Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR issues rules for processing duty drawback claims

    FBR issues rules for processing duty drawback claims

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday issued draft rules for processing duty drawback claims in order to speedy repayment of exporters.

    The FBR issued SRO 561(I)/2020 to amend Customs Rules, 2001 for processing and sanctioning of duty drawback claims.

    The FBR said that the claims of duty drawback shall be sanctioned by the Customs if the same are complete in all respect and on first in first out (FIFO) basis.

    However, comprehensive audit of duty drawback would be carried out by the Directorate General of Post Clearance Audit (PCA) of the FBR.

    Any recovery detected by the PCA may be deducted from the next duty drawback claim of the exporter besides initiating recovery proceedings under the recovery rules.

    The duty drawback payment of such claims that are complete in all respects shall be made on FIFO basis taking into account the date of filing of claim.

    A consolidated discrepancy report shall be sent by the collectorate to State Bank of Pakistan (SBP) on monthly basis. The SBP shall also send a scroll of all the duty drawback payments made to the exporters.

    For calculating amount of customs duties paid at the time of import, past six months import data may be used taking the average quantity or value of each class or description of the materials, including packing materials, from which a particular class or description of goods is ordinarily produced or manufactured. Average exchange rates of the same period may be taken into consideration.

    The average amount of customs duties paid on imported materials used in the manufacturing of components, intermediate or semi-finished products which are exported as such or further used for manufacture of goods shall be taken into account for the purpose of calculation of the duty drawback.

    The average amount of customs duties paid at the effective rate on the imported input materials shall be calculated for the last six months import data.

    The average FOB (freight on board) value of each class or description of the goods exported during the last six months may be taken into consideration for the class or description of goods for which export drawback rates are being determined.

    On requisition by the relevant association, director general may furnish trade statistics pertaining to each class or description of imported or exported goods for the past six months on the basis of which export drawback rates need to be determined.

    At the time of submitting an application, the association shall specify the complete calculation in accordance with the method of calculation as the FBR may notify and shall also furnish therewith the worksheets.

    The Director General may initiate exercise for determination of duty drawback rates on its own motion where it is found that: duty drawback rates have not been determined; where already determination rates have changed due to amendments in tariffs.

  • NBMFCs allowed deferring loan repayment for one year

    NBMFCs allowed deferring loan repayment for one year

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has allowed non banking microfinance companies (NBMFCs) to defer loan payment of borrowers for one year.

    The SECP issued circular No. 21 of 2020 on Monday and allowed that NBMFCs may, upon a written request of a borrower received before September 30, 2020, defer repayment of principal loan amount by one year, provided that the borrower will continue to service the mark-up amount as per agreed terms and conditions.

    The SECP issued circular 09 of 2020 dated March 31, 2020 to allow three months’ extension in time to NBMFCs for accepting borrowers’ requests to defer repayment of principal loan amounts.

  • SRB issues procedure for sales tax collection on renting tangible goods

    SRB issues procedure for sales tax collection on renting tangible goods

    KARACHI: Sindh Revenue Board (SRB) on Monday issued procedure for collection of sales tax on services on renting of machinery, equipment, appliances and other tangible goods.

    The SRB issued the rules for the levy, collection and payment of tax on the renting of machinery, equipment, appliances, and other tangible goods.

    (1) This rule shall apply to the persons providing or rendering and also to the persons procuring or receiving the services of renting of machinery, equipment, appliances and other tangible goods as described against tariff heading 9806.6000 of the Second Schedule to the Act:

    Provided that this rule shall not apply in the cases of the services of commodity or equipment leasing, hire purchase leasing and rent a car and automobile rental service as described against tariff headings 9813.3020, 9813.3030 and 9819.3000, respectively, of the Second Schedule to the Act.

    (2) The rate of tax shall be 5 percent as prescribed against tariff heading 9806.6000 in the Table of notification No. SRB-3-4/8/2013 dated the 1 st July, 2013, subject to the conditions and restrictions prescribed therein.

    (3) The liability to deposit the sales tax shall be:-

    (a) on the person providing or rendering the services in the case the services are provided or rendered by a person in Sindh or from the place of business in Sindh; and

    (b) on the person procuring or receiving the service in the case the where the services is procured or received from a person not resident in Pakistan.

    (4) The amount of the sales tax involved shall be deposited in Sindh Government’s head of account “B-02384” by the 15th day of a month following the tax period to which it relates.

    The tax return, in the prescribed form, shall be e-filed within 3 days from the due date of payment.

    (5) The service providers shall maintain the records as are prescribed under the Act and the sub-rule (2) of rule 29.

    In addition, the service provider shall also maintain an account of the stock of machinery, equipment, appliances and other tangible goods possessed by him for provision of the service. In addition, the service recipients procuring or receiving the services from the service providers not resident in Pakistan shall also maintain the record prescribed under the Act or rule 29(2).

    (6) The services providers shall issue tax invoices in accordance with the provisions of rule 29(1).

  • Ufone awarded Rs518 million next generation broadband projects

    Ufone awarded Rs518 million next generation broadband projects

    ISLAMABAD: Universal Service Fund on Monday awarded contracts to PMTL (Ufone) for Next Generation Broadband for Sustainable Development Projects in Balochistan worth Rs518 million.

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  • Bank holiday announced on July 01

    Bank holiday announced on July 01

    KARACHI: The State Bank of Pakistan (SBP) will remain closed for public dealing on Wednesday, July 1, 2020, which will be observed as ‘Bank Holiday’ enabling the bank to close its accounts, the central bank said in a statement on Monday.

    All employees of the Bank will attend to their official assignments (in-office or work-from-home, as designated under the current COVID-19 situation) on Bank Holiday treating it as a normal working day (except for public dealing), it added.

  • SBP enhances credit card limits under consumer financing

    SBP enhances credit card limits under consumer financing

    KARACHI: State Bank of Pakistan (SBP) on Monday enhanced credit card limit by amending regulations related to consumer financing.

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  • KSE-100 gains 242 points: successful anti-terror operation boosts investors’ confidence

    KSE-100 gains 242 points: successful anti-terror operation boosts investors’ confidence

    KARACHI: The successful operation by law enforcement agencies (LEAs) against the terror attack on the Pakistan Stock Exchange (PSX) on Monday boosted investor confidence, resulting in the KSE-100 index closing with a gain of 242 points.

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  • Dollar strengthens to Rs168.19

    Dollar strengthens to Rs168.19

    KARACHI: The Pak Rupee ended down by 52 paisas against dollar on Monday owing to higher import and corporate payment demand, dealers said.

    The rupee ended at Rs168.19 to the dollar from last Friday’s closing of Rs167.67 in interbank foreign exchange market.

    The currency dealers said that the rupee was remained under pressure due to demand from importers and corporate buyers. They said that due to ending of the fiscal year most of multinational and foreign companies send profits to their parent companies.

    They further said that the ease in lockdown the business activities had started to get momentum and escalated the demand for imported goods.

    The currency dealers further said that the repayment of foreign debts had also weakened the rupee value.

    It is pertinent to mention that the SBP received around $1.7 billion last week from international financial institutions. However, the inflows also failed to give support to the local currency.

  • Pakistan Stock Exchange terror attack; all terrorists killed

    Pakistan Stock Exchange terror attack; all terrorists killed

    KARACHI: The security forces have failed a terrorist attack on Pakistan Stock Exchange (PSX) on Monday morning and killed all the four terrorists. However, four security guards and police personnel also died in this attack.

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  • FBR grants Rs45 billion customs duty exemption under free trade agreements

    FBR grants Rs45 billion customs duty exemption under free trade agreements

    In a significant move to bolster trade and economic relationships, the Federal Board of Revenue (FBR) has granted Rs45 billion in customs duty exemptions and concessions on imports under various Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) for the fiscal year 2019/2020.

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