Pkrevenue.com

Month: July 2020

  • FBR, provincial authorities discuss single return filing portal

    FBR, provincial authorities discuss single return filing portal

    ISLAMABAD: Federal Board of Revenue (FBR) has discussed with the provinces about common portal for single return filing, a statement said on Monday.

    At the meeting the tax authorities deliberated on ways to facilitate taxpayers under jurisdictions of the federal and the provincial authorities.

    Member IR Operations D. Muhammad Ashfaq Ahmed presided over the meeting. On the occasion, Director Intelligence and Investigation, Lahore, Ahmed Kamal briefed the participants about challenges for launching the single portal. He also presented the suggestions to remove irritants.

    The meeting decided that the provincial tax authorities would sent their recommendations within 15 days to the FBR.

    The participants praised the efforts of the FBR and suggested that all the tax issues should be resolved amicably.

    Member (IR-Operations) FBR appreciated the positive gestures of all the provincial authorities and urged that resolving issues at technical level will pave the way for resolution of common interest at provincial and federal political level.

  • Bank holidays announced for Eid-ul-Adha

    Bank holidays announced for Eid-ul-Adha

    KARACHI: State Bank of Pakistan (SBP) on Monday said that the central bank will remain closed from July 31, 2020 to August 02, 2020 (Friday to Sunday) on occasion of Eid-ul-Adha.

    The commercial banks shall also observe the same holidays announced by the SBP on the occasion of Eid-ul-Adha.

  • Stock market gains 614 points on SBP’s decision for holding MPC meeting

    Stock market gains 614 points on SBP’s decision for holding MPC meeting

    KARACHI: The stock market gained 614 points on Monday owing the decision of the central bank for not to hold regular meeting of monetary policy committee.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,221 points as against 37,608 points showing increase of 614 points.

    Analysts at Arif Habib Limited said that following SBP’s decision to defer Monetary Policy for next 2 months, gave banking scrips the much needed impetus to rally.

    Anticipation of further rate cut died with SBP’s decision and investors view this decision as a signal of interest rate bottoming out.

    Banking sector scrips, especially HBL rallied and traded near upper circuit after posting significant earnings last Friday.

    UBL is scheduled to post financial results in the first week of August, which gave another reason for the banks to perform.

    Besides Banks, Cement sector rebounded after adjusting to selling pressure in the outgoing week.

    Resultantly, Index posted gains of 684 points and closed the session +614 points. Technology sector led the volumes with 39.4 million shares, followed by Banks (39.1 million) and Cable (30.2 million).

    Among scrips, PAEL topped the volumes with 28.9 million shares, followed by TRG (20 million) and PRL (18.4 million).

    Sectors contributing to the performance include Banks (+283 points), Cement (+75 points), Technology (+47 points), E&P (+45 points) Fertilizer (+45 points).

    Volumes increased from 266.5 million shares to 288.1 million shares (+8 percent DoD). Average traded value increased by 24 percent to reach US$ 79.5 million as against US$ 64 million.

    Stocks that contributed significantly to the volumes include PAEL, TRG, PRL, MLCF and FFL, which formed 31 percent of total volumes.

    Stocks that contributed positively to the index include HBL (+98 points), BAHL (+51 points), LUCK (+39 points), MEBL (+36 points) and TRG (+30 points). Stocks that contributed negatively include DAWH (-10 points), ATLH (-4 points), MUREB (-3 points), KAPCO (-2 points), and ICI (-2 points).

  • Rupee gains 39 paisas on improved inflows

    Rupee gains 39 paisas on improved inflows

    KARACHI: The Pak Rupee gained 39 paisas against dollar on Monday owing to sufficient inflows of workers remittances and export receipts.

    The rupee ended Rs166.87 to the dollar from last Friday’s closing of Rs167.26 in interbank foreign exchange market.

    Currency experts said that the inflows of workers remittances and export receipts were more than the demand for import payments.

    The workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

  • FBR empowered to send electronic notice, decisions to all sales tax registered persons

    FBR empowered to send electronic notice, decisions to all sales tax registered persons

    KARACHI: Federal Board of Revenue (FBR) has been authorized to serve electronic notice and decision as legal document to sales tax registered persons.

    In this regard an amendment has been made to Section 56 of Sales Tax Act, 1990 through Finance Act, 2020.

    Prior to amendment the FBR was empowered to send electronically through email or to the e-folder maintained for the purpose of e-filing of sales tax-cum-Federal Excise returns by the limited companies, both public and private.

    However, through the amendment the FBR has been empowered to send electronic notice or decision to all registered persons.

    The serving of electronic notices by the FBR was legalized through Finance Act, 2017.

    The section 56 after the amendment shall be:

    “Section 56: Service of orders; decisions etc. – (1) subject to this Act , any notice, order or requisition required to be served on a resident individual, other than in a representative capacity for the purposes of this Act shall be treated as properly served on the individual if –

    (a) personally served on the individual or, in the case of an individual under a legal disability or a non-residents individual the representative of the individual;

    (b) sent by register post or courier service specified in clause (b) of sub-section (2) or to the individual’s usual or last known address in Pakistan;

    (c) served on the individual in the manner prescribed for service of a summons under the code of civil procedure, 1908(Act V of 1908); or

    (d) sent electronically through email or to the e-folder maintained for the purpose of e-filing of sales tax-cum-Federal excise returns by registered person.

    (2) Subject to this Act, any notice order or requisition required to be served on any person, other than a resident individual to whom sub-section (1)applies, for the purposes of this Act, shall be treated as properly served on person if –

    (a) personally served on the representative of the person;

    (b) sent by registered post or courier service to the person’s registered office or address for service of notices under this Act, in Pakistan or where the person does not have such office or address, the notice is sent by registered [Post to any office or place of business of the person in Pakistan;

    (c) served on the Person in the manner prescribed for service of a summons under the code of civil procedure, 1908(Act V of 1908); or

    (d) sent electronically through email or to the e-folder maintained for the purpose of e-filing of sales tax-cum-Federal excise returns by registered person.

    (3) Where an association of persons is dissolved, any notice, order or requisition required to be served under this Act, on the association or a member of the association may be served on any person who was the principal officer or a member of the association immediately before such dissolution.

    (4) Where, business stands discontinued, any notice, order or requisition required to be served under this Act, on the person discontinuing the business may be served on the person personally or on any individual who was the person’s representative at the time of discontinuance.

    (5) The validity of service of a notice under this Act shall not be called into question after the notice has been complied with in any manner.“

  • Customs Anti-Smuggling announces auction of used vehicles on July 27

    Customs Anti-Smuggling announces auction of used vehicles on July 27

    KARACHI: Anti-Smuggling Organization (ASO) of Pakistan Customs announced auction of used vehicles on July 27, 2020 at ASO Headquarter, NMB Wharf, Ghass Bandar, East Wharf, Karachi.

    Following vehicles to be presented for the auction:

    01. Toyota Lexus Car, Reg No. UC-868, Model 2006, 3485CC, Chassis No. JTHBG 963905034702

    02. Toyota Harrier Jeep, Reg. No. JAA-454, Model 1998, 2999CC, Chassis No. MCU-10-0013510

    03. Toyota Mark-II Saloon Car, Reg. No. BBL-708, Model 2000, 1800 HP, Chassis No. JZX110-6000922

    04. Toyota Land Cruiser Jeep (White), Reg. No. LZN-888, Model 1999, 4663CC, Chassis No. UZJ 100-0081129

    05. Mercedes Benz Saloon Car, Reg. No. # AB 1001, Chassis No. WDB1240312B476728

    06. Toyota Hilux Surf Jeep, Reg. No. UU-691, Model 1992, 240CC, Chassis No. LN130-7022502.

    07. Toyota Mark-X Car, Reg. No. AQD 567, Model 2006, 2449CC, Chassis No. GRX120-3018594

    08. Mercedes Saloon Car, Reg. ZA-030 (Islamabad), Model 2000, 3200CC, Chassis No. WDB1704652F205019

    09. BMW Car (735i), Reg No. YG-455 (Islamabad), Model 2003 (Black), Chassis No. WBAGL42050DD81475

    10. Toyota Mark-X Car, Reg. Fake-SP-046-A, Model 2005, 2500CC, Chassis No. GRX120-3006864

    11. Mercedes Benz Car S-600, Reg. No. IDM-5885, Model 1992, Color Black, 3000CC, Chassis No. WDB-1400572A420288

    12. Toyota Mark-X, Reg. No. AEH-764, Model 2013, 2499CC, Chassis No. GRX-130-6077002

    13. Honda Civic Saloon Car, Reg. No. BEE 563, Model 2010, Chassis No. FD3-1006033.

  • FBR to get CNIC details of unregistered persons making purchases above Rs100,000

    FBR to get CNIC details of unregistered persons making purchases above Rs100,000

    ISLAMABAD: Federal Board of Revenue (FBR) will get CNIC details of unregistered persons making purchases above Rs100,000 through monthly sales tax return for July 2020 to be filed by registered persons in August 2020.

    The registered persons are required to provide details of all those unregistered persons who made purchases above Rs100,000. The information of CNIC of unregistered persons should be provided through sales tax return for the month of July 2020 in August 2020.

    Through Finance Act, 2019 the government made it mandatory for sales tax registered persons to provide information of unregistered persons including their CNICs, names and addresses on making supplies above Rs50,000.

    However, due to difficulties in implementation the condition was applied from August 2019. But due to dispute between FBR and retailers the implementation of this condition was remained inapplicable.

    Through Finance Act, 2020 the limit of purchases by unregistered persons has been enhanced to Rs100,000 effective from July 01, 2020.

    Section 23 of Sales Tax Act, 1990 requires the registered persons to provide the details of unregistered persons while issuing tax invoice.

    “Section 23. Tax Invoices.– (1) A registered person making a taxable supply shall issue a serially numbered tax invoice at the time of supply of goods containing the following particulars, in Urdu or English language, namely: –

    (a) name, address and registration number of the supplier;

    (b) name, address and registration, number of the recipient and NIC or NTN of the unregistered person, as the case may be, excluding supplies made by a retailer where the transaction value inclusive of sales tax amount does not exceed rupees fifty thousand, if sale is being made to an ordinary consumer.

    Explanation. – For the purpose of this clause, ordinary consumer means a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing:

    Provided that the condition of NIC or NTN shall be effective from 1st August, 2019;

    (c) date of issue of invoice;

    (d) description including count, denier and construction in case of textile yarn and fabric, and quantity of goods;

    (e) value exclusive of tax;

    (f) amount of sales tax; and

    (ff)

    (g) value inclusive of tax:

    Provided that the Board may, by notification in the official Gazette, specify such modified invoices for different persons or classes of persons;

    Provided further that not more than one tax invoice shall be issued for a taxable supply:

    Provided also that if it is subsequently proved that CNIC provided by the purchaser was not correct, liability of tax or penalty shall not arise against the seller, in case of sale made in good faith.

    (2) No person other than a registered person or a person paying retail tax shall issue an invoice under this section.

    (3) A registered person making a taxable supply may, subject to such conditions, restrictions and limitations as the Board may, by notification in the official Gazette, specify, issue invoices to another registered person electronically and to the Board as well as to the Commissioner, as may be specified.

    (4) The Board may, by notification in the Official Gazette, prescribe the manner and procedure for regulating the issuance and authentication of tax invoices.”

  • FBR grants Rs2.42 billion as income tax concession to teachers, researchers

    FBR grants Rs2.42 billion as income tax concession to teachers, researchers

    ISLAMABAD: The Federal Board of Revenue (FBR) has provided significant tax exemptions amounting to Rs2.42 billion on the income of teachers and researchers during the tax year 2019–2020.

    (more…)
  • FBR stops public auction of confiscated foreign origin cigarettes

    FBR stops public auction of confiscated foreign origin cigarettes

    ISLAMABAD: Federal Board of Revenue (FBR) has stopped public auction of foreign origin smuggled cigarettes as those goods do not comply with the national health regulations.

    In a statement issued on Saturday, the FBR clarified that the auction of confiscated smuggled cigarettes of foreign origin have been stopped which were earlier decided to hold by field formations.

    The decision to stop the auction of confiscated cigarettes of foreign origin has been taken as the packing of the aforementioned cigarettes do not comply with the national health regulations, FBR added.

    As per conditions imposed by the Ministry of National Health Services, Regulations and Coordination, warning of serious health hazards must be printed both graphically as well as textually in Urdu language for bewaring the general public as laid down in SROs 127(KE)/2017 & 128(KE)/2017 both dated 19-12-2017 and SRO DE/2019 dated 22-1-2019.

    In order to avoid carrying out any inadvertent act or procedure that is inconsistent with the national health laws and regulations, confiscated cigarettes of foreign origin have been excluded from the public auction through an amendment issued vide notification N. SRO 638(I)/2020 dated 23-7-2020 in the relevant provisions of the Customs Rules, 2001 (Rule 58(3) in Chapter V).

    FBR further added that the confiscated cigarettes shall not be put to auction and shall be destroyed in the manner as prescribed by Board.

  • Weekly Review: market likely maintain buoyancy

    Weekly Review: market likely maintain buoyancy

    KARACHI: The stock market likely to maintain upward trend as many corporate entities set to declare better results.

    Analysts at Arif Habib said that with commencement of the result season certain sectors / scrips may come under limelight in the upcoming week.

    Although pre-Eid jitters cannot be ruled out amid profit-taking at current levels. However, funds continue to flow in the bourse and economic activity shows signs of revival.

    Hence, our long term stance on the market remains positive.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.9x (2021) compared to Asia Pac regional average of 13.1x and while offering DY of ~6.7 percent versus ~2.7 percent offered by the region.

    The outgoing session marks end of a fifth consecutive positive week at the KSE-100 index.

    Although the rally lost stream mid-week amid profit taking and selling pressure from individuals, the bourse moved up 276 points WoW to close at 37,608points.

    To recall, sentiments have been rejoiced by several rate cuts by the SBP (625bps in total) which have once again brought equities to the forefront as the preferred asset class, while improvement in the domestic COVID-19 recovery rate, end of lockdown as well as reinstatement of pre-corona market hours aided volumes and attracted investment in the market.

    Sector-wise positive contributions came from i) Commercial Banks (253 points), ii) Power generation and distribution (76 points), iii) Automobile Assembler (31 points), iv) Textile composite (28 points), and v) Technology and communication (17 points).

    Whereas negative contributions came from i) Cements (60 points), Oil & Gas Exploration Companies (38 points), and Chemical (19 points). Scrip-wise positive contributions were led by HBL (128 points), MCB (64 points), HUBC (58 points), BAHL (35 points), and MTL (31 points).

    Foreign selling continued this week clocking-in at USD 9.3 million compared to a net sell of USD 27.4 million last week.

    Selling was witnessed in Commercial Banks (USD 2.9 million) and E&P (USD 1.7 million). On the domestic front, major buying was reported by Companies (USD 7.3 million and Insurance Companies (USD 7.0 million).

    Average volumes settled at 413 million shares (down by 3 percent WoW) while average value traded clocked-in at USD 97 million (down by 2 percent WoW).