Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • SECP softens regulatory regime for rating companies

    SECP softens regulatory regime for rating companies

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has softened regulatory regime for credit rating companies through amendments in the Credit Rating Companies Regulations, 2016.

    A statement issued on Friday, the SEPC said that Credit Rating Agencies (CRAs) play vital role in development of financial markets and conduct independent, professional and impartial assessment of the credit risk associated with a particular instrument or a corporate entity.

    The Securities Exchange Commission of Pakistan, to provide more conducive regulatory environment to Credit Rating Companies (CRCs) has introduced amendments in the Credit Rating Companies Regulations, 2016.

    The amendments have been designed while considering the dynamics of local industry and international best practices. The changes in regulatory framework aim at providing ease of doing business and promoting rating business without compromising quality of ratings.

    To provide the ease of doing business and reduce cost of business, the SECP has abolished the requirements for disengagement period of two years for private ratings, submission of annual accounts of associated concerns and obtaining documents relating to default status of associated concern.

    In addition, the requirements for submission of industry specific studies, additional copies of application, submission of updated resume, and dissemination of the financial statements of CRCs on their website also removed. In order to reduce cost of doing business, the SECP has waived fee to be paid at the time of permission and renewal of license. Further, the fee at the time of grant of licnese has been reduced from Rs1,000,000 to Rs100,000 only.

    To encourage new professional entrants with extensive research experience, individuals have been allowed to hold 40% of shareholding of Credit Rating Company.

    To ensure that CRCs focus on their core function, CRCs have been allowed to outsource their internal audit and compliance functions to independent chartered accountants firms.

    The regulations would result in reducing regulatory burden on CRCs with special emphasis upon building structural strength leading to enhancing the credibility of processes and procedure associated with the credit rating.

  • Stock market sheds 28 points amid FATF announcement

    Stock market sheds 28 points amid FATF announcement

    KARACHI: The stock market witnessed 28 points decline on Friday amid announcement of FATF regarding Pakistan’s position.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,870 points as against 33,899 points showing a decline of 28 points.

    Analysts at Arif Habib Limted said that the market ended the first session +124 points with 45 million shares in trade, however, the second session resulted in index closing in red with -28.4 points, adding 70 million more shares in trading volume.

    Activity was relatively brisk in second session as compared to first session.

    The second session braced for the impact of FATF decision on Pakistan, which gives a hint of stern action in case the unresolved action points are not resolved. Pakistan stays in grey list till February 2020.

    Overall, the market oscillated between +198 points and -231 points, where the second half showed more negativity. EFERT announced its financial results that gave more than anticipated dividends thus giving way for the stock price to hit upper circuit.

    Sectors contributing to the performance include Banks (-52 points), Tobacoo (-37 points), Chemical (-13 points), Autos (-12 points), Fertilizer (+104 points).

    Volumes declined from 137.9 million shares to 115 million shares (-17 percent DoD). Average traded value on the contrary increased by 30 percent to reach US$ 31.3 million as against 24.2 million.

    Stocks that contributed significantly to the volumes include LOTCHEM, EFERT, BOP, TRG and UNITY, which formed 38 percent of total volumes.

    Stocks that contributed positively include ENGRO (+56 points), EFERT (+41 points), NESTLE (+12 points), FFC (+11 points) and MARI (+10 points). Stocks that contributed negatively include HBL (-39 points), PAKT (-27 points), OGDC (-16 points), INDU (-12 points), and PMPK (-10 points).

  • FBR extends last date for filing sales tax, federal excise return

    FBR extends last date for filing sales tax, federal excise return

    ISLAMABAD: The Federal Board of Revenue (FBR) on has extended the last date for filing sales tax and federal excise return for the month of September 2019.

    According to a notification issued on Friday, the FBR extended the last date for making payment of sales tax and federal excise duty for the month of September 2019 to October 22, 2019 from October 15, 2019.

    The FBR extended the last date for submitting sales tax and federal excise return for the month to October 25, 2019 from October 18, 2019.

  • Rupee ends down by two paisas

    Rupee ends down by two paisas

    KARACHI: The Pak Rupee ended down by two paisas against dollar on Friday due to high demand for import payments.

    The rupee ended Rs155.91 to the dollar from previous day’s closing of Rs155.89 in interbank foreign exchange market.

    The foreign currency market was initiated in the range of Rs155.93 and Rs155.95. The market recorded day high of Rs155.97 and low of Rs155.90 and closed at Rs155.91.

    The exchange rate in open market was remained unchanged.

    The buying and selling of dollar was recorded at Rs155.70/Rs156.20, the same previous day’s level in cash ready market.

  • FATF gives Pakistan four months to comply with action plan

    FATF gives Pakistan four months to comply with action plan

    ISLAMABAD: Financial Action Task Force (FATF) on Friday set a deadline of four months for Pakistan to improve action plan against laundering and terror financing.

    At a press conference in Paris, France the officials of FATF expressed concerns over implementation of action plan by the Pakistani authorities.

    FATF strongly urged Pakistan to swiftly complete its full action plan by February 2020. Otherwise, should significant and sustainable progress not be made across the full range of its action plan by the next Plenary.

    It has been observed that action taken by Pakistan was not sufficient to address its Terror Financing risks. These include remaining deficiencies in demonstrating a sufficient understanding of Pakistan’s transnational Terror Financing risks.

    Pakistan’s failure to complete its action plan in line with the agreed timelines and in light of the terror financing risks emanating from the jurisdiction.

    To date, Pakistan has only largely addressed five of 27 action items, with varying levels of progress made on the rest of the action plan.

    In a statement, the ministry of finance said that the FATF Plenary meeting was held in Paris from 13-18 October 2019. The Pakistan delegation was led by Muhammad Hammad Azhar, Minister for Economic Affairs Division.

    The FATF meeting considered Pakistan’s progress report on the FATF Action Plan and Pakistan’s APG Mutual Evaluation report (MER).

    Pakistan’s delegation reaffirmed its political commitment to fully implement the Action Plan.

    The Plenary meeting decided to maintain status quo on the FATF Action Plan and allow the usual 12 months observation period for the APG MER.

    The delegation also held sideline meetings with various delegations and briefed them about the progress made by Pakistan on the FATF Action Plan and steps taken for strengthening its AML/CFT framework.

    A session on technical assistance and training needs of Pakistan was also organized in collaboration with UNODC and APG Secretariat which was attended by a number of interested countries and multilateral agencies including China, USA, UK, Canada, Japan, EU, World Bank, IMF, ADB, and UNODC.

  • Sellers must retain CNIC information for six years

    Sellers must retain CNIC information for six years

    ISLAMABAD: Sales tax registered persons selling goods are required to keep record of Computerized National Identity Card (CNIC) details for six years.

    Sources in Federal Board of Revenue (FBR) said that the condition of CNIC against sales of goods had been implemented from August 01, 2019. “All the details of CNIC must be maintained by the suppliers for examination and scrutiny purposes,” a tax official said.

    Under Section 24 of the Sales Tax Act, 1990, the records and documents must be retained for six years.

    “A person, who is required to maintain any record or documents under this Act, shall retain the record and documents for a period of six years after the end of the tax period to which such record or documents relate or till such further period the final decision in any proceedings including proceedings for assessment, appeal, revision, reference, petition and any proceedings before an alternative Dispute Resolution Committee is finalized.”

    The government through Finance Act, 2019 introduced significant changes to document the supply chain and made mandatory the information of CNIC on sales under Section 23 of the Sales Tax Act, 1990.

    Section 23: Tax Invoices

    Sub-Section (1): A registered person making a taxable supply shall issue a serially numbered tax invoice at the time of supply of goods containing the following particulars, in Urdu or English language, namely: –

    (a) name, address and registration number of the supplier;

    (b) name, address and registration, number of the recipient and NIC or NTN of the unregistered person, as the case may be, excluding supplies made by a retailer where the transaction value inclusive of sales tax amount does not exceed rupees fifty thousand, if sale is being made to an ordinary consumer.

    Explanation. – For the purpose of this clause, ordinary consumer means a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing:

    Provided that the condition of NIC or NTN shall be effective from 1st August, 2019;

    (c) date of issue of invoice;

    (d) description including count, denier and construction in case of textile yarn and fabric, and quantity of goods;

    (e) value exclusive of tax;

    (f) amount of sales tax; and

    (g) value inclusive of tax:

    Provided that the Board may, by notification in the official Gazette, specify such modified invoices for different persons or classes of persons;

    Provided further that not more than one tax invoice shall be issued for a taxable supply:

    Provided also that if it is subsequently proved that CNIC provided by the purchaser was not correct, liability of tax or penalty shall not arise against the seller, in case of sale made in good faith.

    Sub-Section (2): No person other than a registered person or a person paying retail tax shall issue an invoice under this section.

    Sub-Section (3): A registered person making a taxable supply may, subject to such conditions, restrictions and limitations as the Board may, by notification in the official Gazette, specify, issue invoices to another registered person electronically and to the Board as well as to the Commissioner, as may be specified.

    Sub-Section (4): The Board may, by notification in the Official Gazette, prescribe the manner and procedure for regulating the issuance and authentication of tax invoices.

  • Gwadar Port ready for Afghan transit trade handling

    Gwadar Port ready for Afghan transit trade handling

    ISLAMABAD: The ministry of commerce has said that Gwadar Port is ready for bulk cargo handling to and from Afghanistan.

    In a notification issued October 15, 2019, the ministry said that the bulk cargoes imported at Gwadar Port for onward transit to Afghanistan will be transported in containers after stuffing/loading the same into containers of international specifications.

    The ministry has informed about the decision to Pakistan Ship Agents Association, Pakistan International Freight Forwarders Association, National Logistic Cell, All Pakistan Shipping Association.

  • Incomplete particulars to make furnished annual return invalid

    Incomplete particulars to make furnished annual return invalid

    KARACHI: An income tax return filed by a taxpayer will be treated as invalid if the taxpayer has failed to provide complete particulars as required in return form.

    Sources in Federal Board of Revenue (FBR) said that taxpayers should carefully make entries in income tax return form and wealth statement form before submitting.

    The sources said that Section 120(3) of Income Tax Ordinance, 2001 stated that a commissioner of Inland Revenue is required to issue a notice to person, who had filed income tax return with incomplete particulars.

    The Section 120 of the Ordinance, 2001 explained the assessment of taxpayers on the basis of submitted income and assets declaration.

    Section 120: Assessments

    Sub-Section (1): Where a taxpayer has furnished a complete return of income (other than a revised return under sub-section (6) of section 114) for a tax year ending on or after the 1st day of July, 2002,—

    (a) the Commissioner shall be taken to have made an assessment of taxable income for that tax year, and the tax due thereon, equal to those respective amounts specified in the return; and

    (b) the return shall be taken for all purposes of this Ordinance to be an assessment order issued to the taxpayer by the Commissioner on the day the return was furnished.

    Sub-Section (1A): Notwithstanding the provisions of sub-section (1), the Commissioner may conduct audit of the income tax affairs of a person under section 177 and all the provisions of that section shall apply accordingly.

    Sub-Section (2): A return of income shall be taken to be complete if it is in accordance with the provisions of sub-section (2) of section 114.

    Sub-Section (3): Where the return of income furnished is not complete, the Commissioner shall issue a notice to the taxpayer informing him of the deficiencies (other than incorrect amount of tax payable on taxable income, as specified in the return, or short payment of tax payable) and directing him to provide such information, particulars, statement or documents by such date specified in the notice.

    Sub-Section (4): Where a taxpayer fails to fully comply, by the due date, with the requirements of the notice under sub-section (3), the return furnished shall be treated as an invalid return as if it had not been furnished.

    Sub-Section (5): Where, in response to a notice under sub-section (3), the taxpayer has, by the due date, fully complied with the requirements of the notice, the return furnished shall be treated to be complete on the day it was furnished and the provisions of sub-section (1) shall apply accordingly.

    Sub-Section (6): No notice under sub-section (3) shall be issued after the expiry of one hundred and eighty days from the end of the financial year in which return was furnished, and the provisions of sub-section (1) shall apply accordingly.

  • Importers require filing declaration within 10 days of goods arrival

    Importers require filing declaration within 10 days of goods arrival

    KARACHI: Importers are required to file goods declaration within 10 days of arrival of goods at the port of entry.

    The Federal Board of Revenue (FBR) issued Customs Act, 1969 update till June 30, 2019 incorporating changes brought through Finance Act, 2019.

    Prior to Finance Act, 2019 the importers were allowed to file goods declaration within 15 days.

    Section 79 of the Customs Act, 1969 described the filing of declaration and assessment.

    Section 79: Declaration and assessment for home consumption or warehousing or transshipment.-

    Sub-Section (1): The owner of any imported goods shall make entry of such goods for home consumption or warehousing or transshipment or for any other approved purposes, within ten days of the arrival of the goods, by,-

    (a) filing a true declaration of goods, giving therein complete and correct particulars of such goods, duly supported by commercial invoice, bill of lading or airway bill, packing list or any other document required for clearance of such goods in such form and manner as the Board may prescribe ; and

    (b) assessing and paying his liability of duty, taxes and other charges thereon, in case of a registered user of the Customs Computerized System:

    Provided that if, in case of used goods, before filing of goods declaration, the owner makes a request to an officer of customs not below the rank of an Additional Collector that he is unable, for want of full information, to make a correct and complete declaration of the goods, then such officer subject to such conditions as he may deem fit, may permit the owner to examine the goods and thereafter make entry of such goods by filing a goods declaration after having assessed and paid his liabilities of duties, taxes and other charges:

    Provided further that no goods declaration shall be filed prior to ten days of the expected time of arrival of the vessel.

    Explanation.- For the purposes of this clause, the assessment and paying of duty, taxes and other charges in respect of transshipment shall be at the port of destination.

    Sub-Section (2): If an officer, not below the rank of Additional Collector of Customs, is satisfied that the rate of customs duty is not adversely affected and that there was no intention to defraud, he may, in exceptional circumstances and for reasons to be recorded in writing, permit, substitution of a goods declaration for home consumption for a goods declaration for warehousing or vice versa.

    Sub-Section (3): An officer of Customs, not below the rank of Assistant Collector of Customs, may in case of goods requiring immediate release allow release thereof prior to presentation of a goods declaration subject to such conditions and restrictions as may be prescribed by the Board.