Day: October 14, 2019

Payment for transactions above Rs50,000 must be made through crossed cheque

KARACHI: Federal Board of Revenue (FBR) has made it mandatory for buyers to make payment above Rs50,000 through crossed cheque or banking instruments ensuring transfer of payment to seller’s account.

The FBR issued Sales Tax Act, 1990 updated till June 30, 2019 incorporating amendments brought through Finance Act, 2019. Under Section 73 of the Act, the FBR made it mandatory for buyers to make payment for any transaction above Rs50,000 through crossed cheque or through any banking instrument.

Section 73: Certain transactions not admissible

Sub-Section (1): Notwithstanding anything contained in this Act or any other law for the time being in force, payment of the amount for a transaction exceeding value of fifty thousand rupees, excluding payment against a utility bill, shall be made by a crossed cheque drawn on a bank or by crossed bank draft or crossed pay order or any other crossed banking instrument showing transfer of the amount of the sales tax invoice in favour of the supplier from the business bank account of the buyer:

Provided that online transfer of payment from the business account of buyer to the business account of supplier as well as payments through credit card shall be treated as transactions through the banking channel, subject to the condition that such transactions are verifiable from the bank statements of the respective buyer and the supplier.

Sub-Section (2): The buyer shall not be entitled to claim input tax credit, adjustment or deduction, or refund, repayment or draw-back or zero-rating of tax under this Act if payment for the amount is made otherwise than in the manner prescribed in sub-section (1), provided that payment in case of a transaction on credit is so transferred within one hundred and eighty days of issuance of the tax invoice.

Sub-Section (3): The amount transferred in terms of this section shall be deposited in the business bank account of the supplier, otherwise the supplier shall not be entitled to claim input tax credit, adjustment or deduction, or refund, repayment or draw-back or zero-rating of tax under this Act.

Explanation— For the purpose of this section, the term “business bank account” shall mean a bank account utilized by the registered person for business transactions, declared to the Commissioner in whose jurisdiction he is registered 1[through Form STR-1 or change of particulars in registration database.

October 14, 2019
Zong partners with Enfrashare to expand 4G network

KARACHI: Zong 4G, Pakistan’s leading telecommunication network, has entered into a strategic partnership with Enfrashare Private Limited, a leading connectivity infrastructure provider.

The partnership will support Zong 4G’s expansion of its largest 4G network of country to provide better coverage and an unrivaled subscriber experience, said a statement on Monday.

With more than 12,000 4G sites across Pakistan, Zong 4G is the country’s leading 4G network with over 13 Million 4G subscribers.

The company is at the forefront of digital revolution, empowering people from all walks of life to experience best-in-class digital experience.

Enfrashare, with its expertise and investment in connectivity infrastructure, allows Mobile Operators to reduce the cost of access to consumers.

Owned by one of the largest groups in Pakistan (Engro Corp), Enfrashare was formed with the vision to help enhance digital connectivity throughout the country. It aims to engage with all stakeholders in telecom’s ecosystem in order to realize their goal of digitizing the nation.

Commenting on the partnership Zong 4G’s Spokesperson said: “Zong 4G is committed in its ambition of building the digital Ecosystem of Pakistan. In a bid to further augment the user experience, Zong 4G has partnered with Enfrashare to further expand its network outreach.

“Our customers experience is our first priority, and through this partnership our customers will benefit directly from our state-of-the-art mobile network for a seamless digital experience.”

Speaking at the ceremony, Rehan Hassan from Enfrashare, stated, “Enfrashare firmly believes that connectivity is a basic human need, it is the conduit that enables social and financial inclusion.

“We are very proud of what we have accomplished in a short span of time, since our inception last year. This agreement allows us to work with one of the most respected operators in the country to provide enhanced solutions.

“Enfrashare’s vision goes beyond just towers to enable broader connectivity, and encompasses all necessary components including towers, fiber, energy and more. This partnership marks the beginning of a new journey, where the two key members of telecom’s ecosystem will bring together their expertise and enhance the country’s connectivity.”

Zong 4G’scollaboration with Enfrashare affirms both companies’ vision and commitment to enhance the connectivity infrastructure landscape in the country as well as complements the ambition of building a Digital Pakistan.

October 14, 2019
Provisional release of offended imported goods

KARACHI: The collector of customs has been empowered to allow provisional release of imported goods, on which any offence is detected, against duty and payment and submission of bank guarantee for penalty amount.

The Federal Board of Revenue (FBR) issued Customs Act, 1969 updated till June 30, 2019 incorporating the changes brought through Finance Act, 2019.

According to the Customs Act, 1969, where any offence is detected in respect of imported goods which are not liable to confiscation or needed for evidence at a later stage, the Collector of Customs may, on written request of owner of the goods, allow release of the same on payment of duty, taxes or other charges and furnishing bank guarantee or pay order against the amount of any penalty or fine which may be imposed on such goods.

The FBR also explained the clearance for home consumption under Section 83 of the Act.

It said that when the owner of any goods entered for home-consumption and assessed under section 80 or 81 has paid the import duty and other charges, if any, in respect of the same the appropriate officer, if he is satisfied that the import of the goods is not prohibited or in breach of any restrictions or conditions applying to the import of such goods, may make an order for the clearance of the same:

Provided that, at customs-stations where the Customs Computerized System is operational the system may clear the goods through system generated clearance documents.

(2) Where the owner fails to pay import duty and other charges within ten days from the date on which the same has been assessed under sections 80, or 81, he shall be liable to pay surcharge at the rate of KIBOR plus three percent on import duty and other charges payable on such goods.

October 14, 2019
Stock market ends down by 289 points amid narrow band trading

KARACHI: The stock market ended down by 289 points on Monday as market traded in narrow band.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,186 points as against 34,476 points showing a decline of 289 points.

Analysts at Arif Habib Limited said that index was traded in a narrow band for most part of the day but started taking shape (negative direction) by the end of session.

During the session, the market see-sawed between +222 points and -351 points.

Among the drivers that affected market activity today were the implementation of higher brokerage commission, which caused institutional and individual investors largely at bay, and ongoing meeting with FATF, where Pakistan is expected to avoid set back.

International crude prices also dipped during the session, which had negative impact on the E&P stocks and neutral to negative expectation on financial results of Refineries and OMCs kept selling pressure on such stocks.

Technology sector led the volumes table with 30.8 million shares, followed by Cement (17.7 million) and Chemical (17.1 million). Among scrips, WTL led the volumes with 14.3 million shares followed by TRG (11.6 million) and LOTCHEM (9.7 million).

Sectors contributing to the performance include Banks (-133 points), Cement (-52 points), Fertilizer (-30 points), Pharma (-21 points), Textile (-20 points) and E&P (+21 points).

Volumes fell from 287.1 million shares to 137.9 million shares (-52 percent DoD).

Average traded value also declined by 55 percent to reach US$ 30.8 million as against US$ 67.7 million.

Stocks that contributed significantly to the volumes include WTL, TRG, LOTCHEM, UNITY and FCCL, which formed 38 percent of total volumes.

Stocks that contributed positively include MARI (+23 points), DAWH (+18 points), OGDC (+16 points), HUBC (+8 points) and COLG (+6 points).

Stocks that contributed negatively include HBL (-42 points), LUCK (-40 points), MCB (-26 points), UBL (-19 points), and SEARL (-17 points).

October 14, 2019
Rupee ends firmer in interbank

KARACHI: The Pak Rupee ended firmer against dollar on Monday owing to lackluster demand after significant decline in trade deficit and current account deficit of the country.

The rupee ended at Rs156.08 to the dollar from last Friday’s closing of Rs156.07 in interbank foreign exchange market.

Currency dealers said that the rupee had maintained levels after sharp decline in import bill and current account deficit during the first quarter of the current fiscal year.

The foreign currency was initiated in the range of Rs156.10 and Rs156.20. The market recorded day high of Rs156.00 and low of Rs156.00 and closed at Rs156.08.

The exchange rate in open market however witnessed increase in rupee value. The buying and selling of rupee was recorded at Rs155.70/Rs156.20 from last Friday’s closing of Rs155.80 and low of Rs156.30 in cash ready market.

October 14, 2019