Pkrevenue.com

Day: August 18, 2020

  • FBR decides action against retailers for avoiding mandatory integration

    FBR decides action against retailers for avoiding mandatory integration

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to take action against retailers having huge turnovers for not complying with mandatory integration with the online system of the tax authority.

    In this regard the FBR on Tuesday directed the retailers, who are required to integrate their sales and purchases under Sales Tax Act, 1990, to link their invoicing system by August 31, 2020.

    The FBR has explained that all retailers who have the network of chain stores throughout Pakistan, located in air-conditioned big shopping malls or plazas and their cumulative electricity bill during the immediately preceding twelve consecutive months exceeds twelve hundred thousand rupees and they are engaged in bulk import and supply of consumer good on wholesale basis to the retailers as well as on retail basis in to the consumer and their shop’s size measures one thousand square feet in area or more must integrate their retail outlets with the FBR’s computerized system for real time reporting of sales.

    FBR has warned that the last date for such integration is August 31, 2020 and afterwards those who failed to integrate would be imposed a penalty up to rupees one million and if the offence continued, the business premises of such retailer shall be sealed.

  • Stock market gains 62 points in mixed trading

    Stock market gains 62 points in mixed trading

    KARACHI: The stock market has witnessed an increase of 62 points on Tuesday in mixed trading activities during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,184 points as against 40,123 points showing an increase of 62 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note with +224 points and added a total of +312 points on the index.

    E&P and Cement sectors largely played a major role in positive activity. Banks and Fertilizer sectors, on the other hand, contributed to selling pressure on the index.

    International crude oil prices have been stable for quite some time now, which have helped Investors take a long term view on E&P stocks thereby giving continual ascent to the underlying scrips.

    Cement sector stocks performed on the back of a stay that one of the Cement companies obtained against the probe on a recent increase in Cement prices.

    Cement sector led the volumes on the bourse with 83 million shares, followed by Power (48.8 million) and O&GMCs (45.8 million). Among scrips, PIBTL topped the volumes with 35.6 million, followed by PRL (27.5 million) and DGKC (26.7 million).

    Sectors contributing to the performance include Cement (+120 points), E&P (+21 points), Pharma (+12 points), Banks (-64 points), Fertilizer (-18 points) and Technology (-17 points).

    Volumes declined from 522.7 million shares to 458.8 million shares (-12 percent DoD). Average traded value also declined by 8 percent to reach US$ 123.2 million as agsinst US$ 133.7 million.

    Stocks that contributed significantly to the volumes include PIBTL, PRL, DGKC, MLCF and HASCOL, which formed 29 percent of total volumes.

    Stocks that contributed positively to the index include LUCK (+33 points), DGKC (+31 points), CHCC (+23 points), OGDC (+14 points) and BAHL (+14 points). Stocks that contributed negatively include UBL (-28 points), HBL (-25 points), TRG (-18 points), PSO (-15 points) and ENGRO (-11 points).

  • Rupee eases amid record monthly inflows of remittances

    Rupee eases amid record monthly inflows of remittances

    KARACHI: The Pak Rupee ended down by two paisas against dollar on Tuesday amid record remittances received by the central bank.

    The rupee ended Rs168.19 to the dollar from previous day’s closing of Rs168.17 in interbank foreign exchange market.

    Currency experts said that reports of record remittances received by the State Bank of Pakistan (SBP) helped the rupee to avoid significant depreciation against the foreign currency.

    The inflow of workers’ remittances hit monthly record high of $2.77 billion in July 2020.

    In July, workers’ remittances rose to US $ 2.768 billion. “This is the highest ever level of remittances in a single month in Pakistan,” according to the SBP.

    In terms of growth, remittances increased by 36.5 percent over July 2019 (y/y) and 12.2 percent over June 2020 (m/m). Given the impact of Covid-19 globally, this increase in worker’s remittances is encouraging.

  • FBR updates withholding tax rates on sale, purchase of immovable properties

    FBR updates withholding tax rates on sale, purchase of immovable properties

    ISLAMABAD: Federal Board of Revenue (FBR) has updated the withholding tax rates on sale and purchase of immovable properties for tax year 2021.

    The FBR issued withholding tax card 2020-2021 (updated up to June 30, 2020) incorporating amendment to Income Tax Ordinance, 2001 through Finance Act, 2020.

    Under Section 236C of Income Tax Ordinance, 2001 the withholding tax is to be collected on seller of immovable property.

    Every person registering, recording or attesting or transfer including local authorities, housing authorities, housing society co-operative society and registrar or properties shall collect withholding tax from seller of immoveable property at the time of registering, recording or attesting the transfer.

    The tax rate shall be one percent of the gross amount of the consideration received. In case of person not appearing on the Active Taxpayers list (ATL) the tax rate shall be two percent of the gross amount of the consideration received.

    The withholding tax shall be minimum tax if property is acquired and disposed off within the same tax year; otherwise the tax shall be adjustable.

    Advance tax, under this section, is not be collected if the immovable property is held for a period exceeding four years.

    Under Section 236K of Income Tax Ordinance, 2001 the withholding tax shall be collected from purchaser of immovable property.

    Under Section 236K (1) every person registering, recording or attesting or transfer including local authorities, housing authorities, housing society, co-operative society and registrar or properties shall deduct/collect withholding tax from the purchaser of immovable property at the time of registering, recording or attesting the transfer.

    The withholding tax rate shall be one percent of the fair market value. In case the person is not on the ATL the tax rate shall be two percent of the fair market value.

    The withheld tax shall be adjustable against total payable tax liability.

    Section 236K (3) of the Ordinance deals with advance tax on payment of installment in respect of purchase of allotment of immovable property where transfer is to be effected after making payment of all installments.

    Any person responsible for collection of payment in installment shall deduct/collect from the purchaser or allottee of the immovable property at the time of payment of installment.

    The tax rate shall be one percent of the fair market value. In case the person is not on the ATL the tax shall be two percent of the fair market value.

    The tax shall be adjustable against total tax liability.