Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR launches sales tax invoice verification system

    FBR launches sales tax invoice verification system

    ISLAMABAD: Federal Board of Revenue (FBR) has launched online system for verification of invoices, which issued against purchases from retail outlets.

    The FBR launched the integration of sales and purchases by Tier-1 retailers with aim to encourage 100 percent invoice submission to the revenue body.

    The FBR has given deadline of December 15, 2019 to all Tier-1 retailers, who are required to integrate their Point of Sale (POS) with the FBR system for submission of sale invoice on real-time basis.

    The FBR issued following procedure for reduced sales tax on invoices issued through online system:

    • Customers visit the counter to pay for his/her shopping

    • Customer visit the counter to pay for his/her shopping

    • Counter Boy Prepare the Invoice

    • Invoice is forwarded to FBR system for invoice number

    • Fiscal Invoice is generated, encrypted and stored in FBR Sale Data Controller and returns a fiscal invoice number to POS.

    • FBR Sale Data Controller Synch. the data with FBR central server on periodic basis.

    • POS generate the QR Code for fiscal invoice.

    • The receipt is printed out from the POS and physically delivered to the customer

    • Customer receive the printed fiscal invoice and verify it from FBR System using any of proposed mode.

    • On verification of invoice, FBR system mark this invoice for 6 percent tax collection. In case of non-verification of invoice, Bill will be changed as 9 percent tax collection.

    • Customer pay the bill according to the applied tax.

  • IR commissioners empowered to issue trial registration number

    IR commissioners empowered to issue trial registration number

    KARACHI: Commissioners of Inland Revenue have been empowered to issue trial registration number to taxpayers, who failed to comply with notices issued in this regard.

    Officials in Federal Board of Revenue (FBR) said that tax laws empowered IR commissioners to enforce income tax registration.

    They said that a commissioner having jurisdiction over a case may register a person as a taxpayer where he is satisfied that the income of the person is taxable and is required to file a return of income under section 114 of Income Tax Ordinance, 2001.

    The Commissioner shall issue to the taxpayer a letter under sub-section(2) of section 181 to submit an application for registration prescribed under rule 80 along with documents specified therein within a reasonable time given in the said letter.

    In case of compliance NTN certificate shall be issued accordingly.

    “In case of failure of the taxpayer to comply with the letter issued under sub-section (2) of section 181, the Commissioner shall register the taxpayer on a Trial Registration Number (TRN) for which a serially numbered Trial Register shall be maintained by the Commissioner.”

    The Trial Register shall contain the basic information of the taxpayer like name of the person or business, available address, CNIC “if provided”, nature of income generating activity and any other information regarded useful by the Commissioner. In such case, statutory notices shall be issued for assessment of income or other legal obligation of the taxpayer under the Ordinance on TR Number:

    Provided that before allotment of Trial Registration Number the Commissioner shall verify and match the particulars of the taxpayer from the NTN Master Index to avoid duplication of registration.

    In case any assessment is made or any liability is created by the Commissioner under the Income Tax Ordinance, 2001 against the taxpayer, the Commissioner on the basis of information as contained in Trial Register, allot an NTN to the taxpayer within fifteen days of the date of completion of assessment or creation of a liability under the Ordinance.

  • Customs Intelligence announces auction of non-duty paid vehicles on December 26

    Customs Intelligence announces auction of non-duty paid vehicles on December 26

    ISLAMABAD: Directorate of Customs Intelligence and Investigation, Rawalpindi has announced auction of confiscated non-duty paid vehicles on December 26, 2019 at State Warehouse.

    The directorate to offer following non-duty paid vehicles for the auction:

    01. Mercedes Benz Car (Bullet Proof), Model 1994, Chassis No. WDB1400322A114335

    02. BMW 7 Series, Model 2003, Chassis No. WBAGN42070DE20464

    03. BMW 735 Li Car, Model 2003, Chassis No. WBAGN42050DE21385

    04. Honda City Car, Model 2003, Chassis No. GD8-1004386, Engine Capacity, 1300CC

    05. Toyota Corolla Car, Model 1995, Chassis No. AE100-3302749, Engine Capacity 1498CC

    06. Mercedes Benz Car, Model 1994, Chassis No. WDB2020182F044548

    07. Toyota Hilux Surf, Model 2004, Chassis No. VZN215-0006957, Engine Capacity 3378CC

    08. Toyota Mark-X Car, Model 2011, Chassis No. GRX130-6043630, Engine Capacity 2500CC

    09. Toyota Land Cruiser Cygnus, Model 2004, Chassis No. UZJ100-0149702, Engine Capacity 4663CC

    10. Toyota Crown Car, Model 2004, Chassis No. GRS180-5009970

    11. Toyota Hilux Surf, Model 1998, Chassis No. RZN185-9016724, Engine Capacity 2700CC

    12. Toyota Premio Car, Model 2004, Chassis No. NZT240-0065261, Engine Capacity 1797CC

    13. Toyota Mark X Car, Model 2014, Chassis No. GRX130-6084786, Engine Capacity 2499CC

    14. Honda Civic Reborn Car, Model 2005, Chassis No. FD3-1000784

    15. Toyota Corona Car, Model 1996, Chassis No. AT210-0001448, Engine Capacity 1600CC

    16. Suzuki Swift Car, Model 2007, Chassis No. ZC71S-426827

    17. Toyota Premio Car, Model 2007, Chassis No. ZRT260-3015732, Engine Capacity 1797CC

    18. Suzuki Intruder Motorcycle Heavy Bike, Chassis No. VK54A-100630

    19. Honda Civic Reborn Car, Model 2006, Chassis No. FD3-1004646

    20. Toyota Land Cruiser, Model 2003, Chassis No. UZJ100-0141251, Engine Capacity 4668CC

    21. Toyota Mark – X Car, Model 2010, Chassis No. GRZ130-6034481, Engine Capacity 2500CC

    22. Toyota Mark – X Car, Model 2005, Chassis No. GRX120-0031681, Engine Capacity 2500CC

    23. Honda Airwave Car, Model 2005, Chassis No. GHI-1036512, Engine Capacity 1496CC

    24. Toyota Mark – X Car, Model 2010, Chassis No. GRX130-6011393, Engine Capacity 2500CC

    25. Toyota Crown Car, Model 2002, Chassis No. JZS171-0086674

    26. Toyota Premio Car, Model 2008, Chassis No. ZRT261-3005333, Engine Capacity 1800CC

    27. Toyota Feilder Car, Model 2006, Chassis No. NZE121-0335592, Engine Capacity 1500CC

  • SBP directs banks to ensure facilitation in donations for Dam Fund

    SBP directs banks to ensure facilitation in donations for Dam Fund

    KARACHI: State Bank of Pakistan (SBP) on Wednesday directed banks to facilitate people in depositing their donations for Diamer-Bhasha and Mohmand Dam Fund.

    The SBP said that in compliance with the directives of the Supreme Court of Pakistan in the Constitution Petition No.57/2016, the State Bank of Pakistan (SBP) vide Circular No. 04 dated July 10, 2018 and Circular No. 07 dated September 7, 2018 prescribed the mode, manner and channels for collection and deposit of donations to the subject Fund.

    Specifically, following channels were made available to the domestic donors:-

    a) Counters of the banks: Donors may deposit their donations and contributions at the counters of any branch of any bank in Pakistan, including microfinance banks, and remittance of donation so deposited to the principal account of the Fund at SBP within 30 minutes through Pakistan Real- time Interbank Settlement Mechanism;

    b) Alternate Delivery Channels (ADCs): In order to facilitate donors and to obviate the need to visit the branches; Internet Banking, Automatic Teller Machines (ATM) and other ADCs were also activated for collection and subsequent remittance thereof to the Fund Account at SBP; and

    c) Branchless Banking: The commercial and microfinance banks offering Branchless Banking (BB) were directed to facilitate the donors in depositing donations through their BB agents.

    Similarly, Overseas donors were facilitated to deposit their donations by using any of the following channels:-

    a) Wire transfer to SBP Nostro account with NBP, New York;

    b) Transfer through Money Service Bureaus, Money Transfer Operators and Exchange Houses;

    c) Deposit of donations at Pakistan Missions and Embassies abroad;

    d) Deposit of donations at branches of domestic banks abroad; and

    e) Transfer through Debit/Credit Cards

    The apex court in its recent hearing observed that donors still encounter difficulties in depositing their donations, both locally and overseas.

    The banks are directed that instructions, so far issued on the subject, vide circulars referred above must be meticulously complied with especially with regards to display of banners and panaflex advertising “DONATIONS TO THE SUPREME COURT OF PAKISTAN AND PRIME MINISTER OF PAKISTAN’S DIAMER BHASHA AND MOHMAND DAMS FUND ARE ACCEPTED HERE”.

  • Stock market ends down by 165 points on political uncertainty

    Stock market ends down by 165 points on political uncertainty

    KARACHI: The stock market fell by 165 point on Wednesday owing to ongoing political uncertainty.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,604 points as against 41,769 points showing a decline of 165 points.

    Analysts at Arif Habib Limited said that the market took a bearish tone today with the ongoing political uncertainty that caused investors to book profits.

    E&P stocks, particularly, bore significant selling pressure and traded in the red zone.

    During the session, index oscillated between +152 points and -379 points and closed the session -165 points. Oil & Gas chain had the most impact on index.

    Sectors contributing to the performance include E&P (-136 points), O&GMCs (-31 points), Tobacco (-18 points), Investment Banks (+51 points), Power (+29 points) and Banks (+25 points).

    Volumes declined from 412.4 million shares to 276.2 million shares (-33 percent DoD). Average traded value also declined by 31 percent to reach US$ 78.5 million as against US$ 113.6 million.

    Stocks that contributed significantly to the volumes include BOP, UNITY, FFL, KEL, HASCOLR1, which formed 24 percent of total volumes.

    Stocks that contributed positively include DAWH (+55 points), HUBC (+42 points), MEBL (+15 points), SHFA (+9 points) and UBL (+9 points). Stocks that contributed negatively include OGDC (-66 points), PPL (-55 points), NESTLE (-17 points), BAHL (-15 points), and LUCK (-15 points).

  • Sindh launches crackdown against tax defaulting motor vehicles from December 23

    Sindh launches crackdown against tax defaulting motor vehicles from December 23

    KARACHI: The Sindh government has decided to launch crackdown against tax defaulting motor vehicles across the province.

    The operation against tax defaulting motor vehicles will be launched from December 23, 2019.

    This decision was taken at a meeting, chaired by the Minister of Excise and Taxation and Narcotics Control and Parliamentary Affairs, Mukesh Kumar Chawla.

    The meeting was also attended by Secretary Excise and Taxation and Narcotics Control Abdul Haleem Sheikh, Director General Excise and Taxation and Narcotics Control Shoaib Ahmed Siddiqui and other officers.

    Giving the briefing to the meeting, Director General Shoaib Ahmed Siddiqui said that a massive public awareness campaign had been launched through media so that they could deposit their taxes in a timely manner and on the occasion of the road checking campaign, tax defaulting vehicles would be confiscated and the vehicles would be returned only after payment of due taxes and the arrears.

    Addressing the meeting, the Minister for Excise and Taxation and Narcotics Control and Parliamentary Affairs, Mukesh Kumar Chawla, advised the owners of the vehicles to transfer the vehicles into their names immediately after purchasing the vehicle because driving on open litter is a crime.

    He added that if the vehicle was used in a crime, then the person whose name was at that time, would be considered legally the original owner while there were 15 branches of National Bank of Pakistan for the convenience of the people to deposit their due taxes have been assigned and the details of these branches are posted on the department’s website and published in newspapers as well.

    On this occasion DG Shoaib Ahmed Siddiqui told that National Bank Branches were at Awami Markaz, Clifton, Site Area, Nazimabad, Shahbaz Building Hyderabad, Millat Road, Korangi Industrial Area, M.A. Jinnah, Dinsu Hall, Fatima Road Jinnah Road Hyderabad, DHA, PIDC, I.I Chandigarh Road, Gulshan and High Court.

    Provincial Minister Mukesh Kumar Chawla advised the owners of tax defaulting vehicles to deposit their taxes before December 23 to avoid any unpleasant situation on the roads

  • Rupee ends unchanged amid inflows

    Rupee ends unchanged amid inflows

    KARACHI: The Pakistani rupee remained unchanged against the US dollar on Wednesday, closing at Rs154.95 in the interbank market—the same level as the previous day. According to currency dealers, the stability in the rupee was largely due to steady inflows from exports and workers’ remittances.

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  • Informers to get 20% reward money in recovery against tax evasion

    Informers to get 20% reward money in recovery against tax evasion

    KARACHI: A person, who provides definite information of tax evasion and subsequent recovery, will get 20 percent of the recovered amount as reward.

    Officials of Federal Board of Revenue (FBR) told that the tax laws had defined the payment of reward.

    The amount of reward, in cases of exhibiting meritorious conduct to recovery of tax evaded or refund unlawfully paid, would be apportioned.

    The officials said that where an informer is involved in recovery of evaded tax then the informer will get 20 percent of the total recovery. The breakup of the reward amount would be 30 percent for employees involved in recovery. Further 10 percent will be given to supervising officers who write performance evaluation reports (PERs)

    The supporting staff of officers will get 15 percent, while 25 percent will be disbursed amongst Inland Revenue Welfare Fund.

    The officials said that where no informer is involved, the apportionment of the reward would be:

    Employees will get 50 percent; supervising officers who write performance evaluation reports (PERs) at 10 percent; supporting staff will get 15 percent; and Inland Revenue Welfare Fund will get 25 percent.

    The officials said that the amount of reward relating to officers and officials in the case where more than one individual is involved shall be distributed in proportion of their basic pay.

  • Bank deposits by wholesale trade sharply increase by 240%

    Bank deposits by wholesale trade sharply increase by 240%

    KARACHI: The bank deposits by wholesale trade sharply increased by 240 percent in November 2019 owing to higher interest rate and abolishing withholding tax rate on cash withdrawal, market sources said on Wednesday.

    According to data released by State Bank of Pakistan (SBP) on December 17, 2019, the bank deposits by wholesale trade increased to Rs511.45 billion by end of November 2019 as compared with Rs150.24 billion a month ago.

    The market sources said that the sharp increase in deposits by wholesale trade was mainly due to prevailing higher interest rate.

    The SBP in its monetary policy announcement on November 22, 2019 kept the policy rate unchanged at 13.25 percent.

    The sources said that the improvement in economic indicators also helped the confidence building of investors.

    This is also evident in the collection of withholding tax by Federal Board of Revenue (FBR) on profit on debt. The collection of tax from bank deposits registered increase by 204 percent to Rs21.6 billion during July – November 2019/2020 as compared with Rs7.1 billion in the corresponding period of the last fiscal year.

    The market sources also attributed to rise in bank deposits by wholesale trade to abolishing withholding tax on cash withdrawal by the government.

    The withholding tax at 0.3 percent which was applicable on the income tax return filers on withdrawal of cash above Rs50,000 in a day was abolished through Finance Supplementary (Second Amendment) Act, 2019.

    The sources said that majority of people making financial transactions had filed their annual returns to avoid paying withholding taxes or avail reduced rate of withholding tax.

    The filing of income tax returns has increased to record level of 2.71 million for tax year 2018.

    According to the SBP data the bank deposits of retail trade however slightly fell to Rs234.6 billion by end of November 2019 as compared with Rs241.25 billion in October 2019.

    The overall deposits under the head of wholesale and retail trade, repair of motor vehicles and motorcycles increased to Rs775.6 billion in November 2019 as compared with Rs419.6 billion in October 2019.

  • Cars import falls by 81pc during July – November

    Cars import falls by 81pc during July – November

    ISLAMABAD: The import of imported cars has sharply fell by 81 percent during July – November of 2019/2020 owing to restriction imposed by the government for customs clearance through payment in foreign exchange.

    The country spent $26.1 million for import of completely built units (CBU) cars during first five months of current fiscal year as compared with $135 million in the corresponding months of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS) on December 17, 2019.

    As per law the commercial import of used or old cars is not allowed. However, in order to facilitate Pakistanis living abroad the government has allowed incentives to bring cars into Pakistan.

    According to Federal Board of Revenue (FBR), Pakistani nationals residing abroad including dual nationals can import old and used vehicles into Pakistan under these schemes: Personal Baggage; Gift Scheme; and Transfer of Residence.

    Cars not older than three years and other vehicles not older than five years can be imported under these schemes, the FBR said.

    In the past these schemes were grossly misused and bulk of imported cars brought into the country.

    However, the ministry of commerce in February 2019 amended Import Policy Order, 2016 and made it mandatory for clearance of cars through foreign exchange, which should be certified by banks.

    Since then the clearance of the cars has come to a standstill. Customs authorities said that a large number of imported cars were at the port but importer had failed to make payment as per procedure prescribed by the ministry of commerce.

    The import of cars started declining in the last fiscal year. The import of CBU cars fell by 51.33 percent to $222 million in fiscal year 2018/2019 as compared with $456 million in the preceding fiscal year.

    The overall import of CBU vehicles during first quarter of current fiscal year fell 74 percent. The import of heavy vehicles including buses and trucks has declined by 42 percent. While import of CBU motorcycles fell by 75 percent.