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Transactions under dealership arrangements
(1) Where a person supplies products listed in the Third Schedule to the Sales Tax Act, 1990 or any other products as prescribed by the Board, under a dealership arrangement with the dealers who are not registered under Sales Tax Act, 1990 and are not appearing in the active taxpayers’ list under this Ordinance, an amount equal to seventy-five percent of the dealer’s margin shall be added to the income of the person making such supplies.
(2) For the purposes of operation of this section, ten percent of the sale price of the manufacturer shall be treated as dealers margin.
(2) For the purposes of operation of this section, ten percent of the sale price of the manufacturer shall be treated as dealers margin.
Amendment history (7)
- Sub-section (6) added by the Finance Act, 2024.
- New sections (108A) & (108B) inserted through Finance Act, 2019
- The word “or” omitted by the finance Act 2022.
- Full stop substituted with a semicolon by the finance Act 2022.
- Inserted by the finance Act 2018
- Full stop substituted and a new clause (e) added by the Finance Act 2022.
- Added by the finance Act 2018
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 207
Unofficial reference, compiled from the FBR’s consolidated Income Tax Ordinance 2001 (amended up to 30 June 2026). Provided for general information only — not an official FBR publication and not legal or tax advice. Always verify against the official FBR text before relying on it for filing or any decision.