Day: November 6, 2020

SECP extends coronavirus contingency plan for corporate meetings

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has extended the applicability of coronavirus related contingency planning for general meetings of shareholders.

In a notification issued on Friday, the SECP extended the applicability of its circular No. 5 of 2020 dated March 17, 2020 to annual general meetings and extra-ordinary general meetings to be held up till January 31, 2021.

In its circular no. 5 dated March 17, 2020, the SECP issued following coronavirus contingency planning for annual general meetings of shareholders:

In light of the threat posed by evolving COVID-19 situation (coronavirus) pandemic and to protect the wellbeing of shareholders, the SECP issued the following directives:

i. In order to avoid large gathering at one place, the companies shall consider provision of video link facilities, webinar or other electronic means.

ii. The companies shall also provide email, WhatsApp number, mobile number or any other electronic mean through which shareholders can provide comments/suggestions for the proposed agenda items of the AGM.

iii. The companies shall disseminate the aforesaid details to the shareholders through its website, Pakistan Stock Exchange and addendum/notice in newspapers along with complete information necessary to enable them to access the facility. Any change in venue shall also be communicated.

iv. It will be responsibility of the company secretary and chairman of the meeting that comments / suggestions of the shareholders should be discussed in the meeting and made part of the minutes of the meeting.

v. Maximum participation of shareholders be ensured via electronic means and by requesting members to consolidate their attendance through proxies, while honoring quorum provisions.

vi. The companies shall consider protective measures during the meeting i.e. provision of hand sanitizers, masks and distant seating etc.

vii. For special business voting through postal ballot shall be considered.

viii. With reference to Circular No. 02/2018 dated February 09, 2018 it is re-emphasized that the provision of gifts/incentive in any form to shareholders at or in connection to general meetings is strictly prohibited under Section 185 of the Act.

November 6, 2020
Sales tax rates for construction services updated

KARACHI: Sindh Revenue Board (SRB) has issued updated rates of sales tax on construction services. The SRB explained the rate of sales tax at normal, concessionary and exempted on construction services.

The SRB issued working tariff updated up to November 01, 2020.

Following are the rate of sales tax on construction services:

The SRB said that a general rate of 13 percent is applicable on the construction services.

However, a reduced rate at 8 percent is also available on following conditions:

(i) The benefit of this reduced rate is not available to persons, engaged in providing or rendering the construction services, who elect or opt to pay the statutory rate of tax at 13 per cent under the Special Procedure prescribed by the Board and avail of the input tax credit/adjustment facility as prescribed in the Act and rules

(ii) Input tax credit/adjustment shall not be admissible.

Another reduced rate at 5 percent is also available on following conditions:

(i) Construction service in relation to Government Civil Works for which expenditure is paid out of the expenditure budget of the Federal Government or the Local Government or the Cantonment Board.

(ii) Input tax credit/adjustment shall not be admissible.

The SRB said that sales tax on service is exempted on construction services related to:

(i) Construction work undertaken by a person whose annual turnover does not exceed 4 million rupees in a financial year;

(ii) Construction and development of EPZ, SEZ and diplomatic and counselor buildings; and

(iii) Construction of an independent private residential house, other than residential unit covered by tariff headings 9807.0000 or 9814.3000, having total covered area not exceeding 10,000 square feet.

November 6, 2020
FBR issues procedure for oversight committee to settle cases

ISLAMABAD: Federal Board of Revenue (FBR) on Friday issued procedure for assessment oversight committee for resolving cases of settlement filed against assessment notices.

The FBR issued SRO 1184(I)/2020 to notify the rules. Previously, the FBR issued draft rules through SRO 957(I)/2020 dated October 02, 2020 to seek input from stakeholders.

The FBR introduced Rule 231CA to the Income Tax Rules, 2002 for procedures for assessment oversight committee that shall apply to all cases of settlement filed under Section 122D (agreed assessment in certain cases) of Income Tax Ordinance, 2001.

As per the rule, a settlement application shall be made electronically by the applicant in person or by his authorized representative, under Section 122D for agreed assessment of the committee on IRS web portal.

A settlement application shall be preferred to the committee after the date of service of the notice issued under sub section (9) of Section 122 of the Ordinance and before finalization of assessment.

The commissioner shall not conclude assessment proceedings under section 122 if an application, made against the notice issued under sub section (9) of section 122, lies pending before the committee.

The committee, after examination of the contents of an application submitted by an applicant and facts stated therein and on scrutiny of requisitioned record, if any, shall afford opportunity of being heard to the applicant in writing.

The committee shall finalize the applications filed under section 122D of the Ordinance within thirty days of receipt of application or within an extended period of sixty days, for reasons to be recorded in writing by the committee.

November 6, 2020
Share market sheds 340 points on profit taking

Karachi, Pakistan – The share market experienced a sharp decline on Friday, shedding 340 points due to selling pressure across various sectors.
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November 6, 2020
Rupee gains 37 paisas; dollar eases to Rs159.09

KARACHI: The Pakistani Rupee gained 37 paisas against the US dollar on Friday, closing at Rs159.09 from the previous day’s rate of Rs159.46 in the interbank foreign exchange market. This appreciation was attributed to lower imports and higher inflows of export receipts and workers’ remittances, according to currency dealers.
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November 6, 2020
FBR issues rules to finalize return forms by January 31

ISLAMABAD: Federal Board of Revenue (FBR) on Friday amended rules under which annual income tax return form will be available on January 31 every year following the financial year to which the return relates.

The FBR issued SRO 1185(I)/2020 to amend Income Tax Rules 2002. Previously, the FBR issued SRO 1041(I)/2020 dated October 13, 2020 to notify draft rules and invited suggestions from the stakeholders.

The FBR introduced Rule 34A for making it mandatory that the annual income tax return form shall be available by January 31 every on IRIS portal and ready for filing by taxpayers.

The text of the new rule 34A is as:

34A. Time limit for notifying income tax return form:

(1) This rule shall apply for the purpose of setting timelines in respect of various steps involved in notifying income tax return forms for a tax year.

(2) The return form specified in sub rule (2) of rule 34 shall be notified for suggestions from all persons likely to be affected thereby on or before the first day of December of the financial year following the financial year to which the return relates by observing following timelines:

(a) Inland Revenue Policy Wing shall identify the legal amendments to be incorporated in income tax return forms by thirty-first day of August of the financial year following the financial year to which the return relates;

(b) preparation of change request form (CRF) shall be finalized by Inland Revenue Policy Wing and Information Technology Wing, in consultation with PRAL, by the fifteenth day of September of the financial year following the financial year to which the return relates;

(c) analysis and scrutiny of the change request form (CRF) by Chief Income Tax Policy and Chief Business Domain Team shall be conducted by sixteenth day of September of the financial year following the financial year to which the return relates and the same shall be submitted to Member Inland Revenue Policy for approval on the same day;

(d) PRAL shall complete configuration and development of the approved CRF by thirty first day of October of the financial year following the financial year to which the return relates; and

(e) User Acceptance Test (UAT) of the amended return forms on testing environment shall be finalized by Inland Revenue Policy Wing and Information Technology Wing, in consultation with PRAL, by fifteenth day of November of the financial year following the financial year to which the return relates and the same shall be submitted to Member Inland Revenue Policy for approval on the same day.

(3) The return form shall be remain available on the portal for suggestion till seventh day of January of the financial year following the financial year to which the return relates.

(4) The final return form shall be notified on or before the thirty first day of January of the financial year following the financial year to which the return relates by observing following timelines:

(a) Inland Revenue Policy Wing and Information Technology Wing shall review the suggestions received from stakeholders by twelfth day of January of the financial year following the financial year to which the return relates;

(b) a new change request form, if required, shall be finalized by Inland Revenue Policy Wing and Information Technology Wing, in consultation with PRAL, by 15^th day of January of the financial year following the financial year to which the return relates and the same shall be approved by Member Inland Revenue;

(c) PRAL shall complete configuration and development of the approved CRF by 20^th day of January of the financial year following the financial year to which the return relates;

(d) User Acceptance Test (UAT) of the final return forms on testing environment shall be finalized by Inland Revenue Policy Wing and Information Technology Wing, in consultation with PRAL, by 25^th day of January of the financial year following the financial year to which the return relates and the same shall be submitted to Member Inland Revenue Policy for approval;

(e) final income tax return forms shall be available on IRIS by the thirty day of January of the financial year following the financial year to which the return relates;

(f) in case, any further amendments are made in the financial year to which the return relates that have an impact on the finally notified income tax return forms referred to a clause (e), such amendments shall also be incorporated accordingly; and

(g) notwithstanding anything contained in this rule, the time so specified may, if requested by the Member Inland Revenue Policy, be extended by the Board to such extent and subject to such conditions and limitations as it may deep proper.

November 6, 2020
Customs launches pilot project of authorized economic operator

KARACHI: Pakistan Customs has launched a pilot project of Authorized Economic Operator (AEO) to facilitate trade and industry, a statement said on Friday.
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November 6, 2020