ITO Section 236

Telephone [and internet] users.-

(1) Advance tax at the rates specified in  [Division V] Part IV of the First Schedule shall be collected on the amount of –

• (a) telephone bill of a subscriber;  [ ]
• (b) prepaid cards for [ ] telephones ]
• (c) sale of units through any electronic medium or whatever form  [; and] 
• [“(d) internet bill of a subscriber; and
• (e) prepaid cards for internet.”]

(2) The person preparing the telephone [or internet] bill shall charge advance tax under sub-section (1) in the manner telephone [or internet] charges are charged.

(3) The person issuing or selling prepaid cards for [ ] telephones [or internet] shall [collect] advance tax under sub-section (1) from the purchasers at the time of issuance or sale of cards.

[(3A) The person issuing or selling units through any electronic medium or whatever form shall collect advance tax under sub-section (1) from the purchaser at the time of issuance of sale of units.]

(4) Advance tax under this section shall not be collected from Government, a foreign diplomat, a diplomatic mission in Pakistan, or a person who produces a certificate from the Commissioner that his income during the tax year is exempt from tax.