313 ELIGIBILITY FOR DIVIDEND The shares being issued shall rank pari passu with

313 eligibility for dividend the shares being issued

This preview shows page 34 - 36 out of 94 pages.

3.13 ELIGIBILITY FOR DIVIDEND The shares being issued shall rank pari-passu with the existing shares in all matters, including the right to such bonus or right issue and dividend as may be declared by the Company subsequent to the Issue of such shares. 3.14 DEDUCTION OF ZAKAT Income distribution will be subject to deduction of Zakat at source, pursuant to the provisions of Zakat and Ushr Ordinance, 1980 (XVIII of 1980) as may be applicable from time to time (except where the Ordinance does not apply to any shareholder or where such shareholder is otherwise
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Page 35 of 94 exempt or has claimed exemption from payment/deduction of Zakat in terms of and as provided in that Ordinance. 3.15 CAPITAL GAINS TAX Capital gains derived from the sale of listed securities are taxable in the following manner under Section 37A of the Income Tax Ordinance, 2001. Tax Rate Holding period of securities S. No. Tax Year less than six months more than six months and less than one year more than one year 1 2011 10.0% 7.5% 0% 2 2012 10.0% 8.0% 0% 3 2013 10.0% 8.0% 0% 4 2014 10.0% 8.0% 0% 5 2015 17.5% 9.5% 0% 6 2016 Not available 10.0% 0% 3.16 WITHHOLDING TAX ON DIVIDENDS Dividend distribution to the shareholders will be subject to withholding tax under section 150 of the Income Tax Ordinance, 2001 at the rate of 10% as specified in part I, Division III of First Schedule to the said Ordinance as amended from time to time. In terms of the provision of Section 8 of the said Ordinance, said deduction at source, shall be deemed to be full and final liability in respect of such profits, in case of individuals only. 3.17 SALES TAX ON SALE/PURCHASE OF SHARES Under the Constitution of Pakistan and Articles 49 of the 7th NFC Award the Government of Sindh and the Government of Punjab have promulgated the Sindh Sales Tax on Services Act, 2011 and the Punjab Sales Tax on Services Act, 2012 respectively. The Sindh Revenue Board and the Punjab Revenue Authority administer and regulate the levy and collection of the Sindh Sales Tax (SST) and Punjab Sales Tax (PST) respectively on the taxable services provided or rendered in Sindh or Punjab. The value of taxable services for the purpose of levy of sales tax is the gross commission charged from clients in respect of purchase or sale of shares in a Stock Exchange. The Second Schedule of the above mentioned Acts levy a sales tax on Brokerage at the rate of 16%. Under the Sindh Sales Tax Special Procedure (Withholding) Rules, 2011 and the Punjab Sales Tax on Services (Withholding) Rules, 2012, amount(s) charged under the aforementioned Acts is liable to be withheld at source if provided to persons mentioned under Rule 1 (2) of the aforementioned rules. 3.18 CAPITAL VALUE TAX (CVT) ON PURCHASE OF SHARES Pursuant to amendments made in the Finance Act 1989 through Finance (Amendments) Ordinance, 2012 promulgated on April 24, 2012, 0.01% Capital Value Tax will be applicable on the purchase value of shares.
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