In the present case, payment was made in Pakistan.
Related judgments — Karachi High Court Sindh, 2011
