KARACHI: Syed Shabbar Zaidi, Chairman, Federal Board of Revenue (FBR) has said that the condition of Computerized National Identity Card (CNIC) has been made mandatory in order to document transactions above Rs50,000.
(more…)Author: Mrs. Anjum Shahnawaz
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Late filers to get ATL status only after surcharge payment
KARACHI: Late filers will only get their names on the Active Taxpayers List (ATL) after payment of penalty or surcharge.
It has been observed that many taxpayers were filing their income tax returns for tax year after the last date of August 09, 2019 but they could not get their name on the ATL.
The taxpayers noticed that their returns were filed and shown on the completed task but their names were not appeared on the ATL.
However, this issued was resolved when they deposited penal amount to the Federal Board of Revenue (FBR).
Officials at the FBR said that the late filers of Income Tax Return for Tax Year 2018 can pay “Surcharge for ATL” as defined under section 182(A) of Income Tax Ordinance 2001 by clicking on Tax Payment Nature “Misc” head in the PSID.
“Only after the payment of surcharge will the name of the late filer become part of ATL.”
In order to make normal payment through electronic mode, the officials said that in the e-Payments tab, a person will access Create Payment and then select Income Tax Annual Return option.
The resulting selection will lead you to Income Tax e-Payment page. On this page a payment slip (PSID) will be created by:
Selecting the relevant Tax Year
Typing the Tax amount due
Selecting the mode of payment
Clicking the create button on the bottom of the page Confirm the e-Payment created. This will successfully create the e-Payment slip.
The e-Payment slip can be deposited in any National Bank (NBP)/State Bank (SBP) branch. Select the nearest city where a taxpayer wants to deposit the payment slip from the drop down list.
Click the print button to download the PSID on your computer. Deposit the PSID in any of the available branches of the city of your choice.
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SRB suspends sales tax registration of Burshane Petroleum
KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Burshane Petroleum Private Limited for defaulting payments for eight months and non-compliance of return filing for the same period.
The SRB in a notice of suspension, said that short declaration of sales and non-payment of sales tax on services is contravention of Sales Tax on Services Act, 2011.
The board said that record of the company revealed that it had M/s. Hascol Petroleum Limited declared purchases of Rs310.95 million including sales tax of Rs40.42 million from Burshane Petroleum Pvt. Ltd during February 2019 to September 2019, and had also paid sales tax on services amount of Rs32.339 million to M/s. Burshane Petroleum Pvt Limited for onward payment to SRB.
However, Burshane Petroleum Pvt Limited have not filed their monthly sales tax return during February 2019 to September 2019 leading to sales suppression of Rs310.95 million and short payment of sales tax of Rs32.34 million.
The SRB said that the suspension would only be revoked if the company takes following remedial action by November 28, 2019:
To declare all sales and discharge all Sindh sales tax dues along with default surcharge.
To e-file the true and correct monthly Sindh sales tax return for the tax periods.
Further, the company has been directed to submit summary list along with copies of all invoices issued during January 2019 up to September 2019, copies of sales tax returns filed with other provincial sales tax authorities and copies of withholding certificates alongwith payment proofs.
The SRB warned that in case of non-satisfactory response for failure to take remedial measures on or before November 28, 2019, further necessary action would be taken as envisaged under the Act.
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Overseas Pakistanis to be allowed bring duty-free hybrid vehicles
ISLAMABAD: In order to recognize the services of overseas Pakistanis, the government is considering to allow bringing duty-free hybrid vehicles into the country.
A statement said that the Ministry of Overseas Pakistan has proposed a major reward for Overseas Pakistanis in recognition of their services for the country and for their enduring convenience abroad.
The ministry is currently in the process of developing a list of major concessions and privileges to be given to Overseas Pakistanis for which all stakeholders and various departments have been requested to offer their concessional proposals.
It is for this reason; the Commerce Division has been requested to give their opinion on allowing Overseas Pakistanis, who remit one hundred thousand dollars to Pakistan in two years’ time, to bring one hybrid vehicle up to 3000cc without any duty.
The Commerce Division has proposed sending the same to the Ministry of Industry and Production/Engineering Development Board (EDB) to obtain their opinion.
The departments have been requested to submit their comments on the proposal as soon as possible so that the Ministry of Overseas Pakistanis can prepare this list within a stipulated time as advised by the Prime Minister’s office.
Special Assistant to the Prime Minister (SAPM) on Overseas Pakistanis and Human Resource Development (OPHRD) and Chairman National Tourism Coordination Board (NTCB) Syed Zulfiqar Bukhari, announced his full support for the move, reiterating that the project would not only reward overseas Pakistanis for contributing to the national treasury, but would also curtail Hundi and Hawala culture.
PM’s advisor Zulfi Bukhari is currently on a three-day tour to Doha, Qatar where he is meeting with Qatar Officials to promote tourism and investment in Pakistan.
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Inflation cannot be controlled through high policy rate: FPCCI
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday said that inflation in Pakistan is cost push and it cannot be controlled through tight monetary policy stance.
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Only return filers allowed to claim income tax refunds
KARACHI: Only those taxpayers have been allowed to claim income tax refunds, who filed their income tax returns electronically, officials at Federal Board of Revenue (FBR) said.
Refund can be only claimed if the person has filed their income tax return electronically.
A manual Return does not entitle you to a refund, the officials said.
The refund amount should be clearly reflected in the taxpayers’ income tax returns filed on FBR’s portal i.e. Iris.
Refund resulting from the income tax return can be claimed by filing a separate application in Iris.
To check the status of application, the taxpayers can visit relevant Regional Tax Office (RTO).
The refund can also be claimed later on after submitting the income tax return, but within two years from the date of filling of return (date of assessment) or from the date on which the tax was paid, whichever is later.
However, persons filing tax return for tax year after the specified due date will not be entitled to refund during the period the person is not included in ATL and income tax authorities will not incur any liability of compensation for delayed refund for the period the person is not appearing in ATL and such period shall not be counted for the purpose of computing additional payment for delayed refund.
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Stock market gains 328 points as court proceedings on extension continue
KARACHI: The stock market gained 328 points on Wednesday despite ongoing court proceedings related to tenure extension of the army chief.
The benchmark KSE-100 index closed at 38,123 points as against 37,795 points showing an increase of +328 points.
Analysts at Arif Habib Limited said that the political uncertainty took center stage since yesterday, when SC took notice of Army Chief’s extension.
Considering this issue to be a procedural issue, which will be resolved by the government, market took a positive view of the situation and partly recovered points lost in yesterday’s trading.
All in all, the index gained 311 points during the session, and closed the session at +328 points.
Session did saw a loss of 123 points as the remarks by SC judges came in public, denting investor sentiment for a while.
Buying activity was largely observed in Steel and Cement sectors, wherein Steel and Auto sector scrips hit upper circuits.
Cement sector led the volumes with 49.7 million shares, followed by Vanaspati (24 million) and Food (23.5 million) repeating yesterday’s performance.
Among scrips, 2 of the top volume leaders were UNITY (24 million) and FFL (19.9 million) followed by MLCF (15.3 million) which closed at upper circuit.
Sectors contributing to the performance include Banks (+132 points), Power (+31 points), Tobacco (+31 points), Fertilizer (+22 points), and Autos (+14 points).
Volumes declined significantly by 53 percent to reach 228.1 million shares against 488.7 million shares. Average traded value also declined by 57 percent to reach US$ 51.5 million as against US$ 118.5 million.
Stocks that contributed significantly to the volumes include UNITY, FFL, MLCF, MLCFR1 and PAEL, which formed 37 percent of total volumes.
Stocks that contributed positively include MCB (+53 points), FFC (+39 points), PAKT (+32 points), HUBC (+30 points) and HBL (+28 points). Stocks that contributed negatively include ENGRO (-19 points), PPL (-13 points), MARI (-12 points), COLG (-9 points), and EFERT (-4 points).
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Rupee ends stable amid lower import payment demand
KARACHI: The Pak Rupee ended stable against dollar on Wednesday amid lackluster trading activities.
The rupee ended Rs155.33 to the dollar from previous day’s closing of Rs155.34 in interbank foreign exchange market.
Currency dealers said that dollar demand was remained lower for import and corporate payments.
The foreign currency market was initiated in the range of Rs155.33 and Rs155.36. The market recorded day high at Rs155.35 and low of Rs155.33 and closed at Rs155.33.
The exchange rate in open market witnessed depreciation in rupee value by 20 paisas against dollar.
The buying and selling of dollar was recorded at Rs155.40/Rs155.70 from previous day’s closing of Rs155.20/Rs155.50 in cash ready market.
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Properly filled stock statement to ensure refund in 72 hours: FBR
ISLAMABAD: Federal Board of Revenue (FBR) has said that property filled stock statement will ensure processing of sales tax refunds within 72 hours.
The FBR said that properly filled Annex-H, which is form to provide details of stock statement, without objections and anomalies of data will ensure processing in 72 hours.
The FBR said that Annex-H is a stock statement of input goods / services which shows flow of inputs in terms of quantity, value and sales tax involved in opening / closing balances, purchases and consumption in exports and local sales.
Quantities / values of finished products (exports and local) and output tax on local sales should not be mentioned in Annex-H3-Use Annex H to upload for the month transactions i.e. purchase, import and Consumption only, Opening and Closing are derived /calculated automatically.
Same is applicable for Excel file uploading otherwise objection of duplicate value will arise.
The brought forward and carry forward tax amount in the return should match with opening balance and closing balance tax amount in the Annex-H5
The value of purchases and input tax paid thereon in the return should match with the corresponding figures in columns “purchased / imported during the month” in Annex-H6-Generally, refund amount in column 29 of return is based on following formula:
Refund claim=Input Tax Consumed in Exports/ Zero Rated(Col 22 of Annex-H)–Net payment against local supplies
OR
Refund claim = Input Tax Consumed in Exports/ Zero Rated(Col. 22 of Annex-H)+Input tax consumed in local supplies (Col. 20 of Annex-H)− Accumulated debit from monthly return (Row 17 of return)
Mark invoice-wise inadmissible input tax for SRO 490 for accuracy in Annex-A of return
Avoid claiming input tax credit more than once on same GD / invoice (e.g. both in provinces and FBR return)
Credit brought forward from previous claim will be made available in opening balance in Annex-H.
Recovery / arrears data will be made available in Annex H Declaration
Following items relating to toll manufacturing have been added in “Item description” in Annex-H
a.Sizing
b.Yarn Dyeing
c.Yarn Doubling
d.Weaving
e.Knitting
f.Processing (Bleaching, Dyeing and Printing)
g.Stitching
h.Embroidery
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Tax return filing not mandatory for widow, orphan, disabled persons
KARACHI: Filing of income tax return is not mandatory for persons including widow, orphan and disabled persons for sole reasons mentioned in the Income Tax Ordinance, 2001.
Officials of Federal Board of Revenue (FBR) on Tuesday said that the Section 115 of Income Tax Ordinance, 2001 categorized persons, who are not required to file income tax returns.
It said that the following persons shall not be required to furnish a return of income for a tax year solely by reason of sub-clause (iii), (iv),(v) and (vi) of clause (b) of sub-section (1) of section 114 –
(a) A widow;
(b) an orphan below the age of twenty-five years;
(c) a disabled person; or
(d) in the case of ownership of immovable property, a non-resident person.
Sub-clause (iii), (iv),(v) and (vi) of clause (b) of sub-section (1) of section 114 are as under:
(iii) owns immovable property with a land area of five hundred square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;
(iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;
(v) owns a flat having covered area of two thousand square feet or more located in a rating area;
(vi) owns a motor vehicle having engine capacity above 1000 CC
The officials said that any person who is not obliged to furnish a return for a tax year because all the person’s income is subject to final taxation under sections 5, 6, 7, 148, 151 and 152, sub-section (3) of section 153, sections 154, 156 and 156A, sub-section (3) of section 233 or sub-section (3) of section 234A shall furnish to the Commissioner a statement showing such particulars relating to the person’s income for the tax year in such form and verified in such manner as may be prescribed.
(4A) Any person who, having furnished a statement, discovers any omission or wrong statement therein, he may, without prejudice to any other liability which he may incur under this Ordinance, furnish a revised statement for that tax year, at any time within five years from the end of the financial year in which the original statement was furnished.
(5) Subject to sub-section (6), the Commissioner may, by notice in writing, require any person who, in his opinion, is required to file a prescribed statement under this section for a tax year but who has failed to do so, to furnish a prescribed statement for that year within thirty days from the date of service of such notice or such longer period as may be specified in such notice or as he may, allow.
(6) A notice under sub-section (5) may be issued in respect of one or more of the last five completed tax years.