Pkrevenue.com

Day: August 11, 2019

  • FBR notifies last date of payment, sales tax return filing by electricity, gas companies

    FBR notifies last date of payment, sales tax return filing by electricity, gas companies

    ISLAMABAD: Federal Board of Revenue (FBR) has notified date for payment and filing monthly sales tax returns by electricity and gas distribution companies.

    The FBR amended Rule 18 of Sales Tax Rules, 2006 through SRO 918(I)/2019 dated August 07, 2019, under which registered persons are required to file monthly sales tax electronic returns.

    According to FBR, the due date of payment for electricity distribution companies is 18th of the month following the tax period in which the bill or invoice has been issued for the supplies made during the billing period. While the last date for filing returns electronically is 21sth day following the 18th day (for payment).

    For Independent Power Producers, the FBR said that the last date of payment is 22nd day of the month following the tax period of which sales tax invoice relates. The last date for electronic filing of sales tax return is 25th day following the 22nd day (for payment).

    In case of gas transmission and distribution companies, the last date of payment is 15th of the month following the tax period in which the bill or invoice has been issued for the supplies made during the billing period. The last date for electronically filing sales tax returns is 18th day following the 15th day (for payment).

    The FBR said that the last date of depositing sales tax collected on supplies by petroleum exploration and production companies is 18th of the month following the tax period in which supplies were made. While the last date for filing sales tax return is 21st day following the 18th day (for payment).

    The CNG dealers are required to make payment and file sales tax returns on quarterly basis. The FBR said that the last date of payment in case of CNG dealers is 15th day of the month following the end of quarter of the financia year. The last date for electronically filing sales tax return is 18th day following the 15th day (for payment).

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  • Investment in saving certificates rises by 19 percent to Rs2,217 billion

    Investment in saving certificates rises by 19 percent to Rs2,217 billion

    KARACHI: The investment in saving certificates has registered 19 percent growth to increase Rs2,217 billion in the last fiscal year owing to better rate of interest and safe investment avenue.

    The data released by State Bank of Pakistan (SBP) revealed that the investment increased to Rs2,217 billion by June 2019 as compared with Rs1,865 billion by end of same month of 2018.

    Experts said that the weak economic situation and continuous increase in interest rate by the central bank encourage investment in saving schemes.

    According to the central bank data the investment in the certificates issued by National Saving Center (NSC) rose by 20 percent to Rs2,096 billion by June 2019 as compared with Rs1,749 billion in the same month a year ago.

    The central bank had adopted monetary tightening stance since May 25, 2018 and pushed up interest rates to 13.25 percent from 6 percent during the past eight consecutive policy announcements.

    The market sources further elaborated that the deterioration in stock market was also a major factor behind significant investment in the government securities.

    As per the data the investment in the Defence Saving Certificates (DSC) increased to Rs393.58 billion by June 2019 as compared with Rs336.24 billion in the same month of last year.

    Meanwhile, the investment in Special Saving Certificates (SSC) grew to Rs413.71 billion fro Rs381.87 billion in the period under review.

    The data further showed that the investment in Regular Income Certificates posted sharp growth of 41 percent to Rs489.62 billion by June 30, 2019 as compared with Rs347.532 billion in the corresponding month of the last year.

    Further the investment in Behbood Saving Certificates grew to Rs914.46 billion from Rs794 billion.

    The market sources said that the government drive to document the economy and announcement to stop the circulation of Rs40,000 denomination prize bonds encouraged investors to divert the investments into saving schemes.

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  • FBR excludes self-generated goodwill from intangibles

    FBR excludes self-generated goodwill from intangibles

    ISLAMABAD: Federal Board of Revenue (FBR) has said that self-generated goodwill or any adjustment arising on account of account treatment as may be prescribed in rules has been excluded from the definition of intangibles.

    Explaining the changes made to Income Tax Ordinance, 2001 through Finance Act, 2019, the FBR said that the term intangible has been defined in sub-section (11) of section 24.

    The Ordinance defines the intangible as: “any patent, invention, design or model, secret formula or process, copyright, trade mark, scientific or technical knowledge, computer software, motion picture film, export quotas, franchise, licence, intellectual property, or other like property or right, contractual rights and any expenditure that provides an advantage or benefit for a period of more than one year (other than expenditure incurred to acquire a depreciable asset or unimproved land).

    The FBR said that amortization deduction has been allowed under Section 24 for the cost of a person’s intangibles that have a normal useful life exceeding one year and that are wholly or partly used by the person in the tax year in deriving income from business chargeable to tax.

    Amortization deduction for a tax year is computed by dividing the cost of the intangible over normal useful life of the intangible in whole year.

    Prior to the Finance Act, 2019, sub-section (4) of Section 24 stated that where an intangible had a normal useful life of more than ten years or where its useful life was not ascertainable, it was treated to have a normal useful life of 10 years.

    Through the Finance Act, 2019, sub-section (4) of Section 24 has been substituted to the effect that an intangible shall now be amortized over its actual normal useful life which can extend beyond ten years also.

    Further, where the normal useful life is not ascertainable, the intangible shall be treated to have normal useful life of 25 years.

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