Define the following terms in the income tax ordinance Permanent establishment, Principal officer, Profit on debt

PERMANENT ESTABLISHMENT :-
According to income tax law ordinance it means a place of business through which the business of a person is wholly or partly carried on.

Following are included in this term :
1.    Place Management :-
A place of management means office, branch, factory or workshop.

2.    Place Of Extraction :-
Place of extraction of natural resources like a mine, oil or gas well.

3.    Building Site :-
A building site or a project of construction, installation or assembly.

4.    Place Of Supervisory :-
Activities connected with the site.

5.    Furnishing Of Consultancy :-
Connected with that project or other services  and such services should be more than 90 days in year.
Any property, asset or substantial equipment which is capable to rise the income.

6.    An Authorized Agent :-
Who has power to conclude the contracts on behalf of the other person.

An agent who has independent status



PRINCIPAL OFFICER :-
According to income tax ordinance principal officer means a person who deals with tax department regarding the accountability of his employers business is called principal officer.
With reference to a company or association of persons the principal officer means ;
a. A director
b. A manager
c. Secretary
d. Agent
e. Accountant
f. Treasure
g. Any other person whom the commissioner has declared him a principal officer.

Explanation :-
Regarding the tax requirements it is very difficult for the tax department to contact with every owner or shareholders for obtaining the details or documents of the business. The persons are required by law to submit the income tax return. For this purpose few responsible persons are declared as a principal officer.



PROFIT ON DEBT :-
According to income tax ordinance profit on debt means ;
·    Any profit, yield, interest, discount, premium or the amount payable on debt. But it does not include in the return of capital.
·    Any service fee or other charge in respect of debt.
·    Any fee or charge incurred in respect of a credit facility will also be treated as profit even this profit is utilized or not.