10. Amendment of section 10 of the principal enactment,

Amendment of section 13 of the principal enactment.

It.

Sction 13 of the principal enactment Is hereby amended as follows .:—

to “is solely for the purpose of making— of the words “debits made from any current account being a special account, opened by any person in a commercial bank for the purpose of making —

“debits made from any” to “is solely for the purpose of making—” of the words

Debits Tax (Amendinent) Act, No. 3 of 2003 7

“debits made from any current account being a special account opened by any person specified hereunder ina commercial bank for the purpose of making—" :

of the. following new sub-paragraphs :—

“(ii) | payments in relation to the purchase of stock issued in terms of the

Registered Stocks and Securities

Ordinance (Chapter 420) made by any person or body of persons, at the issue of such registered stock ;

(iii@) payments in relation to the purchase of securities issued in terms of the

Registered Stocks and Securities

Ordininee (Chapter 420) and treasury bills issued in terms of the

Local Treasury Bills Ordinance

(Chapter 417). by any person or body of persons, at the issue of such securitics or bills :

“by another commercial bank” of the words “by such bank, another commercial bank”:

“financial intermediaries” or

“financial intermediary” wherever it appears. of the words “any other entity engaged in financial intermediation activity”;

by the addition immediately after sub-paragraph (viii) of paragraph (c) of that subsection of the following proviso :—

“Provided that)

the exempt transactions referred to in paragraphs (4) and (c) of subsection (1) shall be routed through a single special current account, A separate declaration shall be made for each exempt activity and a single undertaking shall be provided to the effect that such account shall be used only for debit tax exempt activilies.”:

by the substitution for sub-paragraph (i)

thereof of the following :—

“(i) debits made from such account kept in'a commercial bank or specialised bank that represent transfer of funds in the name of the same account holder from one current account to another, or from a current account

Debits Tax (Amendment) Act, No. 5 of 2003

y lo a savings account, or from a savings account lo a current account, or from one savings account to another, within the same commercial bank or specialised bank or between different commercial banks or specialised banks”;

“commercial bank or specialised bank” and

“any current account or savings account”; and

“Provided further, that in cases where banks are able to identify the exempt debits specified in sub-paragraphs (i). (ii) and (iii) of paragraph (d) of subsection (1), the bank may exempt the debit without a declaration from the account holder as is required above and refrain from collecting debits tax on the same. No bank shall be indemnified against any error made by the granting of any such exemption.

Any bank who so makes an error in the sranting of an exemption shall be liable to a penalty of rupees ten thousand in respect of each such exemption wrongfully granted.”.