Pkrevenue.com

Day: January 29, 2021

  • Salary persons require retaining tax deduction certificate for six years

    Salary persons require retaining tax deduction certificate for six years

    ISLAMABAD: A person deriving income salary is required to retain salary certificate indicating amount of salary and tax deducted for six years, sources said on Friday.

    The sources said that the requirement of retaining record for six years is mandatory under income tax laws.

    Similarly taxpayers deriving income from property are required to retain following records for six years:

    a. Tenancy agreement, if executed;

    b. Tenancy termination agreement, if executed;

    c. Receipt for amount of rent received; and

    d. Evidence of deductions claimed in respect of premium paid to insure the building, local rate, tax, charge or cess, ground rent, profit/interest or share in rent on money borrowed, expenditure on collecting the rent, legal services and unpaid rent.

    In case taxpayers deriving income from capital gains, the following documents shall be retained for six years:

    a. Evidence of cost of acquiring the capital assets;

    b. Evidence of deduction for any other costs claimed; and

    c. Evidence in respect of consideration received on disposal of the capital asset.

    In case taxpayers deriving income from other sources are required to keep following records for six years:

    a. Dividend; dividend warrants.

    b. Royalty; Royalty agreement

    c. Profit on debt: Evidence and detail of profit yielding debt; Evidence of profit on debt and tax deducted thereon, like certificate in the prescribed form or bank account statement; and evidence of Zakat deducted, if any.

    d. Ground rent, rent from the sub-lease or land or building, income from the lease of any building together with plant or machinery and consideration for vacating the possession of a building or part thereof: Lease agreement; and lease termination agreement.

    e. Annuity or pension: evidence of amount received.

    f. Prize money on bond, winning from a raffle, lottery or cross word puzzle: Evidence of income and tax deducted thereon, like certificate in the prescribed form.

    g. Provision use or exploitation of property: agreement

    h. Loan, advance, deposit or gift: evidence of model of receipt of a loan, advance, deposit or gift i.e. by a crossed cheque or through a banking channel.

    i. General: Evidence of deduction for any other expenditure claimed.

  • Share market gains 220 points as sentiments remain bullish

    Share market gains 220 points as sentiments remain bullish

    KARACHI: The share market gained 220 points on Friday as investors were remained positive on the economy.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 46,386 points as against previous day’s closing 46,166 points showing an increase of 220 points.

    Analysts at Arif Habib Limited said that the market ramped another 491 points during the session, closing +220 points.

    Profit booking during the later half of the session brought the index down however, investor sentiment remained bullish.

    Cement sector performed well today, which was on the back of anticipation of better results in the outgoing quarter as well as growth in dispatches.

    Power sector saw KEL leading the volumes with the hint of resolution of dispute between SSGC and KEL.

    Among OMCs, PSO led the pack despite deferment of ECC decision on OMC dealer margins. Expectation of quarterly results largely drove the sentiments today, which was the last day of the rollover week as well.

    Among scrips, KEL topped the volumes with 141.5 million shares, followed by SILK (80.5 million) and PRL (62.8 million).  

    Sectors contributing to the performance include Technology (+67 points), Cement (+61 points), Power (+32 points), Inv Banks (+25 points) and Pharma (+25 points).

    Volumes maintained a plateau as yesterday by posting 840 million shares as against 844 million (-0.4 percent DoD).

    Average traded value however, increased by 24 percent DoD to reach US$ 203.6 million as against US$ 163.8 million.

    Stocks that contributed significantly to the volumes include KEL, SILK, PRL, UNITY and BYCO, which formed 42 percent of total volumes.

    Stocks that contributed positively to the index include TRG (+75 points), DGKC (+26 points), DAWH (+24 points), PAKT (+20 points) and INIL (+20 points). Stocks that contributed negatively include MCB (-24 points), FFC (-21 points), HMB (-14 points), UBL (-13 points) and POL (-11 points).

  • Pensioners to undergo biometric verification twice a year; rules amended

    Pensioners to undergo biometric verification twice a year; rules amended

    ISLAMABAD: Pensioners are required to undergo biometric verification twice in a year in order to continue withdrawal of pension amount.

    The Finance Division on Friday issued SRO dated January 28, 2021 to notify amendments in the Federal Treasury Rules.

    As per the amendments, a pensioner drawing pension shall be bound to undergo biometric verification on National Database and Registration Authority (NADRA) system from any branch of a bank maintaining his pension account, every year in the months of March and October or provide a life certificate signed by a person authorized, if he is unable to undergo biometric verification due to incapacitation by bodily illness, infirmity or if his fingerprints do not exist due to old age or a genetic condition.

    Authorities shall obtain declaration yearly from pensioners whose pension is terminable by their marriage or re-marriage and shall be attached to the bills for pension paid for September, however, this requirement shall be dispensed with after attaining by the pensioner the age of sixty years.

    The disbursing officer must take special precautions to prevent imposition and must, at least once a year, receive proof of life or proof of continued existence of the pensioner, through NADRA’s biometric verification at any branch of a bank maintaining his pension account, which shall be conclusive proof of the continued existence of the pensioner.

    “Any pensioner who is incapacitated by bodily illness or infirmity from so going to any branch of a bank for biometric verification or whose finger prints no longer exist due to old age or infirmity or a genetic condition, that pensioner shall give written request for exemption and for that pensioner, the disbursing officer shall allow proof of life through life certificate as conclusive proof of his continued existence.”

    The disbursing officer shall be responsible for any payment wrongly made and in all cases of doubt, he must consult the Accountant General.

    “If a pensioner drawing pension fails to submit a life certificate or fails to undergo NADRA’s biometric verification during the months of March and October or he does not draw his pension for consecutive six months, his account shall become dormant.”

  • FBR’s representation in bogus refunds rejected

    FBR’s representation in bogus refunds rejected

    ISLAMABAD: A representation of Federal Board of Revenue (FBR) has been rejected by the President of Pakistan on Friday that was filed against an order passed by the Federal Tax Ombudsman (FTO) in bogus refund case.

    According to details, President Dr. Arif Alvi rejected the FBR’s representations directing the tax authorities to recover amount of Rs14 million paid in bogus refund claim.

    The President upheld the decision of Federal Tax Ombudsman (FTO) following its suo-moto action against the irregularities committed by the FBR field formations in registering, processing, sanctioning and issuing sales tax refunds to fake refund payments during the period 2012-2013.

    President Alvi in his decision wrote: “it was surprising and shocking that FBR failed to investigate fake claims where refund had already been made in full connivance with FBR officials”.

    Expressing strong displeasure over the scam, he said: “How can we afford not to recover and criminally charge the fraudsters.”

    The President stressed recovery of the embezzled money, saying: “instead of resistance by FBR to the suo-moto action by FTO, they should recover the precious money of the people of Pakistan.”

    It is worth-stating that FBR has filed 74 similar representations with the office of the President against the orders of FTO. Out of 74 representations, 22 cases have been decided while 52 are still awaiting adjudication.

    Furthermore, according to the relevant record, FBR had allowed Rs 875.277 million to be paid to fake RPs, of which a payment of Rs 223.312 Million has already been made.

    The FTO in its verdict, dated April 27, 2020, had directed the Chief Commissioner-Inland Revenue and Corporate Regional Tax Office (RTO), Karachi to investigate and identify the officials involved in registration of fake RPs and initiate disciplinary/criminal action against those found involved and report compliance within 45 days.

    The FTO in its decision further directed FBR to initiate appropriate action including criminal proceedings leading to recovery of amount swindled from public exchequer through claiming inadmissible input tax and bogus refund.

    Instead of implementing the directives of FTO, the FBR challenged its jurisdiction and filed a representation with the President taking plea that it could not issue such orders and rely on interdepartmental correspondence of FBR.

    The President rejected FBR’s representation and made it clear that the body could exercise its power conferred under Section 9(1) of the Federal Tax Ombudsman Ordinance, 2000 to investigate irregularities in the department.

    It is to be mentioned here that the investigations conducted by Directorate General of I&I-IR (Intelligence & Investigation and Inland Revenue), Karachi in case of M/s Z.A. Exports — a fake RP with principal activity as manufacturer of iron and steel — revealed that bogus claims worth Rs 18.519 million were made in tax period 2012-13 against irrelevant invoices.

    The President lauded the Directorate General of I&I-IR (Intelligence & Investigation and Inland Revenue) for issuing Red Alerts and detecting fraudulent activities in FBR, and regretted that the “national exchequer was made to suffer colossal loss of revenue”.

  • Rules notified for consignment clearance at border customs stations

    Rules notified for consignment clearance at border customs stations

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday issued draft rules for the clearance of import and export consignments at border customs stations.

    The FBR issued SRO 103(I)/2021 dated January 25, 2021 to propose a new sub-chapter XVI to Customs Rules, 2001 for clearance of imports and exports at border customs station.

    According to draft rules following are the procedures for clearance of goods at border customs stations:

    A. Imports

    556H. Data entry of import manifest at the time of terminal gate-entry.-

    (1) The person-in-charge of the vehicle carrying imported goods on arrival into Pakistan shall deliver the import manifest in the form as prescribed in these rules to gate-in-officer. On receipt of import manifest, the gate-in-officer shall enter the data of import manifest against the relevant IGM.

    (2) Copies of the import manifest shall be given to the representative of FC and the terminal operator at the zero-line, wherein a terminal operator is functioning.

    556I. Processing of gate-in.- After recording of import manifest information, the gate-in-officer shall process gate-in of the vehicle and goods in the system on real time basis.

    556J. Filing of import goods declaration.- Subsequently the importer or his authorized representative shall file goods declaration against the Index number already generated in the system for prescribed customs processing.

    556K. Release of import cargo.- After completion of customs processing of goods declaration including payment of leviable duty and taxes and on receiving authorization from the Pakistan Customs computerized System (PCCS), the terminal officer shall electronically assign vehicle and cargo to the Gate-out-officer for electronic gate-out in the system.

    556L. Processing of gate-out.- After receiving the authorization in the PCCS, the gate-out office shall record gate-out event in the system.

    B. Exports

    556M. Filing of export goods declaration.- The exporter or his authorized representative shall file export goods declaration against the vehicle and goods meant for exports, before the vehicle enters the border custom station.

    556N. Processing of Gate-in.- After the filing of export goods declaration by exporter or his authorized representative, the information shall be verified by the gate-in officer. The gate-in officer shall record gate-in event in the system.

    556O. Processing of GD and out-of-charge.- After completion of processing, the GD will be out-of-charged and a message will be sent to the terminal operator. After receiving message from the PCCS, the terminal officer shall assign the vehicle and cargo to the cross border officer for electronic cross-border in the system.

    556P. Processing of cross border and export confirmation.- The cross border officer shall record the confirmation of export in the system, after physically verifying export cargo at the terminal/station exit gate, and shall generate system based three copies of “Cross-border authorization” to be collected at the zero-line by the officials of Customs, FC and terminal operator respectively, to ensure cross border of the vehicle and cargo.

    556Q. Amendment in manifest.- After filing of IGM or EGM, no amendment shall be allowed. In case of any human error, the rectification shall be allowed with the approval of an officer not below the rank of Additional Collector of the concerned MCC (Appraisement & Facilitation).

    556R. Import and export of cargo.- The procedure provided in the sub-chapter for import, export and other customs processes shall mutatis mutandis apply herein:

    Provided that in case any land customs station does not possess complete infrastructure, facilities or any required components for implementing all provisions relating to Customs Computerized System, the Collector may order such modification in any provision as may be deemed necessary under intimation to the Board, till such time all required facilities and components become available.

    556S. Reconciliation of all incoming and outgoing vehicles.-

    (1) Everyday in the morning, Customs, FC and terminal operator shall reconcile all the import manifests of the all incoming vehicles of the previous day with a system generated list that GDs have been filed for all incoming vehicles. In case, GD is not filed within forty eight hours of the arrival of the vehicle, the reasons may be ascertained by the Customs for late filing of GD including verification of location of the vehicle inside the custom station or terminal.

    (2) At the end of the day, all cross-border authorizations collected by customs authorities as well by FC & terminal operator shall be re- reconciled to ensure that all the requisite transport units which were issued gate-passes have crossed the border.

    (3) The daily imports and exports statements reconciled jointly shall be countersigned by the concerned Assistant/Deputy Collector of the Enforcement. While, the Directorate of Transit Trade shall conduct the reconciliation of transit cargo and empty containers as per mechanism given under the rules.

    (4) In case of any discrepancy, the incharge of Custom station will initiate action under the relevant provision of the Customs Act, 1969.

    (5) A weekly summary of reconciliation shall be forwarded to the respective Collector/Director to apprise them updated.

    (6) All concerned authorities i.e., Customs, FC and terminal operator shall keep the original record of import manifests and cross-border authorizations for a period of five years and to made available if required by Custom authorities.

  • Rupee makes gain for fourth straight day

    Rupee makes gain for fourth straight day

    KARACHI: The Pak Rupee made gains against the dollar for the fourth straight trading day on Friday owing to improved export receipts and workers’ remittances, dealers said.

    The rupee gained 18 paisas to close at Rs160.10 against the dollar from the previous day’s closing of Rs160.28 in the interbank foreign exchange market.

    The rupee made gain against the foreign currency for the fourth consecutive trading day as the exchange rate was at Rs160.79 to the dollar on Monday January 25, 2021 and ended the week at Rs160.10 on January 29, 2021, showing a gain of 69 paisas against the dollar.

    The dealers said that the sentiments remained positive in the market owing to resumption of talks between the government and the IMF.

    Further, the dealers hoped sufficient supply of the dollar into the market owing to improved export receipts and workers’ remittances in coming months.

  • OGDCL-PPL awarded exploration rights of new block in Balochistan

    OGDCL-PPL awarded exploration rights of new block in Balochistan

    KARACHI: The government has provisionally awarded exploration rights of a new block situated in the Balochistan Province to a joint venture comprising Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL), a statement said on Friday.

    The statement issued by PPL said that the government had provisionally awarded a new block ‘Suleiman (Block No. 3069-9) situated in Balochistan for exploration rights to the joint venture formed between OGDCL and the company.

    “OGDCL and the Company [PPL] each hold fifty percent working interest in the block which will be operated by OGDCL, subject to the execution of a Petroleum Concession Agreement and issue of an Exploration License,” the statement added.

  • SECP directs brokers to provide financial information through new online format

    SECP directs brokers to provide financial information through new online format

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) on Thursday directed stock brokers to provide financial information through a newly developed online system.

    The SECP issued Circular No. 02 of 2021 for online submission of financial information by securities brokers.

    The SECP directed the securities brokers to submit online financial information in a new standardized format on monthly basis as per the following details:

    — All securities brokers shall develop a Standard Trial Balance Report through mapping of secondary codes in their back-office system on the prescribed format. The brokers shall take all necessary steps to implement the reporting as given in the said format.

    — All securities brokers/TREC holders shall upload the report on their respective e-services portal through the linke “PSX TREC Holder Financial Information Portal”, within ten calendar days after the end of each month. The first monthly report of March 2021 shall be submitted through the system by April 10, 2021.

    The SECP said the latest circular will supersede Circular No. 04 of 2013 dated April 16, 2013 issued by the commission which acquires submission of financial information to the commission through online financial report system.

    The SECP issued guidelines for submission of financial information:

    — All securities brokers are required to implement the Standard Trial Balance Report by mapping / tagging the secondary codes in their existing bank office system either through their software vendors or themselves as the case may be.

    — Securities brokers are required to provide the values data corresponding to the nature of each account title and code prescribed in the report format.

    — All codes and account head mentioned in BOLD in the report format should not contain any value (or sum of values) in the report generated from the back-office system of securities brokers.

    — All securities brokers/PSX TREC holders shall generate MS Excel based Standard Trial Balance Report and upload the report for submission to the SECP through e-services portal using their existing credential i.e. login ID, Password and PIN.

    — Under e-services portal of SECP a separate link titled “PSX TREC Holder Financial Information Portal” is provided for uploading of the report.

    — SECP team will conduct training sessions to facilitate the securities brokers for submission of Standard Trial Report through e-services portal.

    — In addition to above, filing of quarterly returns under existing FRS will continue till the effective date of the circular and amendments in PSX Rule Book.