Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Final tax regime for certain amount under Income Tax Ordinance

    Final tax regime for certain amount under Income Tax Ordinance

    KARACHI: Federal Board of Revenue (FBR) has defined final tax regime for certain income with certain conditions explained under Income Tax Ordinance, 2001.

    Following are the income falling under Final Tax Regime under the Ordinance:

    Section 5: Tax on dividends

    Section 6: Tax on certain payments to non-residents.—

    Section 7: Tax on shipping and air transport income of a non-resident person.

    Section 5AA: Tax on return on investments in sukuks.

    Section 7A: Tax on shipping of a resident person.

    Section 7B: Tax on profit on debt.

    The Section 8 of the Ordinance explained the scheme and terms and conditions
    General provisions relating to taxes imposed under sections 5, 6 and 7
    (1)-Subject to this Ordinance, the tax imposed under Sections 5, 5AA, 6, 7, 7A and 7B shall be a final tax on the amount in respect of which the tax is imposed and—

    (a) such amount shall not be chargeable to tax under any head of income in computing the taxable income of the person who derives it for any tax year;

    (b) no deduction shall be allowable under this Ordinance for any expenditure incurred in deriving the amount;

    (c) the amount shall not be reduced by —

    (i) any deductible allowance; or

    (ii) the set off of any loss;

    (d) the tax payable by a person under section 5, 5A, 5AA, 6, 7, 7A and 7B shall not be reduced by any tax credits allowed under this Ordinance; and

    (e) the liability of a person under section 5, 6 or 7 shall be discharged to the extent that —

    (i) in the case of shipping and air transport income, the tax has been paid in accordance with section 143 or 144, as the case may be; or

    (ii) in any other case, the tax payable has been deducted at source under Division III of Part V of Chapter X.

  • IR barred from arresting women on tax default

    IR barred from arresting women on tax default

    KARACHI: The offices of Inland Revenue are prohibited for arresting women on charge of tax default. Besides, the offices also cannot arrest a minor.

    According to Income Tax Rules, 2002 there is prohibition against arrest of woman or minor.

    The commissioner of Inland Revenue shall not order the arrest or detention in the civil prison of: a woman; or any person who, in his opinion, is a minor or of unsound mind.

    The rules also envisaged certain conditions on IR officers regarding entry into dwelling house for arresting tax defaulter.

    For the purpose of making an arrest under these rules,-

    (a) no dwelling house shall be entered after sunset and before sunrise;

    (b) no outer door of a dwelling house shall be broken open unless such dwelling house or a portion thereof is in the occupancy of the defaulter and he or any other occupant of the house refuses or in any way prevents access thereto; but, when the person executing any such warrant has duly gained access to any dwelling house, he may break open the door or any room or apartment if he has reason to believe that the defaulter is likely to be found there; and

    (c) no room, which is in the actual occupancy of a woman who, according to the custom of the country, does not appear in public shall be entered into unless the officer authorized to make the arrest has given notice to her that she is at liberty to withdraw and has given her reasonable time and facility for withdrawing.

    In case of illness of a tax defaulter the commissioner can release by cancelling the warrant for the arrest.

    Release on ground of illness.-

    (1) At any time after a warrant for the arrest of a defaulter has been issued, the Commissioner may cancel it on ground of the serious illness of the defaulter.

    (2) Where a defaulter has been arrested, the Commissioner may release him if, in the opinion of the Commissioner of Tax, he is not in a fit state of mind to be detained in the civil prison.

    (3) Where a defaulter has been committed to the civil prison, he may be, released therefrom by the Commissioner on the ground of the existence of any infectious or contagious disease or on the ground of his suffering from any illness.

    (4) A defaulter released under this rule may be re-arrested, but the period of his detention in the civil prison shall not in the aggregate exceed that authorized by rule 164.

  • Customs announces auction of mobile phones in huge quantity

    Customs announces auction of mobile phones in huge quantity

    ISLAMABAD: Model Customs Collectorate (MCC) Islamabad has announced auction of huge quantity of mobile phones to be held on December 24, 2019 at the state warehouse of the collectorate.

    Following is the list of mobile phones to be presented for auction by the collectorate:

    01. Q-Mobile Model K-650: 600 pieces

    02. Nokia 1202: 20 pieces

    03. Nokia 101: 20 pieces

    04. Nokia 105: 30 pieces

    05. Nokia 1280: 29 pieces

    06. Nokia 1616: 17 pieces

    07. Nokia 108: 40 pieces

    08. Nokia 3310: 50 pieces

    09. Vego Tel Classis I-10: 70 pieces

    10. Super Jamboo 1700: 49 pieces

    11. Vego Tel I 650: 20 pieces

    12. Kechadda K 116 Plus: 10 pieces

    13. Q-Mobile IE 4: 70 pieces

    14. Q-Mobile SP 3000 PRO: 50 pieces

    15. Q-Mobile Power 500 Music: 39 pieces

    16. Q-Mobile XL 100 Music: 13 pieces

    17. X-100 (i): 40 pieces

    18. Max X-7: 20 pieces

    19. KV-K2: 17 pieces

    20. KV-K400: 01 piece

    21. KV-K300: 01 piece

    22. KV-K200: 01 piece

    23. Mobile Phones: 25 pieces

    24. Q E-4: 50 pieces

    25. Q X-5300: 23 pieces

    26. Q Super Star Music: 22 pieces

    27. Q J-55: 03 pieces

    28. Q K-180: 44 pieces

    29. Q Super Star Power: 25 pieces

    30. Q Power 9: 22 pieces

    31. Q XL-8: 13 pieces

    32. Q Canodro I: 24 pieces

    33. Q Power 2000: 236 pieces

    34. Q J-2000: 20 pieces

    35. Q Power Pro: 20 pieces

    36. Q 3310: 14 pieces

    37. China Cromax: 14 pieces

    38. Q S P2000: 150 pieces

    39. Rivo R-800: 135 pieces

    40. Vigo Tel: 200 pieces

    41. Q Gold Pro: 50 pieces

    42. Voice V-60: 100 pieces

    43. Q-S P2000: 150 pieces

    44. Rivo R-800: 135 pieces

    45. Vigo Tel: 200 pieces

    46. Q Gold Pro: 50 pieces

    47. Voice V-60: 100 pieces

    48. Mobile Phones assorted make and model: 2,592 pieces

    49. Q-Mobile Q-3330: 315 pieces

    50. Q-Mobile CS-3: 155 pieces

    51. Q-Mobile I-Stone X-20: 08 pieces

    52. Q-Mobile K-180: 1220 pieces

    53. Q-Mobile Hero Power: 648 pieces

    54. Q-Mobile E-1000 P: 838 pieces

    55. Q-Mobile E4: 753 pieces

    56. Q-Mobile 4000 PRO: 348 pieces

    57. Q-Mobile LI Classic: 498 pieces

    58. Sony Sov 33: 30 pieces

  • Valuation to be issued to plug loopholes in sales tax collection on imported consumer goods

    Valuation to be issued to plug loopholes in sales tax collection on imported consumer goods

    KARACHI: Federal Board of Revenue (FBR) to issued sales tax valuation in order to plug revenue leakages on imported consumer items, sources said.

    The sources said that the FBR had identified massive misdeclaration and under invoicing on imported consumer items falling under Third Schedule of Sales Tax Act, 1990.

    In the latest budget 2019/2020, an amendment was introduced to Sales Tax Act, 1990 under which printing of retail price was made mandatory on imported consumer goods.

    The measure was introduced to end the assumed prices in order to recover sales tax on fixed retail prices on imported items.

    The law has been applicable since July 01, 2019 but due to difficulties faced by importers of such goods the FBR allowed relief in declaration without printing of retail prices subject to some conditions.

    The FBR issued Sales Tax General Order (STGO) on August 07, 2019 that the retail price, if not printed at import stage, can be printed at the port of import.

    According to the STGO: “If that is also not possible, the importer shall undertake to print the retail price after clearance of goods and shall pay sales tax on retail price which shall not be less than 130 percent of the customs value increased by assessed customs duties, excise duty and other applicable taxes and charges excluding sales tax.”

    The sources said that tax offices in Karachi conducted survey and found the selling price of imported consumer items was much higher than the declared value at customs clearance stage.

    They said that the finding of the survey had been sent to the FBR headquarters for taking further action.

    The printing of retail prices is mandatory for importers on items such as tea, juices, perfumes, household electrical goods, including air conditioners, refrigerators, deep freezers, televisions, recorders and players, electric bulbs, tube-lights, electric fans, electric irons, washing machines and telephone sets. These items shall also include house hold gas appliance, including cooking range, ovens, geysers and gas heaters.

    Besides items such as foam mattresses, paints, lubricating oils, storage batteries, tyers, motor cycles and auto rickshaws have also been included in the regime of printed retail prices.

    The sources said that as per latest development the FBR had decided to issue valuation of such imported consumer goods in order to realize correct sales tax at import stage.

  • Procedure to make application for income tax refund payment

    Procedure to make application for income tax refund payment

    KARACHI: A taxpayer is allowed to claim refund against excess payment of income tax against total liability during a tax year.

    Federal Board of Revenue (FBR) has notified procedure to apply for income tax refunds.

    The taxpayer should follow the procedure in order to file an application for availing income tax refund:

    Prescribed application for refund of tax.- An application for refund of tax under section 170 shall be made in the following form, namely:-

    The Commissioner,

    ______________ Zone,

    ______________ (City).

    Dear Sir,

    I _________________________________________________ of _________________________________ hereby declare:-

    (a) that my total income computed in accordance with the provisions of Income Tax Ordinance, 2001 (XLIV of 2001), during the year ending on being the income year for the assessment for the year ending on the _______________ amounted to Rs._______________.

    (b) that the total tax chargeable in respect of such total income is Rs._______________.

    (c) that the total amount of tax paid is Rs._______________.

    (d) that I have already filed evidence of payment of tax along with my return of income for the year or I enclose herewith evidence of tax already paid during the tax year for taking credit.

    I, therefore, request that a refund of Rs._______________ may be allowed to me.

    Yours faithfully_________________________

    Signature ____________________________

    NTN_________________________________

    Address_______________________________

    I hereby declare that I am resident/ non-resident and that what is in this application is correct.

    Date ____________________ Signature________________

  • Weekly Review: positive economic indicators to help market

    Weekly Review: positive economic indicators to help market

    KARACHI: The stock market may gain on back of normal political conditions and hope of further improvements in economic indicators during next week.

    Analysts Topline Securities said that after closing positively for seven consecutive weeks, KSE-100 index of Pakistan Stock Exchange (PSX) closed in red this week due to political pressures.

    The index started on a positive note this week with momentum continuing from the previous week as expectation relating to the rollover of deposit amounting US$5 billion from UAE & Saudi Arabia was reported.

    A decision by special court on former president Musharraf created a situation of conflict between judiciary and establishment which weighed negatively on investors.

    However IMF has completed its first review of Pakistan’s economic performance & has depicted satisfaction on improving macroeconomic situation of country which is expected to be a material positive going forward.

    Based on NCCPL data, foreigners bought US$3.15 million. On the local side, Mutual Fund were seller of US$8.4 million, & Banks were seller of US$6.6 million.

  • Karachi Ports handles largest ever vessel

    Karachi Ports handles largest ever vessel

    KARACHI: Karachi Port Trust (KPT) has handled the largest ever vessel in the history of port activity in Pakistan with gross registered tonnage of 153,666 metric tons.

    A statement on Friday said that the KPT achieved another milestone while handling a giant container vessel COSCO BELGIUM at its SAPT terminal in South Wharf of Karachi Port.

    This is the largest ever vessel handled for the very first time at Karachi Port with length overall (LOA) of 366 meters, highest gross registered tonnage (GRT) of 153,666 metric tonnes and maximum beam of 51.20 meters.

    None of the Pakistani port has ever handled such a giant vessel in past.

    The Hong Kong flag vessel came alongside SAPT-3 berths at 8:10 pm Pakistan time under the personal command and supervision of Deputy Conservator KPT Captain Asif Ahmed Saeed Tauni while adopting all safety measures. It became reality under the able guidance and dynamic leadership of Chairman KPT Rear Admiral (R) Jamil Akhtar, Hi(M), T.Bt.

    KPT has previously handled vessels of LOA 354.24 meters, 128,929 metric tonnes GRT and 45.6 meters Beam.

    Chairman KPT Rear Admiral Jamil Akhtar congratulated the entire operations team which participated in this landmark achievement.

  • Stock market gains 178 points amid selling pressure

    Stock market gains 178 points amid selling pressure

    KARACHI: The stock market gained 178 points on Friday amid selling pressure witnessed during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,833 points as against 40,655 points showing an increase of +178 points.

    Analysts at Arif Habib Limited said that the market traded in the range of +399 points and -161 points during the two sessions, closing +178 points.

    Selling pressure was evident throughout but Oil chain, especially E&P stocks, staged good recovery by the end of session.

    Higher international oil prices kept investors’ interest alive. Other than oil stocks, yesterday’s detailed decision on Pervez Musharraf inflicted more pain for investors, which saw banking and cement sector stocks under selling pressure.

    O&GMCs topped the chart with 32.8 million shares, followed by Cement (18.4 million) and Food (16 million). Among scrips, HASCOLR maintained top position with 18.6 million shares, followed by FFL (14.2 million) and UNITY (8.7 million).

    Sectors contributing to the performance include E&P (+134 points), Fertilizer (+27 points), Inv Banks (+26 points), Banks (-38 points), Textile (-18 points).

    Volumes declined from 260.2 million shares to 180.7 million shares (-31 percent DoD). Average traded value also declined by 25 percent to reach US$ 55.1 million as against US$ 73.2 million.

    Stocks that contributed significantly to the volumes include HASCOLR1, FFL, UNITY, KEL and PAEL, which formed 30 percent of total volumes.

    Stocks that contributed positively include PPL (+63 points), OGDC (+41 points), DAWH (+24 points), PAKT (+19 points) and FFC (+18 points). Stocks that contributed negatively include UBL (-17 points), HMB (-15 points), SNGP (-15 points), NML (-13 points), and MCB (-12 points).

  • Rupee ends unchanged in lackluster trading

    Rupee ends unchanged in lackluster trading

    KARACHI: The Pak Rupee ended unchanged against dollar on Friday owing to lackluster trading activities, dealers said.

    The rupee ended at Rs154.90, the same previous day’s closing, in interbank foreign exchange market.

    The currency dealers said that due to political uncertainty and expected appreciation of rupee value after approval of second tranche by IMF, the importers were cautious in opening letter of credit.

    The foreign currency market was initiated in the range of Rs154.90 and Rs154.90. The market recorded day high of Rs154.92 and low of Rs154.89 and closed at Rs154.90.

    The exchange rate in open market witnessed decline in rupee value. The buying and selling of the dollar was recorded at Rs154.50/Rs154.90 as compared with last day’s closing of Rs154.40/Rs154.70 in cash ready market.

  • Company registration increases to 108,433: SECP

    Company registration increases to 108,433: SECP

    ISLAMABAD: The total number of registered companies increased to 108,433 by end of November 2019, said a statement issued by Securities and Exchange Commission of Pakistan (SECP).

    The regulator registered 1,389 new companies in the month of November 2019.

    The substantial increase is result of SECP’s recent reforms to simplify the registration processes and reduce incorporation and regulatory forms tariffs.

    Among new incorporations, around 72 percent companies were registered as private limited companies, while around 25 percent were registered as single member companies.

    Three percent were registered as public unlisted companies, not for profit associations, foreign companies and Limited Liability Partnership (LLP) whereas 96 percent companies were registered online. During the month 130 foreign users completed registration process from overseas.

    The trading sector took the lead with the incorporation of 237, services with 165, I.T. with 159, construction with 151, tourism with 77, real estate development with 66, education with 65, food and beverages with 51, corporate agricultural farming with 39, engineering, and pharmaceutical with 35 each, marketing & development with 33, textile with 27, transport with 25, chemical with 24, auto and allied 21, healthcare with 19, mining and quarrying with 16, electric goods, and logging with 12 each, broadcasting and telecasting, and fuel and energy with 11 each, and 96 companies were registered in other sectors.

    Foreign investment has been reported in 61 new companies. These companies have foreign investors from, Bahrain, China, Czech Republic, Egypt, Germany, Korea South, Malaysia, Philippines, Russia, Saudi Arabia, Spain, Sweden, Switzerland, Taiwan, Tajikistan, the UK and the US.

    The highest numbers of companies, i.e. 477 were registered in Islamabad, followed by 358 and 282 companies registered in Lahore and Karachi respectively. The CROs in Peshawar, Multan, Gilgit-Baltistan, Faisalabad, Quetta, and Sukkur registered, 106, 64, 48, 42, 7 and 3 companies respectively.