Author: Mrs. Anjum Shahnawaz

  • FBR warns return filers against incorrect information

    FBR warns return filers against incorrect information

    ISLAMABAD: Federal Board of Revenue (FBR) has warned individuals, who are return filers, against harsh action for providing incorrect information of taxable income.

    The FBR on Tuesday said that it had acquired vital information about the income and expenditure of filers and non-filers.

    The revenue board advised return filers to visit the official information portal to view details of undeclared income and assets details available with the database of the FBR.

    The FBR also advised the return filers to correct their information before any action under the law was initiated against individuals for hiding taxable income.

    The FBR said that income tax return filing is mandatory to those persons who had obtained National Tax Number (NTN). Therefore, such persons should file their returns to avoid penal action.

    The FBR asked unregistered paying withholding tax should also apply for registration and file their income tax return.

    It is important to note that the last date for filing income tax returns for the tax year 2020 is December 08, 2020. The date was already extended by the FBR from September 30, 2020.

    The FBR made it clear that no further extension would be granted beyond December 08, 2020.

  • KCCI urges shopkeepers to strictly ensure coronavirus SOPs

    KCCI urges shopkeepers to strictly ensure coronavirus SOPs

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has urged shopkeepers to ensure strict compliance of SOPs and business timings to prevent spread of coronavirus.

    A statement issued on Monday said that KCCI president M. Shariq Vohra, after listening to the reservations raised by a delegation from All City Tajir Ittehad (ACTI), assured that KCCI would try its level best to make sure that no injustice is done to any shopkeeper even if the government opts another lockdown or smart lockdown in any market of Karachi to contain further spread of COVID-19 pandemic.

    “However, the shopkeepers must strictly ensure compliance of SOPs and also the business timings, besides devising effective strategies for social distancing as coronavirus, which is a matter of life and death, has to be taken seriously,” he added.

    Exchanging views with ACTI delegation which was led by its President Hammad Poonawala, President KCCI said that KCCI was in constant touch with the government and was closely eyeing numerous strategies being adopted to control coronavirus pandemic.

    Hence, any issue being faced by small traders/ shopkeepers must be brought to KCCI’s notice so that the same could be immediately taken up with relevant departments and amicably resolved. “KCCI would always advocate those strategies which are devised to not only save precious lives but also ensure minimum losses to business community during the ongoing most difficult and extraordinary situation.”

    Senior Vice President KCCI M. Saqib Goodluck, Vice President KCCI Shamsul Islam Khan, Chairman KCCI’s Special Committee for Small Traders Majeed Memon, Chief Police Chamber Liaison Committee Hafeez Aziz, Managing Committee Members, ACTI’s District-wise Presidents and representatives from various commercial markets of Karachi also attended the meeting.

    Keeping in view the developing situation and the fears of imposition of another lockdown, President KCCI advised representatives of numerous associations from commercial markets of Karachi to stay calm, improve liaison with KCCI and unite under the Chamber’s platform so that one voice could be raised for getting numerous issues resolved and the likely grievances, if not completely eradicated, could be minimized.

    He said, “It is high time that small traders and shopkeepers must change their mindset and start opening their businesses early morning which would certainly minimize the grievances being faced by them at the end of permitted business timings.

    “Shops and markets all over the world open early and close down in the evening which must also be adopted here as our religion also teaches us the same.”

    Responding to numerous complaints in which shopkeepers complained about harassment by police and customs officials, he advised that any complaint pertaining to harassment by customs officials must immediately be brought to KCCI’s notice so that the same could be taken up at the higher level.

    “The higher authorities are usually unaware of such wrongdoings being done by the officers at lower level as it has been observed that all such complaints are instantly resolved when brought to the notice of higher officials.”

    “The Karachi Chamber would invite IG Sindh soon so that the harassment-related problems being suffered by small traders could be resolved”, he assured.

    President KCCI advised small traders to become KCCI members which was the most vibrant platform for resolving all types of issues including the law & order, customs and taxation related issues as KCCI’s Subcommittees have been maintaining close liaison with all the departments which helps in swift resolution of relevant issues.

    Speaking on the occasion, President ACTI Hammad Poonawala appreciated KCCI for always promptly taking up the issues of small traders and shopkeepers under the supervision of Chairman BMG Siraj Kassam Teli.

    He pointed out that shopkeepers were nowadays fearing another lockdown or smart lockdown which, if imposed, would prove completely destructive for small businesses. “Hence, KCCI must play the lead role in convincing the government to refrain from imposing another lockdown and we will ensure strict compliance of all SOPs. In this regard, a committee should be formed by KCCI to look into the problems being suffered by small traders who have been facing a lot of hardships every day because of harassment and demand for Bhatta.”

    ACTI delegation also expressed deep concern over dilapidated condition of roads in Shershah market and other important markets of Karachi which were terribly affecting trade and commercial activities. Although assurances have been given from time to time but no development work has been initiated so far and the roads continues to worsen day by day. 

    They further complained that in order to demand bribes, policemen, traffic police officers and customs officials intercept their legal consignments with an excuse to check presence of any illicit product. Even if all the legal documents are presented and the consignment is not carrying any banned item, they do not release it until the demand for bribe is fulfilled. To deal with this serious issue, KCCI was requested to invite IG so that the business community could record their protest and formally request strictest action against such corrupt practices.

  • Sales tax rates on services provided by freight forwarders, customs agents, others

    Sales tax rates on services provided by freight forwarders, customs agents, others

    KARACHI: Sindh Revenue Board (SRB) has issued updated rate of sales tax on services provided by customs agents, freight forwarders and persons authorized to transact business on behalf of others.

    The SRB issued working tariff updated on November 01, 2020 for implementation of sales tax rates on services rendered or provided within Sindh province.

    Following are the services and rate of sales tax:

    Shipping agents: 13 percent

    Stevedores: 13 percent

    Ship management service: 13 percent

    Freight forwarders: 13 percent

    However, a fixed rate of Rs500 per bill of lading or house bill of lading is also available on:

    (i) services provided by freight forwarding agents in respect of issuance of bills of lading or house bills of lading.

    (ii) input tax credit shall not be admissible.

    Customs agents: 13 percent

    Travel agents: 13 percent;

    A reduced rate of five percent is also available with condition that input tax credit shall not be admissible.

    Tour operators: 13 percent;

    A reduced rate of five percent is available with condition that input tax credit adjustment shall not be allowed;

    Further services provided or rendered by tour operators in relation to Hajj and Umrah tour services are exempted from the levy.

    Recruiting agents: 13 percent;

    A reduced rate of 8 percent is available on:

    (i) recruiting agents who is stand-alone service provider and whose principal economic activity is related to recruitment of individuals or group of individuals for overseas employment in countries outside Pakistan.

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

    Advertising agents: 13 percent

    Ship chandlers: 13 percent

    Share transfer agents: 13 percent

    Sponsorship services: 13 percent

    Business support services: 13 percent

  • Share market gains 52 points in range bound trading

    Share market gains 52 points in range bound trading

    The Pakistan Stock Exchange (PSX) witnessed a modest gain of 52 points on Monday, with the benchmark KSE-100 index closing at 40,784 points, up from the previous day’s close of 40,732 points. The day’s trading was characterized by a range-bound session, with the index fluctuating between a high of +212 points and a low of -135 points.

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  • Dollar slips to Rs158.91

    Dollar slips to Rs158.91

    KARACHI – The Pakistani Rupee strengthened against the US Dollar on Monday, gaining 18 paisas. The improved economic indicators and reduced demand for import payments were cited as contributing factors to the rupee’s resurgence.

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  • Tax return filing reaches record high at 2.92 million

    Tax return filing reaches record high at 2.92 million

    ISLAMABAD: The filing of income tax return has reached a new high of 2.92 million following effective measures taken by the tax authorities to encourage persons having taxable income to file their return, according data released by Federal Board of Revenue (FBR) on Monday.

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  • Income tax rate on sale of petroleum products

    Income tax rate on sale of petroleum products

    The Federal Board of Revenue (FBR) has recently announced an update to the rate of income tax on the sale of certain petroleum products for the tax year 2021, spanning from July 01, 2020, to June 30, 2021.

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  • Reduced rate of sales tax granted on services for sale, purchase of immovable properties

    Reduced rate of sales tax granted on services for sale, purchase of immovable properties

    KARACHI: A reduced sales tax rate of 10 percent is granted on service provided or rendered by persons engaged in sale and purchase of immovable properties.

    The Sindh Revenue Board (SRB) issued working tariff updated up to November 01, 2020.

    The SRB issued the rate of sales tax on services provided or rendered in the matter of sale, purchase or hire.

    The SRB said that the sales tax rate shall be 13 percent on services provided for purchase or sale or hire of immovable properties. However, reduced rate of 10 percent is allow with condition that input tax credit adjustment shall not be admissible.

    Similarly, the rate of sales tax is 13 percent on services provided by property dealers. A reduced rate of 10 percent is available with condition that input tax credit adjustment shall not be admissible.

    The rate of sales tax shall be 13 percent on renting of immovable property services. However, a reduced rate of three percent is available with condition that input tax credit adjustment shall not be admissible. The SRB said that the tax shall be exempted on renting of immovable property services provided or rendered to an individual person whose income does not exceed the maximum amount that is not chargeable to tax under the Income Tax Ordinance, 2001.

    The rate of sales tax is 13 percent on services provided by car or automobile dealers. A reduced rate of 10 percent is available with condition that input tax credit adjustment shall not be admissible.

    The SRB said that sales tax rate shall be 13 percent on renting of machinery equipment, appliances and other tangible goods. However, a reduced rate of 5 percent is available with condition that input tax credit adjustment shall not be admissible.

  • Advance tax rate on sale to retailers updated

    Advance tax rate on sale to retailers updated

    ISLAMABAD: Federal Board of Revenue (FBR) has updated rate of advance income tax on sale to retailers during tax year 2021 (July 01, 2020 to June 30, 2020).

    The FBR issued Income Tax Ordinance, 2001 (updated up to June 30, 2020) after incorporating amendment brought through Finance Act, 2020.

    The rate of collection of tax under section 236H on the gross amount of sales shall be:

    The rate of advance tax on sale of electronics shall be one percent. The rate of advance tax in case of sales to other goods shall be 0.5 percent.

    Following is the text of Section 236H of Income Tax Ordinance, 2001:

    236H. Advance tax on sales to retailers.— (1) Every manufacturer, distributor, dealer, wholesaler or commercial importer of electronics, sugar, cement, iron and steel products, motorcycles, pesticides, cigarettes, glass, textile, beverages, paint or foam sector, at the time of sale to retailers, and every distributor or dealer to another wholesaler in respect of the said sectors, shall collect advance tax at the rate specified in Division XV of Part IV of the First Schedule, from the aforesaid person to whom such sales have been made.

    (2) Credit for the tax collected under sub-section (1) shall be allowed in computing the tax due by the retailer on the taxable income for the tax year in which the tax was collected.

  • Sales tax exempted on services provided by marriage halls on area up to 800 square yards

    Sales tax exempted on services provided by marriage halls on area up to 800 square yards

    KARACHI: Sindh Revenue Board (SRB) has said that marriage halls and laws are exempted from payment of 13 percent sales tax on services, which are located on plots measuring 800 square yards.

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

    The provincial revenue authority said that services provided or rendered by marriage halls and laws are subject to 13 percent sales tax.

    However, the exemption from whole of sales tax on services provided by marriage halls and laws which are located on plot measuring 800 square yards or less.

    The exemption is not available in case of marriage halls and laws:

    (i). which are air-conditioned on any day in a financial year;

    (ii). located within the building, premises or precincts of a hotel, motel, guest house, restaurant or club whose services are liable to tax;

    (iii). as are owned, managed or operated by caterers whose services are liable to tax;

    (iv). which are franchisers or franchisees; and

    (v) having branches or more than one hall or lawn in Sindh.