Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR notifies last date of payment, sales tax return filing by electricity, gas companies

    FBR notifies last date of payment, sales tax return filing by electricity, gas companies

    ISLAMABAD: Federal Board of Revenue (FBR) has notified date for payment and filing monthly sales tax returns by electricity and gas distribution companies.

    The FBR amended Rule 18 of Sales Tax Rules, 2006 through SRO 918(I)/2019 dated August 07, 2019, under which registered persons are required to file monthly sales tax electronic returns.

    According to FBR, the due date of payment for electricity distribution companies is 18th of the month following the tax period in which the bill or invoice has been issued for the supplies made during the billing period. While the last date for filing returns electronically is 21sth day following the 18th day (for payment).

    For Independent Power Producers, the FBR said that the last date of payment is 22nd day of the month following the tax period of which sales tax invoice relates. The last date for electronic filing of sales tax return is 25th day following the 22nd day (for payment).

    In case of gas transmission and distribution companies, the last date of payment is 15th of the month following the tax period in which the bill or invoice has been issued for the supplies made during the billing period. The last date for electronically filing sales tax returns is 18th day following the 15th day (for payment).

    The FBR said that the last date of depositing sales tax collected on supplies by petroleum exploration and production companies is 18th of the month following the tax period in which supplies were made. While the last date for filing sales tax return is 21st day following the 18th day (for payment).

    The CNG dealers are required to make payment and file sales tax returns on quarterly basis. The FBR said that the last date of payment in case of CNG dealers is 15th day of the month following the end of quarter of the financia year. The last date for electronically filing sales tax return is 18th day following the 15th day (for payment).

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  • Investment in saving certificates rises by 19 percent to Rs2,217 billion

    Investment in saving certificates rises by 19 percent to Rs2,217 billion

    KARACHI: The investment in saving certificates has registered 19 percent growth to increase Rs2,217 billion in the last fiscal year owing to better rate of interest and safe investment avenue.

    The data released by State Bank of Pakistan (SBP) revealed that the investment increased to Rs2,217 billion by June 2019 as compared with Rs1,865 billion by end of same month of 2018.

    Experts said that the weak economic situation and continuous increase in interest rate by the central bank encourage investment in saving schemes.

    According to the central bank data the investment in the certificates issued by National Saving Center (NSC) rose by 20 percent to Rs2,096 billion by June 2019 as compared with Rs1,749 billion in the same month a year ago.

    The central bank had adopted monetary tightening stance since May 25, 2018 and pushed up interest rates to 13.25 percent from 6 percent during the past eight consecutive policy announcements.

    The market sources further elaborated that the deterioration in stock market was also a major factor behind significant investment in the government securities.

    As per the data the investment in the Defence Saving Certificates (DSC) increased to Rs393.58 billion by June 2019 as compared with Rs336.24 billion in the same month of last year.

    Meanwhile, the investment in Special Saving Certificates (SSC) grew to Rs413.71 billion fro Rs381.87 billion in the period under review.

    The data further showed that the investment in Regular Income Certificates posted sharp growth of 41 percent to Rs489.62 billion by June 30, 2019 as compared with Rs347.532 billion in the corresponding month of the last year.

    Further the investment in Behbood Saving Certificates grew to Rs914.46 billion from Rs794 billion.

    The market sources said that the government drive to document the economy and announcement to stop the circulation of Rs40,000 denomination prize bonds encouraged investors to divert the investments into saving schemes.

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  • FBR excludes self-generated goodwill from intangibles

    FBR excludes self-generated goodwill from intangibles

    ISLAMABAD: Federal Board of Revenue (FBR) has said that self-generated goodwill or any adjustment arising on account of account treatment as may be prescribed in rules has been excluded from the definition of intangibles.

    Explaining the changes made to Income Tax Ordinance, 2001 through Finance Act, 2019, the FBR said that the term intangible has been defined in sub-section (11) of section 24.

    The Ordinance defines the intangible as: “any patent, invention, design or model, secret formula or process, copyright, trade mark, scientific or technical knowledge, computer software, motion picture film, export quotas, franchise, licence, intellectual property, or other like property or right, contractual rights and any expenditure that provides an advantage or benefit for a period of more than one year (other than expenditure incurred to acquire a depreciable asset or unimproved land).

    The FBR said that amortization deduction has been allowed under Section 24 for the cost of a person’s intangibles that have a normal useful life exceeding one year and that are wholly or partly used by the person in the tax year in deriving income from business chargeable to tax.

    Amortization deduction for a tax year is computed by dividing the cost of the intangible over normal useful life of the intangible in whole year.

    Prior to the Finance Act, 2019, sub-section (4) of Section 24 stated that where an intangible had a normal useful life of more than ten years or where its useful life was not ascertainable, it was treated to have a normal useful life of 10 years.

    Through the Finance Act, 2019, sub-section (4) of Section 24 has been substituted to the effect that an intangible shall now be amortized over its actual normal useful life which can extend beyond ten years also.

    Further, where the normal useful life is not ascertainable, the intangible shall be treated to have normal useful life of 25 years.

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  • MCC Appraisement West to work on Sunday to clear pending consignments before Eid holidays

    MCC Appraisement West to work on Sunday to clear pending consignments before Eid holidays

    KARACHI: Model Customs Collectorate (MCC) Appraisement – West will observe Sunday, August 11, 2019 as normal working day in order to facilitate trade in clearance of their pending consignments ahead of Eid-ul-Azha.

    Model Customs Collectorate (MCC) Appraisement, West on Saturday issued letter to Karachi International Container Terminal (KICT) to observe Sunday as normal working days for examination at the terminal. The collectorate decided to observe the weekly holiday as normal working day on the issue raised by Karachi Customs Agents Association (KCAA) about huge number of pending containers at the KICT.

    The colletorate pointed out that despite reminders to KICT management there are 200 containers, which are remained not cleared till August 10, 2019 as Eid ul Azha is falling on August 12, 2019 following by four public holidays.

    Slackness in disposal of work on part of terminal is not only effecting cash liquidity position of the traders but increase their clearance time along with causing mental agony to them, it said.

    The collectorate directed the terminal operator to expedite grounding of all pending containers but also match the infrastructure and human resource with the requirement of work at the port.

    Mostly, grounding at port is affected when delivery is being made at night by terminal or containers are being discharged from berthed vessels. This situation is undesirable and the terminal should make maximum arrangements to liquidate the pendency, the collectorate said.

    As interim arrangement customs on its own is going to observe normal working day on Sunday and it directed the terminal to make maximum grounding in order to mitigate the worries of trade and dispose of examination work at the port.

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  • Naqvi to make capital market attractive place for investors: PTBA

    Naqvi to make capital market attractive place for investors: PTBA

    KARACHI: Pakistan Tax Bar Association (PTBA) on Saturday welcomed the appointment of Syed Masoud Ali Naqvi as Chairman Policy Board of the Securities and Exchange Commission of Pakistan (SECP).

    In a statement, the tax bar said that Naqvi would able to guide the SECP effectively on various matters and challenges that the commission was facing as a regulator.

    The tax bar particularly pointed out that Naqvi would able to make the capital market an attractive avenue for local and foreign investors.

  • KCCI managing committee elected unopposed for next two years

    KCCI managing committee elected unopposed for next two years

    KARACHI: All candidates of Businessmen Group (BMG) have been elected unopposed for the Managing Committee of Karachi Chamber of Commerce & Industry for the term 2019-2021.

    According to details, a total of 32 nominations were received by the Election Commission who all belonged to Businessmen Group, a statement said on Saturday

    The nominations papers were scrutinized by the Election Commission, which rejected 10 nomination papers by declaring them invalid whereas 7 candidates withdrew their nomination papers, resulting in unanimous election of the remaining 15 BMG candidates.

    Therefore, all 15 BMGIANs were declared successful in KCCI’s Election 2019-21.

    Siraj Kassam Teli, Chairman Businessmen Group (BMG) and Former President KCCI, on the occasion, expressed gratitude to Almighty Allah and conveyed thanks and compliments to the Business and Industrial community of Karachi for reposing confidence and trust on Businessmen Group.

    Siraj Teli said, “By the grace of Almighty Allah, BMG has been winning all the elections without losing a single seat for the last 22 years and after terribly defeating the opponents in last year’s election with double the votes, BMGIANs have been blessed with an unopposed victory by the Almighty Allah.

    He said that 22 years of success is an acknowledgement of the public service by the Businessmen Group which also testifies that overwhelming majority of Business and Industrial Community endorses the policies of BMG because they understand and believe that BMGians are serving them selflessly for their betterment.

    BMG Chairman hoped that the newly elected BMGians will make all out efforts in espousing the cause of Business and Industrial Community and to further enhance the status of public service which is the motto of BMG.

    The successful BMGians include names of Mohammad Junaid Mundia, Arshad Islam, Agha Shahab Ahmed Khan, Muhammad Altaf Tai, Abdul Samad Shaikh, Atif Jamil ur Rehman, Muhammed Asif, Chaudhry Nasir Abdullah, Ibrahim Mustafa Ahmed Shamsi, Rafiq Muhammad Siddiq, Khurram Ajaz, Ovais Adil, Abdul Rehman Punjwani, Sohail Usman Sheikh and Junaid ur Rehman.

    As the Managing Committee members have been unanimously elected, hence no general election for Managing Committee will be held on September 21, 2019 whereas the election of KCCI’s Office Bearers for 2019-20 is scheduled to be held on Thursday, September 26, 2019 wherein BMG’s candidates Agha Shahab Ahmed Khan for President, Arshad Islam for Senior Vice President and Shahid Ismail for Vice President will be elected unanimously as the Managing Committee comprises of all BMGIANs.

  • Weekly Review: Stock investors to take break for Eid Holidays

    Weekly Review: Stock investors to take break for Eid Holidays

    With the index set to pause for the Eid break next week, stock investors have an opportunity to step back, reflect, and strategize. The recent tumultuous week has left market participants grappling with substantial losses, but analysts at Arif Habib Limited encourage reassessment of the situation, highlighting potential value-buying opportunities amid the downturn.

    (more…)
  • Stock market falls by 309 points amid selling pressure

    Stock market falls by 309 points amid selling pressure

    KARACHI: The stock market registered 309 points decline on Friday amid selling pressure in blue chip stocks.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 29,429 points as against 29,738 points showing a decline of 309 points.

    Analysts at Arif Habib Limited said that the market continued trimming down today, with selling pressure in Banks, E&P and Cement sector stocks.

    Coming MSCI review had Investors concern about selling activity from Foreigners, which caused this selling pressure in blue chip stocks in Banks, E&P and Cement sectors.

    Mid cap Cement, Steel and Refinery sector scrips traded green. NCL hit upper circuit upon notification of buy back. Cement sector led the volumes table with 14.8 million shares, followed by Technology (9.8 million) and Banks (9.5 million). MLCF led the volumes with 7.7 million shares, followed by EPCL (5 million) and TRG (4.8 million).

    Sectors contributing to the performance include Banks (-143 points), E&P (-119 points), Fertilizer (-49 points), O&GMCs (-22 points), Chemical (-11 points).

    Volumes declined from 109.3 million shares to 76.4 million shares. Average traded value also declined by 29 percent to reach US$ 19.5 million as against US$ 27.4 million.

    Stocks that contributed significantly to the volumes include MLCF, EPCL, TRG, WTL and UBL, which formed 31 percent of total volumes.

    Stocks that contributed positively include NESTLE (+14 points), MCB (+11 points), DGKC (+10 points), KTML (+5 points) and MLCF (+5 points). Stocks that contributed negatively include HBL (-75 points), OGDC (-47 points), PPL (-46 points), BAHL (-30 points) and ENGRO (-29 points).

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  • FBR directs gas utilities to refuse commercial, industrial connections to non-ATL persons

    FBR directs gas utilities to refuse commercial, industrial connections to non-ATL persons

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday directed gas utilities not to provide connection to unregistered persons or not appeared on Active Taxpayers List (ATL).

    Chairman FBR Syed Shabbar Zaidi has sent letters to Managing Directors Sui Northern Gas Company Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) wherein he has requested that consumers not present on ATL under Section 181A of Income Tax Ordinance, 2001 may not be provided commercial and industrial gas connections.

    Section 181 AA states: “Notwithstanding anything contained in any law, for the time being in force, any application for commercial or industrial connection, of electricity or gas shall not be processed and such connection, shall not be provided unless the person applying for electricity or gas connection is registered under Section 181A.”

    Under this provision of law a person seeking gas connection should be on Active Taxpayers List of the FBR.

    The chairman has stated in the letter that many users of commercial and industrial gas connection do not fall within ATL of the FBR.

    The chairman has requested that the list of all persons using industrial and commercial gas connections be shared with FBR as soon as possible.

    Moreover, intimation may be issued by the company to the users of such connections to comply with the aforesaid conditions laid down under the Income Tax law.

    The chairman has suggested appointing a ‘focal person’ to coordinate with FBR for this purpose.

  • FBR urges consumers to provide sales tax deduction by unregistered persons

    FBR urges consumers to provide sales tax deduction by unregistered persons

    ISLAMABAD: Federal Board of Revenue (FBR) has urged consumers to provide invoices showing deduction of sales tax by unregistered persons.

    The FBR on Friday appealed the people to file complaints against charge of sales tax by unregistered businessmen.

    “The consumers’ are encouraged to send the images of such invoices or report the matter to FBR for action,” said a statement.

    It said that the FBR had issued a circular which has stated that general public has reported complaints against the businessmen who are charging sales tax from consumers without being registered with FBR under the Sales Tax Act, 1990.

    It is, therefore, clarified that sales tax registration number (STRN) (thirteen digits) is issued to every person who is registered for sales tax purpose and only that person is authorized to change sales tax on his taxable sales except where goods fall under third schedule to the Sales Tax Act, 1990.

    A business which is not registered for sales tax and does not have an STRN is not authorized to charge sales tax on the invoice.

    It is advised in the public interest that an invoice which does not bear a valid STRN should not include any sales tax amount and if any sales tax amount is indicated, the customer is entitled to demand a sales tax invoice with STRN printed on it.

    FBR has further clarified that mentioning of NTN is not a substitute for STRN. In order to facilitate the general public and providing a check on abuse of system, FBR has installed a special help line for this matter.

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