ISLAMABAD: Federal Board of Revenue (FBR) on Thursday said that sales tax can only be recovered from customer if the supplier is registered for sales tax purpose.
The FBR issued Sales Tax Circular No. 02 of 2019 and said that it was observed in many cases, suppliers of goods and services were charging sales tax on invoices/ receipts without identifying their sales tax registration number (STRN) on the ‘Invoices/Receipts’ issued to the customers. At times, National Tax Number (NTN) is indicated on invoices, to exhibit that the supplier is registered.
The FBR suggested customers to ask for invoices/receipts having STRN on the invoices/receipts on purchase of goods and services. “Sales tax can only be recovered from the customer if the supplier is registered for sales tax purposes, and reflects the STRN on the invoice/receipt issued to the customer.”
In other cases, the supplier is not entitled to recover sales tax from the customers. “Customers should beware of the same.”
The FBR said many suppliers were charging sales tax from customers without getting them registered under the sales tax regime. This practice is against the law and is liable to penal action. “This practice leads to increase in prices and undue enrichment of sellers without any deposit of tax with the government,” the FBR said.
Customers are suggested to seek invoice/receipts from suppliers with STRN on the invoices/receipts issued, if sales tax is charged on their purchases.
The FBR further explained that buyer is not required to provide his NIC in case of purchases from a person not registered for sales tax.
The FBR also clarified that in case of purchase of third schedule items, which are subject to sales tax on the basis of retail price and on which retail price along with sales tax is legibly and indelibly printed or embossed, the sales tax on the same is deposited by the manufacturer or importer. “In case of such items, STRN may not be required if the same are purchased from a retailer,” the FBR said.
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday issued draft rules for obtaining license which is mandatory for any business, profession or vocation to display.
According to draft amendment, the FBR proposed new rules, after Chapter XIII, the following new Chapter to Income Tax Rules, 2002 shall be inserted, namely:—
“Chapter XIIIA
Obtaining and Issuance of Business License
83A. The rules in this Chapter apply for the purposes of section 181A which provides for business license scheme.
83B. Definitions.— in these rules, unless there is anything repugnant to the subject or context,—
(a) “applicant” means a person who files application for issuance of business license;
(b) “Iris” means the application software on the web portal of Federal Board of Revenue for the purposes including application for business license;
(c) “service provider” means any person whose services to provide electronic data entry into Iris or any other web based application software, bio-metric verification and delivering the print out of the business license to the applicant for the purposes of these rules, has been hired by the Federal Board of Revenue.
83C. Application for and issuance of business license.— (1) Subject to sub-rule (4), any person engaged in any business, profession or vocation, shall apply to the Federal Board of Revenue for issuance of business license in the Form specified in the schedule.
(2) Where the applicant is having a cell phone number, issued by any mobile phone company and is having access to the internet facility, he shall file application form on the Iris or any software application developed by Federal Board of Revenue for the purposes of these rules. The system generated business license issued to the applicant shall be emailed to the applicant.
(3) Where the applicant is not having any cell phone number issued by any mobile phone company or not having access to internet facility, he shall provide the particulars to the service provider or the personnel in a Kiosk established by a Regional Tax Office, for online filing of the form, and the service provider or the personnel in the Kiosk, as the case may be, shall—
(i) verify particulars of the form filled in;
(ii) complete bio-metric verification of the applicant; and
(iii) give system generated print out of the business license to the applicant;
(4) Where a person’s name is appearing in the active taxpayers’ list, he shall be treated to have filed application and the system generated business license shall be emailed to his email address registered in Iris.
83D. Display of the business license.— (1) Every person who has been issued a business license under these rules, shall display the said license at every place of business of the person.
83E. No liability on holding a business license.— Where a person has been issued a business license, he shall not be liable to payment of any tax on account of holding a business license unless such person is otherwise liable to payment of tax under any other provisions of the Income Tax Ordinance, 2001.
The State Bank of Pakistan (SBP) has reported a significant boost in the country’s liquid foreign exchange reserves, which surged by $200 million to reach $15.062 billion as of the week ending July 26, 2024. This increase marks a notable improvement from the $14.862 billion recorded the previous week.
KARACHI: The share market ended down by 99 points on Thursday in a mixed trading session.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) Index closed at 31,839 points as against 31,938ts showing a decrease of 99 points.
Analysts at Arif Habib Limited said that the market traded in a narrow range with an oscillation between -158 points and +122 points, and ended the session at -99 points. O&GMCs, Cement and Chemicals traded in red most of the session, whereas Steel continued moving upward, carrying the trend from yesterday.
Large cap Banks and Cement contributed mostly to the downside in Index. Cement Sector led the volumes table with 21.6 million shares, followed by Technology (7 million) and Engineering (5.5 million). Among scrips, MLCF topped the chart with 10.6 million shares followed by TRG (5.3 million) and FCCL (4.8 million).
Sectors contributing to the performance include Banks (-38 points), E&P (-15 points), Power (-14ts), Food (-13 points), and Pharmaceuticals (-11 points).
Volumes increase from 70.2mn shares to 70.7mn shares (+0.6 percent DoD). Average traded value decreased by 23 percent to reach US$ 12.6mn as against US$ 16.4mn.
Stocks that contributed significantly to the volumes include MLCF, TRG, FCCL, UNITY and PAEL, which formed 40 percent of total volumes.
Stocks that contributed positively include FCCL (+11 points), POL (+9 points), PKGS (+8 points), APL (+5 points) and FATIMA (+5 points). Stocks that contributed negatively include PPL (-25 points), MCB (-18 points), BAHL (-15 points), FFC (-11 points) and NESTLE (-10 points).
KARACHI: The Pak Rupee gained 18 paisas against dollar on Thursday owing to improved inflows of foreign remittances and export receipts.
The rupee closed at Rs159.42 to the dollar from previous day’s closing of Rs159.60 in interbank foreign exchange market.
The foreign currency market was initiated in the range of Rs159.60 and Rs159.68. The market recorded day high of Rs159.60 and low of Rs159.35 and closed at Rs159.42.
The exchange rate in open market also witnessed gain in the rupee value. The buying and selling of dollar was recorded at Rs158.60/Rs159.60 from previous day’s closing of Rs159.00/Rs160.00 in cash ready market.
ISLAMABAD: Federal Board of Revenue (FBR) has removed threshold amount to purchase of immovable properties for collection of withholding tax.
The FBR issued Income Tax Circular No. 09 dated July 30, 2019 and said that through the Finance Act, 2019, the rate of tax on purchase of immovable property under Section 236K of Income Tax Ordinance, 2001 has been reduced to 1 percent from 2 percent.
Prior to the Finance Act, 2019, no tax was collected under Section 236K on purchase of property where the value of property up to Rs4 million.
“Through the Finance Act, 2019, the threshold of Rs4 million for collection of tax has been removed. Now tax on purchase of property will be collected on all transactions irrespective of the value of immovable property,” the FBR said.
The FBR said that tax under section 236C is collected from the seller or transfer at the rate of one percent of the gross amount of consideration received.
Prior to the Finance Act 2019, this tax was not collected if the property was held for a period exceeding three years.
Through the Finance Act, 2019, the period of three years has been extended to five years which means that tax under section 236C shall be collected if the immovable property is held for a period up to five years.
The FBR further explained that as per section 236W read with clause (c) of sub-section (4) of Section 111, every person responsible for registering, recording or attesting transfer of any immovable property was required to collect tax at the rate of 3 percent of the difference between the FBR value of property and the value recorded by the authority registering or attesting the transfer in cases where FBR value was greater than the recorded value.
So by paying three percent on the difference, the purchaser was not required to explain the source of difference of amount between FBR value and the recorded value.
Through Finance Act, 2019, section 236W as well as clause (c) of sub-section (4) of Section 111 have been omitted. Consequently, the purchasers are not required to explain the source of investment of property up to the FBR value of property whereas previously such purchasers were required to explain the source of investment to the extent of recorded value of property.
KARACHI: Meezan Bank – Pakistan’s leading Islamic bank – has recently signed a Memorandum of Understanding with Indus Motor Company Ltd (IMC) – one of the largest automotive manufacturers and distributors in Pakistan, to provide priority delivery of all Toyota variants to Meezan Bank’s customers.
The signing ceremony took place in Karachi and was attended by Arshad Majeed – Group Head Consumer Finance, Meezan Bank and Abdul Rab – Senior General Manager, Indus Motor Company Limited along with their respective team members.
Under this agreement, Meezan Bank will provide additional value-added services of priority processing as well as fast track delivery of Toyota vehicles to customers of Meezan Car Ijarah, Pakistan’s first Riba-free car financing product.
Arshad Majeed while speaking at the occasion said, “Meezan Bank is the leading player in Pakistan’s Islamic Auto Financing industry. We are hopeful that our alliance with Indus Motor Company Ltd will further facilitate our clients by providing them with the best services across the country.”
Meezan Bank is the leading Islamic Bank of Pakistan and the 7th largest Bank in the country. Meezan Bank has consistently been recognized as the Best Islamic Bank in Pakistan by numerous local and international institutions, which is a testimony of the Bank’s commitment to excellence. The Bank has also been recognized as the Best Bank – 2018 by Pakistan Banking Awards, the most prestigious awards in the country’s banking sector.
The Bank provides a comprehensive range of Islamic banking products and services through a retail banking network of over 680 in 190 cities supported by a countrywide network of over 700 ATMs, Visa & MasterCard Debit cards, a 24/7 Call Center, Internet Banking and Mobile Banking facility.
The VIS Credit Rating Company Limited (Formerly JCR-VIS Credit Rating Company Limited), an affiliate of Japan Credit Rating Agency, Japan has reaffirmed the Bank’s long-term entity rating of AA+ (Double A Plus) and short-term rating at A1+ (A One Plus) with stable outlook. The rating indicates sound performance indicators of the Bank.
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved imposition of 10 percent regulatory duty on import of cotton.
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued official note to streamline Anti-Benami Regime to stop white collar crimes.
The FBR said that Benami Transactions, entailing the phenomenon of Benami moveable and immoveable properties, Bank A/Cs, Luxury Vehicles, off shore investments and stocks & shares is one of the biggest economic and financial threats, currently camouflaging the rampant corruption in our society, deadly confronting Pakistan’s taxation system and practically compromising the economic viability of the country.
Due to non existence of a special Law and Rules on Benami all Anti-corruption agencies have so far failed in tracing and documenting the real/beneficial owners and criminals went scot free.
In order to combat the menace of Benami and take the spirit of accountability forward Federal Government has operationalized Benami Transaction (Prohibition), Act, 2017, which was dormant since February, 2017.
Federal Board of Revenue has been assigned the administration and implementation of this new stream of Financial Crime Investigation & Enforcement.
This office order is aimed at streamlining of newly introduced Anti-Benami Regime in Pakistan.
I. Organizational Framework: Anti Benami Regime Pakistan.
FBR, as the parent/administering department envisages two distinct streams of functions for this White Collar Crime Investigation Agency: independent Authorities and supporting Administrative Oversight.
Both streams shall co-exist, though mutually exclusive yet complementing each other. For the legal functions, to be conducted by different Anti-Benami Authorities, their operational independence is fully protected under Benami Transaction (Prohibition) Act, 2017.
However FBR’s administrative facilitation, financial support and organizational oversight are essential for sustainable field operations, development and strengthening of this newly launched regime.
Authorities
Core Functions
Support Functions
Initiating Officer (BS-18)
-Initiation of Anti-Benami Proceedings
-Attachment of Benami Properties -Inquiries and Investigations
-Filing of Reference to Adjudication Authority.
-Filing of Appeals
-Enforcement of various provisions of said Act.
-Examination and Analysis of
complaints and references by
different agencies
– Development of Research &
Analysis Cells
-Data Archiving
-Services of Notices
-Litigation Management
Approving Authority (BS-20)
-Highest Legal Authority at Anti-Benami Field formations
-Supervisory/Administrative authority at Benami Zones
-Granting approval of all major legal and Enforcement functions
-Inherent powers u/s 16
-Confiscation of benami properties
-Administrative and Financial head of Anti-Benami Zone
-Focal office for all correspondence with FBR and other Anti-Benami authorities
-Addressing genuine grievances and complaints
-Performance Management and Reporting
-Reposing officer in the cases of Initiating officers and Administrators
-Linkages with FBR portal and other economic & financial data bases
Administrator (BS-17)
-Management of Attached properties -Management of Confiscated properties
-Possession of benami properties
-Confiscation of benami properties
-Disposal of Confiscated properties
-Ware Housing in the cases of attached/confiscated movable properties
-Intelligence & Vigilance function of benami Zones
-Spear heading all enforcement activities
-Maintenance of Discipline and motivation in field workforce
Adjudicating Authorities (BS-21/22)
-Adjudication of References filed by Initiating Officers
-Inquiries and investigation
-Attachment powers
-Statutory powers to add or delete any person arrayed as accused or property labeled as benami
– Passing Confiscation Order
-Constitution of Adjudication benches
-Administration of Officers and
Employees of Adjudication Authority
-Advice to the Federal Government
on Adjudication related matters
-Development of Case Studies
-Critical References filed by Benami Zones
-Administration of justice
-Periodical Review of Law, Rules and patterns of crime
A. Authorities: Benami Transaction (Prohibition) Act, 2017 provides detailed description and powers & functions of various authorities. FBR has already notified the jurisdiction and appointment of field authorities at Islamabad, Lahore and Karachi.
In addition to their statutory functions, FBR deems it necessary to assigns field Benami authorities some support functions as well.
These support functions would help in realizing the desired results of this legislation and seamless implementation of this new regime.
B. Administrative Oversight: Director General-Anti Benami Initiative (DG- ABI)
In order to facilitate the Authorities and to ensure efficient and effective implementation of Anti-Benami law the office of DG-ABI is being raised to ensure smooth and effective implementation and enforcement of Anti-Benami Act, 2017. Without any interference in their respective legal domains, this administrative structure would provide the following support to Anti-Benami Zones.
i) DG-ABI would act as FBR’s focal office for proper implementation of Benami Transaction (Prohibition) Act, 2017. DG-ABI would act as a bridge between Anti-Benami Zones and FBR, between Zones and Adjudication Authorities and among all the Anti-Benami Zones as well.
ii) Establishment of Administrative hierarchy for the newly created Anti-benami Zones at Islamabad, Lahore and Karachi.
iii) Logistic Support, Financial Back up & autonomy and capacity building for Anti-Benami Zones.
iv) Development of uniform operational SOPs for transparent functioning of field authorities.
v) Contact point for all external agencies interacting with FBR in Benami related matters. Receipt, analysis and dissemination of benami related complaints, data, information and reference from all external Quarters.
vi) Development of linkages between Anti-benami authorities and FBR’s portal and external Data Bases. Central Data Bank on Benami.
vii) Quantitative Performance Evaluation of Anti-Benami Zones.
Qualitative Evaluation shall be made only after obtaining input from the concerned Adjudication Authority.
viii) Addressing all jurisdiction related issues in the light of FBR’s relevant notifications.
ix) Recommendations for review and amendments in Law, Rules and Procedure, covering Anti-Benami Regime
x) Personnel Management and Litigation
II. Directorate General-ABI: The Organizational structure
i) Directorate General-ABI would comprise a Director General, Director HQs and three Commissioners, Anti Benami Zones at Islamabad, Lahore and Karachi, responsible for their notified jurisdictions.
ii) Directorate General-ABI and its formations would be manned by officers of IRS and staffed by IR Department
III. Reporting Mechanism i) Administrators and Initiating Officers shall report to their respective Commissioners, Anti-Benami Zones.
ii) Commissioners, Anti Benami Zones would be independent in their Legal jurisdictions. For all administrative matters they will be reporting to DG-ABI Islamabad.
iii) DG-ABI would report to the National Coordinator for implementation of Benami Transactions (Prohibition) Act, 2017.
KARACHI: The stock market rebounded to gain 280 points on Wednesday owing to positive sentiments prevailed during the day.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,938 points as against 31,658ts showing an increase of 280 points.
Analysts at Arif Habib Limited said that the market rebounded finally on the last day of July.
Positive sentiments were seen across the board and were led by activity in cement and steel sectors.
Among Autos, HCAR and GHNI, and Steel, ISL, hit upper circuits. E&P Sector saw positivity since start of the session on the back of higher crude oil prices.
Across the board positivity can be attributed to the expectation of timid inflation and reversal of SBP’s policy rate in the short run.
Besides, last day of the rollover week contributed to the positive investor sentiment. Cement sector led the volumes table with 14.5 million shares, followed by Technology (9 million) and Engineering (8.7 million). Among scrips, MLCF took the lead with 7.1 million shares, followed by TRG (5.7 million) and ISL (4.3 million).
Sectors contributing to the performance include E&P (+69 points), Fertilizer (+63 points), Banks (+35 points), O&GMCs (+33 points), and Cement (+24 points).
Volumes increase from 51.3 million shares to 70.1 million shares (+37 percent DoD). Average traded value also increased by 24 percent to reach US$ 16.4 million as against US$ 13.2 million.
Stocks that contributed significantly to the volumes include MLCF, TRG, ISL, KEL and WTL, which formed 34 percent of total volumes.
Stocks that contributed positively include ENGRO (+34 points), PPL (+34 points), HBL (+20 points), POL (+19 points). Stocks that contributed negatively include PAKT (-31 points), AICL (-7 points), INDU (-5 points), MCB (-4 points) and CHCC (-2 points).
