Pkrevenue.com

Author: Hamza Shahnawaz

  • Income tax on payment for brokerage, commission

    Income tax on payment for brokerage, commission

    Section 233 of Income Tax Ordinance, 2001 has defined rate of income tax on payment on account of brokerage and commission.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following is the text of Section 233 of Income Tax Ordinance, 2001:

    233. Brokerage and commission. — (1) Where any payment on account of brokerage or commission is made by the Federal Government, a Provincial Government, a Local Government, a company or an association of person or

    individual having turnover of hundred million rupees or more (hereinafter called the “principal”) to a person (hereinafter called the “agent”), the principal shall deduct advance tax at the rate specified in Division II of Part IV of the First Schedule from such payment.

    (2) If the agent retains Commission or brokerage from any amount remitted by him to the principal, he shall be deemed to have been paid the commission or brokerage by the principal and the principal shall collect advance tax from the agent.

    (2A) Notwithstanding the provisions of sub-section (1), where the principal is making payment on account of commission to an advertising agent, directly or through electronic or print media, the principal shall deduct tax (in addition to tax required to be deducted under clause (b) of sub-section (1) of section 153 on advertising services excluding commission), at the rate specified in Division II of Part IV of the First Schedule on the amount equal to-

    A x 15/85

    Where A = amount paid or to be paid to electronic or print media for advertising services (excluding commission) on which tax is deductible under clause (b) of sub-section (I) of section 153.

    (2B) Tax deducted under sub-section (2A) shall be minimum tax on the income of the advertising agent.

    (3) Where any tax is required to be collected from a person under sub-section (1), such tax shall be the minimum tax on the income of such persons.

    (Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

    For income tax rates on brokerage and commission please visit the following link:

    Tax rates on brokerage, commission for 2021-2022

  • Advance tax on private motor vehicles

    Advance tax on private motor vehicles

    Section 231B of Income Tax Ordinance, 2001 explains advance tax on private motor vehicles.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following is the text of Section 231B of Income Tax Ordinance, 2001:

    231B. Advance tax on private motor vehicles.— (1) Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of registration of a motor vehicle, at the rates specified in Division VII of Part IV of the First Schedule:

    “Provided that no collection of advance tax under this sub-section shall be made after five years from the date of first registration as specified in clauses (a), (b) and (c) of sub-section (6).”

    (1A) Every leasing company or a scheduled bank or a non-banking financial institution or an investment bank or a modaraba or a development finance institution, whether shariah compliant or under conventional mode, at the time of leasing of a motor vehicle to a “person whose name is not appearing in the active taxpayers’ list”, either through ijara or otherwise, shall collect advance tax at the rate of four per cent of the value of the motor vehicle.

    (2) Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of transfer of registration or ownership of a private motor vehicle, at the rates specified in Division VII of Part IV of the First Schedule:

    Provided that no collection of advance tax under this sub-section shall be made on transfer of vehicle after five year from the date of first registration in Pakistan.

    (2A) Every motor vehicle registration authority of Excise and Taxation Department shall, at the time of registration, collect tax at the rates specified in Division VII of Part IV of the First Schedule, if the locally manufactured motor vehicle has been sold prior to registration by the person who originally purchased it from the local manufacturer.

    (3) Every manufacturer of a motor “vehicle”shall collect, at the time of sale of a motor car or jeep, advance tax at the rate specified in Division VII of Part IV of the First Schedule from the person to whom such sale is made.

    (4) Sub-section (1) shall not apply if a person produces evidence that tax under sub-section (3) in case of a locally manufactured vehicle or tax under section 148 in the case of imported vehicle was collected from the same person in respect of the same vehicle.

    (5) The advance tax collected under this section shall be adjustable:

    Provided that the provisions of this section shall not be applicable in the case of –

    (a) the Federal Government;

    (b) a Provincial Government;

    (c) a Local Government;

    (d) a foreign diplomat; or

    (e) a diplomatic mission in Pakistan.

    (6) For the purposes of this section the expression “date of first registration” means—

    (a) the date of issuance of broad arrow number in case a vehicle is acquired from the Armed Forces of Pakistan;

    (b) the date of registration by the Ministry of Foreign Affairs in case the vehicle is acquired from a foreign diplomat or a diplomatic mission in Pakistan;

    (c) the last day of the year of manufacture in case of acquisition of an unregistered vehicle from the Federal or a Provincial Government; and

    (d) in all other cases the date of first registration by the Excise and Taxation Department.

    (7) For the purpose of this section “motor vehicle” includes car, jeep, van, sports utility vehicle, pick-up trucks for private use, caravan automobile, limousine, wagon and any other automobile used for private purpose.”

    Explanation.— For the removal of doubt, it is clarified that a motor vehicle does not include a rickshaw, motorcycle-rickshaw and any other motor vehicle having engine capacity upto 200cc.

    (Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

    Tax rates on unregistered new cars during 2021-2022
  • Exchange rates in PKR vs foreign currencies on Oct 6

    Exchange rates in PKR vs foreign currencies on Oct 6

    KARACHI: Following are the exchange rates of foreign currencies in Pak Rupee (PKR) on October 6, 2021 (The rates are updated at 08:48 AM):

    CurrencyBuyingSelling
    Australian Dollar123.10125.10
     Bahrain Dinar386.70388.46
     Canadian Dollar135.60137.60
     China Yuan23.7523.90
     Danish Krone23.4523.75
     Euro198.60200.10
     Hong Kong Dollar16.6516.90
     Indian Rupee2.032.10
     Japanese Yen1.411.44
     Kuwaiti Dinar481.60484.10
     Malaysian Ringgit36.4536.80
     NewZealand $96.3097
     Norwegians Krone17.5017.75
     Omani Riyal392.70394.70
     Qatari Riyal39.8040.40
     Saudi Riyal45.0545.55
     Singapore Dollar122.60124.10
     Swedish Korona18.3018.55
     Swiss Franc159.80160.70
     Thai Bhat4.804.90
     U.A.E Dirham46.5547.05
     UK Pound Sterling232.10234.60
     US Dollar172.40173.40

    Disclaimer: Team PKRevenue.com provides the available rates of the open market, which are subject to change every hour. Team PKRevenue.com provides the available exchange rates at the time of posting the story. So the team is not responsible for any inaccuracy of the data.

    Exchange rates in PKR vs foreign currencies on Oct 5
  • Exchange rates in PKR vs foreign currencies on Oct 4

    Exchange rates in PKR vs foreign currencies on Oct 4

    KARACHI: Following are the exchange rates of foreign currencies in Pak Rupee (PKR) on October 4, 2021 (The rates are updated at 11:35AM):

    CurrencyBuyingSelling
    Australian Dollar123125
     Bahrain Dinar386.60388.36
     Canadian Dollar135.50137.50
     China Yuan23.7023.85
     Danish Krone23.4023.70
     Euro198.50200
     Hong Kong Dollar16.6016.85
     Indian Rupee2.032.10
     Japanese Yen1.411.44
     Kuwaiti Dinar481.50484
     Malaysian Ringgit36.4036.75
     NewZealand $96.2596.95
     Norwegians Krone17.4517.70
     Omani Riyal392.60394.60
     Qatari Riyal39.7540.35
     Saudi Riyal4545.50
     Singapore Dollar122.50124
     Swedish Korona18.2518.50
     Swiss Franc159.70160.60
     Thai Bhat4.804.90
     U.A.E Dirham46.5047
     UK Pound Sterling232234.50
     US Dollar172.30173.30

    Disclaimer: Team PKRevenue.com provides the available rates of the open market, which are subject to change every hour. Team PKRevenue.com provides the available exchange rates at the time of posting the story. So the team is not responsible for any inaccuracy of the data.

    Exchange rates in PKR vs foreign currencies on Oct 3
  • No further return filing date extension after Oct 15th: FBR

    No further return filing date extension after Oct 15th: FBR

    ISLAMABAD: The Federal Board of Revenue (FBR) has said that its IT system is functioning smoothly and no date will further be extended.

    The FBR in a tweet message said advised all taxpayers both old and new taxpayers to avail the 15-day extension and must file the annual return.

    It is pertinent to mention here that the FBR extended the date for filing annual return for tax year 2021 from September 30, 2021 to October 15, 2021.

    The FBR issued Circular No. 08 of 2021 to extend the last date for further 15 days. Prior to this the FBR repeatedly advised the taxpayers to file their annual returns and no date would be extended.

    The Karachi Tax Bar Association (KTBA) and other business associations had asked the FBR to extend the date for filing income tax returns as IRIS – the online return filing portal – had technical errors. The FBR also dismissed such assumptions and said its system was running seamlessly.

    On the day of the last date, a delegation of business community from Karachi Chamber of Commerce and Industry (KCCI) met Finance Minister Shaukat Tarin and apprised him about the technical glitches in the online system. The finance minister on the request of Karachi Chamber announced date extension on spot.

    The FBR in its circular for date extension admitted serious technical issues in the IT system, which caused date extension.

    However, with the instant message the FBR made it clear that date would not be extended beyond October 15, 2021 as all the IT system errors have been fixed.

    FBR imposes service charges on POS invoices
  • Exchange rates in PKR vs foreign currencies on Oct 3

    Exchange rates in PKR vs foreign currencies on Oct 3

    KARACHI, October 3, 2021 – PKRevenue.com has provided the latest exchange rates of various foreign currencies against the Pakistani Rupee (PKR), offering a snapshot of the foreign exchange market’s dynamics.

    (more…)
  • FBR imposes service charges on POS invoices

    FBR imposes service charges on POS invoices

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday imposed service charges on invoices issued through Point of Sales (POS) that are integrated with the FBR system.

    (more…)
  • Tarin defends price hike in petroleum products

    Tarin defends price hike in petroleum products

    ISLAMABAD: Finance Minister Shaukat Tarin on Friday defended the hike in prices of petroleum products effective from October 01, 2021.

    He said that the government was absorbing the impact of the decade’s highest price-hike at international level to provide relief to people through various measures including direct food subsidy to the poor.

    Addressing a news conference, along with Minister of State for Information and Broadcasting, Farrukh Habib, the federal minister said that Covid-19 pandemic had triggered price hike all across the globe, adding that since Pakistan was importer of some essential commodities, hence it was impacted too.

    He said that the government had not passed on all this impact to people.

    Talking about the hike in petrol price, the minister said that Pakistan was at 17th number among the countries providing the commodity at the lowest prices, adding that the majority of the other 16 countries having lowest prices than Pakistan were oil-producing countries.

    He said that petrol prices in the country were even lower than regional countries, as it was being sold at Rs127 per liter in Pakistan whereas its price in India was Rs235 per liter and Rs195 per liter in Bangladesh.

    He said that the government wanted to reduce prices as it had already slashed the petroleum development levy from Rs30 in 2018 to just Rs2.5 per liter.

    He said, that the government had budgeted Rs600 billion from petroleum levy, which could be affected as the prime minister wanted to provide relief to people.

    Tarin said that it was very unfortunate that no proper attention was given towards agricultural sector for last three decades and resultantly, the country had become net importer of wheat, sugar, pulses and ghee and was directly affected by world inflation.

    He said despite all this, the government had taken measures to provide relief to people, particularly poor. The government had to buy sugar at higher rates, but it would be available around Rs90 per kilogram likewise, ghee prices that witnessed around 80-90 percent hike in international market and was available at Rs350 in Pakistan, would come down to below Rs 300 per KG.

    He said that the government would also provide direct food subsidies to 12.5 million families which constitute around 44 percent of total population. The subsidy would be provided on flour, sugar, ghee and pulses.

    The finance minister said the government was also evolving a mechanism to minimize the role of middlemen, which he said was one of the major causes of inflation adding that the provinces have also been asked to reestablish provincial price administrators to control prices.

    He said that the economy of the country was growing as the revenues have witnessed over 38 percent increase and exceeded the target by Rs186 billion.

    This means economy was growing, he said and expected that it would grow by 5 percent during the current fiscal year and resultantly it would have trickle down effect.

    He said that the major sectors of the economy including agriculture, industry and services sector were witnessing growth.

    He said that Kamyab Pakistan Programme would also be launched soon under which farmers would be provided interest-free loans of Rs150,000 per crop, Rs200,000 interest-free loans on mechanization whereas urban households would be provided Rs500,000 per family to start businesses.

    In addition, the government was also providing loans up to Rs2 million at 2 percent interest loans for construction of houses whereas health-cards were being provided to facilitate people.

    He said that the prime minister was very concerned about the welfare of common people.

    About debts, the minister said that the debt-to-GDP ratio came down by 4 percent last year, expecting that it would come down further during the current year.

    To a question, the minister said that the government would sincerely negotiate with the International Monetary Fund (IMF). He said that we had promised to collect revenues of RS5.8 trillion and the collection numbers till date show that the target would be exceeded.

    He said there were certain challenges faced in the power sector, but added that enhancing tariff rates, as advised by the IMF, was not a solution to the issue, so we would like IMF to provide space in this matter.

    Petrol price increases to record high at Rs127.30/liter
  • Pakistan oil sales increase by 26% in September

    Pakistan oil sales increase by 26% in September

    KARACHI: Pakistan oil sales have increased by 26 percent Year on Year (YoY) to 1.93 million tons in September 2021 as compared with 1.52 tons in the same month of the last year, a report suggested on Friday.

    The same is likely to remain largely similar on a Month on Month (MoM) basis due to rising pump prices, lower transportation activity, and lower furnace oil demand, according to analysts at Topline Securities. 

    In the first quarter of the current fiscal year, Pakistan oil sales are likely to clock in at 5.8 million tons, which will be the highest quarterly sales since the fourth quarter of fiscal year 2017/2018.

    Growth in oil sales in September 2021 has mainly been driven by higher petrol and High Speed Diesel (HSD) sales that were up by 23 percent YoY and 46 percent YoY, respectively. This has been on account of increased economic activity and rising car and bike sales. Furnace Oil sales also increased by 8 percent YoY to 0.4 million tons.

    Company wise data shows that Pakistan State Oil (PSO), Shell Pakistan (SHEL) and Attock Petroleum (APL) remained major gainers whereas Hascol Petroleum (HASCOL) lost market share.

    PSO sales improved by 39 percent YoY to 1.0 million tons as the company continued to witness higher sales in all fuel segments with its market share increasing to 50 percent in September 2021 as against 46 percent in September 2020.

    SHEL also reported a 32 percent YoY increase in sales, while APL sales were also up by 22 percent YoY to 0.2 million tons. On the other hand, HASCOL’s sales declined by 57 percent YoY.

    The analysts expect Pakistan oil sales to remain strong and anticipate sales growth of around 15-20 percent in fiscal year 2021/2022.

    Petrol price increases to record high at Rs127.30/liter
  • Dollar retreats after import restrictions

    Dollar retreats after import restrictions

    KARACHI: The US dollar retreated against Pak Rupee (PKR) on Friday after touching a record high at Rs170.66 a day earlier, which may be attributed to the imposition of import restrictions.

    The rupee ended Rs170.48 to the dollar from the previous day’s closing of Rs170.66 in the interbank foreign exchange market.

    A day earlier, the State Bank of Pakistan (SBP) announced a 100 percent cash margin requirement on an additional 114 items.

    Currency experts said import restriction had been the reason for today’s rupee recovery. However, widening of deficit in current account due to rising import bills will remain a concern for rupee value.

    PKR makes new historic low at Rs170.66 against dollar