COMMISSIONER LEGAL DIVISION, KARACHI versus MERCK (PRIVATE) LIMITED, KARACHI
Section 156 Rewards and Winners Prize Offered to Promote Sales by Companies Claiming Sales Promotion Claims Sales Taxes and Sales Promotion Expenses Taxes That Provided Section 156 of the Income Tax Ordinance 2001 There was no tax withholding of 20%. The deductions, which were deducted, explained that the nature of spending on sales promotion was quarterly meeting, annual sales conferences, training expenses, organization services compensation, promotional lottery tricks, advertising, commercial incentives and consumer clubs. And the expenses incurred under such heads were not defined by awards and wins. The accuracy tax officer could not determine the exact nature of some of the costs because allegedly details / evidence were not provided to support such expenses, while applying certain laws such as quarterly expenses, such as cycle meetings, annually. The details of these expenses on the sales conference, training costs, advertising in Medical Journals and to find out whether they were canceled by the Appellate Tribunal under the meaning of the First Appellate Authority's Prize Order and The case was remanded. Taxation Officer for De Novo proceeding, considering the appellate tribunal's findings, after confirming the taxpayer's appropriate opportunity for a hearing
