Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR rescinds 42 non-operational sales tax general orders

    FBR rescinds 42 non-operational sales tax general orders

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday rescinded 42 non-operational Sales Tax General Orders (STGOs).

    The FBR issued STGO 101/2019 and rescinded the following STGOs being non-operational, transposed to Sales tax Act, 1990 or Sales Tax Rules, 2006, with immediate effect:

    01. STGO No. 03/2004, Dated 12th June, 2004 related to consolidation of STGOs; desirable provisions being transposed to the Sales Tax Rules, 2006.

    02. STGO No. 04/2004, Dated 4th September, 2004, Amendment in STGO 3/2004

    03. STGO No. 01/2005, Dated 2ist April, 2005, e-filing of Sales Tax return at LTU, Karachi and Lahore – Redundant STGO

    04. STGO No. 02/2005, Dated 15th August, 2005, Amendment in STGO 1/2005.

    05. STGO No. 03/2005, Dated 1st September, 2005, Repayment of Sales Tax to Duty Free Shops on locally manufactured goods.

    6 STGO No. 04/2005, Dated 29th September, 2005, Special Procedure for collection and payment of S.T. on vehicles.

    07. STGO No. 01/2006 Dated 5th June, 2006, procedure for payment of S.T. against advance receipt.

    08. STGO No. 03/2006 Dated 28th July, 2006, issues relating to steel sector

    09. STGO No. 06/2006 Dated 8th September, 2006, Amendment in STGO 3/2006.

    10 STGO No. 01/2007 Dated 10th January, 2007, Mitigating the hardships of Islamabad based taxpayers.

    11. STGO No. 02/2007 Dated 6th February, 2007 Refund claims relating to local supply made by the five export oriented zero-rated sectors.

    12. STGO No. 03/2007 Dated 30th July, 2007 issues relating to Commercial Importers.

    13. STGO No. 04/2007 Dated 21st August, 2007 procedure for e-filing of ST returns.

    14. STGO No. 05/2007 Dated 25th August, 2007, payment of S.T. by Steel Melters and re-rolling mills operating on self-generation basis.

    15. STGO No. 06/2007 Dated 28th August, 2007, transfer of jurisdiction of collectorate of S.T. & FE now RTO, Rawalpindi to RTO, Islamabad.

    16. STGO No. 22/2008 Dated 26th June, 2008, revision of S.T. Rate, printing of retail price.

    17. STGO No. 32/2008 Dated 8th July, 2008 issues relating to solvent extraction units.

    18. STGO No. 1/2010 Dated 20th January, 2010 Fiscal relief to rehabilitate the economic life in NWFP, FATA, installment in arrears.

    19. STGO No.3/2010 Dated 27th January, 2010 Refund of Sales Tax by Customs Collectorate.

    20. STGO No. 11/2010 Dated 30th March, 2010, Delivery of sales tax registration certificates to registered persons of Gilgit Baltistan.

    21. STGO No. 18/2010 Dated 10th May, 2010, Input tax adjustment to Pakistani registered person against their purchases from AJK registered persons.

    22. STGO No. 19/2010 Dated 13th May, 2010 Filing and processing of expeditious refunds by IT system of FBR.

    23. STGO No.20/2010 Dated 1st July, 2010 Revision of Sales Tax rates w.e.f. 1st July, 2010 printing of retail price.

    24. STGO No.35/2010 Dated 23rd September, 2010 revision of Sales Tax rates w.e.f. 1st July, 2010 printing of retail price.

    25. STGO No.37/2010 Dated 24th September, 2010 Establishment of CSTRO.

    26. 26 STGO No.49/2010 Dated 30th November, 2010 revision of Sales Tax rates w.e.f. 1st July, 2010 printing of retail price.

    27. STGO No.50/2010 Dated 23rd December, 2010 revision of Sales Tax rates w.e.f. 1st July, 2010 printing of retail price.

    28. STGO No. 1/2011 Dated 8th January, 2011 filing and processing of expeditious refund by IT system of FBR.

    29. STGO No.3/2011 Dated 24th June, 2011 Revision of Sales Tax rates w.e.f. 1st July, 2011 printing of retail price.

    30. STGO No.4/2011 Dated 27th June, 2011, monitoring committee for the steel sector.

    31. STGO No.9/2011 Dated 26th August, 2011 Monitoring committee for the steel sector.

    32. STGO No. 10/2011 Dated 26th August, 2011 Monitoring committee for the steel sector.

    33. STGO No.28/2013 Dated 5th July, 2013 Revision of Sales Tax rates w.e.f. 13th June, 2013 Printing of retail price.

    34. STGO No.34/2013 Dated 16th August, 2013 Uniform procedure for action under sub-section (4) of Section 21 of the Act.

    35. STGO No.27/2014 Dated 18th March, 2014 Levy of 2 percent extra tax on the supply of auto parts and accessories, tyres and tubes etc.

    36. STGO No.66/2014 Dated 21st July, 2014 Collection of Sales Tax from retailers in terms of sub-section (9) of section 3 of the Act, read with SRO 608(I)/2014.

    37. STGO No.68/2014 Dated 11th August, 2014 Clarification regarding persons liable to be registered but not actually registered in terms of rule-2(3)(ii) of the Sales Tax Special Procedure (Withholding) Rules, 2007.

    38. STGO No. 117/2015 Dated 14th July, 2015 Procedure for issuance of STGOs for grant / withdrawal and rejection of zero-rating on electricity and gas to RPs falling under SRO 1125(I)/2011.

    39. STGO No. 18/2016 Dated 9th February, 2016 Procedure for adjustment of S.T. by Steel melters under sub-rule-2C of rule-58H.

    40. STGO No. 107/2016 Dated 20th September, 2016 Procedure for issuance of STGOs for grant / withdrawal and rejection of zero-rating on furnace oil, diesel oils and coal to RPs falling under SRO 1125(I)/2011.

    41. STGO No. 130/2016 Dated 2nd November, 2016 Processing of application of exemption under sr.no. 48 of table-1 of 6th schedule of the Act.(Grant in aid).

    42. STGO No. 144/2018 Dated 12th July, 2018 Procedure for adjustment of S.T. by Steel melters under sub-rule-2C of rule-58H.

  • Share market plunges by 447 points on massive selling in energy scrips

    Share market plunges by 447 points on massive selling in energy scrips

    KARACHI: The share market plunged by 447 points on Monday owing to massive selling in energy scrips.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,742 points as against 34,190 points showing a decline of 447 points.

    Analysts at Arif Habib Limited said that the market shed points heavily again, after a brief respite of +40 points earlier during the session.

    Concerns over release of Rs. 200 billion Sukuk for O&GMCs, and Power sector saw major bearing on these very sectors and aggressive selling was observed in both SNGP, PSO and HUBC.

    Traded volumes remained anemic today, ending the session just below 60 million mark at 59.5 million shares.

    Power Sector posted highest traded volumes at 10 million shares (mainly contributed by KEL with 7.4 million shares), however, HUBC impact the index more with 2.5 million shares traded at the bourse. Cement sector ranked second with 9.3M shares, mainly contributed by MLCF (4.4 million).

    Sectors contributing to the performance include Bans (-120 points), E&P (-77 points), O&GMCs (-556 points), Power (-37 points) and Cement (-30 points).

    Volumes increased slightly from 51 million shares to 59 million shares (+16 percent DoD). Average traded value increased by 26 percent to reach US$ 15 million as against US$ 11.9 million.

    Stocks that contributed significantly to the volumes include KEL, MLCF, TRG, BOP and DGKC, which formed 37 percent of total volumes.

    Stocks that contributed positively include FFC (+2 points), SYS (+2 points), THALL (+2 points), APL (+2 points) and MARI (+1pt). Stocks that contributed negatively include HBL (-53 points), PPL (-38 points), OGDC (-26 points), PSO (-25 points) and SNGP (-21 points).

  • Rupee falls by 37 paisas against dollar

    Rupee falls by 37 paisas against dollar

    KARACHI: The Pak Rupee fell by 37 paisas against dollar on Monday owing to higher demand for import and corporate payments.

    The rupee ended Rs157.32 to the dollar from last Friday’s closing of Rs156.95 in interbank foreign exchange market.

    The foreign currency market was initiated in the range of Rs157.00 and Rs157.50. The market recorded day high of Rs157.75 and low of Rs157.25 in interbank foreign exchange market.

    The exchange rate in open market also witnessed depreciation in the local currency value,

    The buying and selling was recorded at Rs156.50/Rs157.50 from last Saturday’s closing of Rs156.00/Rs157.00 in cash ready market.

  • Reduced sales tax rates on supply of gold, jewelry imposed

    Reduced sales tax rates on supply of gold, jewelry imposed

    The Federal Board of Revenue (FBR) has introduced significant amendments through the Finance Act, 2019, bringing gold, jewelry, and other precious articles into the sales tax ambit by implementing reduced rates on supplies.

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  • Traders call off protest on successful talks with Sindh governor

    Traders call off protest on successful talks with Sindh governor

    KARACHI: Karachi Tajir Ittehad on Sunday called off its three-day shutter down protest after successful meeting with Sindh Governor Imran Ismail.

    The small traders representing various markets of Karachi city a day earlier decided to shut down their shops for initially three days in order to force the government to accept their demands related to taxation.

    The traders had also demanded the federal government to replace Sindh governor.

    Sindh Governor Imran Ismail in the meeting with small traders apologized for his remarks related to collection of taxes.

    The governor assured the traders that the tax authorities would not take any adverse action against traders for next one month. He also assured the trade community for negotiations on taxation measures.

    At the meeting the trade associations presented their chartered of demand.

    The traders said that they were ready to talk with the chairman of Federal Board of Revenue (FBR). Till the meeting with the FBR chairman there will be no protest, the traders assured.

    They said that the negotiations with the FBR chairman would be successful and in case of failure the traders would have no other option but to shut down their businesses.

    The trade leaders including Jameel Pracha, Rizwan Irfan, Sheikh Alam, Hakeem Shaikh, Waqar Azeem and others were present at the meeting.

    Leader of trade community Jameel Pracha asked the market associations to open their business on Monday July 08, 2019.

  • Immovable property cannot be purchased without bank account: FBR

    Immovable property cannot be purchased without bank account: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) has barred purchase of immovable property by any persons making payment without banking channels.

    FBR sources told PkRevenue.com that in this regard amendment had been made to Income Tax Ordinance, 2001 in this regard.

    The sources said that amendment had been made to Income Tax Ordinance, 2001 which explained that immovable property valuing more than Rs5 million and other assets more than Rs1 million cannot be transferred without a bank accounts.

    The new section introduced through Finance Act, 2019 is reproduced as under:

    “75A. Purchase of assets through banking channel.

    (1) Notwithstanding anything contained in any other law, for the time being in force, no person shall purchase—

    (a) immovable property having fair market value greater than five million Rupees; or

    (b) any other asset having fair market value more than one million Rupees, otherwise than by a crossed cheque drawn on a bank or through crossed demand draft or crossed pay order or any other crossed banking instrument showing transfer of amount from one bank account to another bank account.

    (2) For the purposes of this section in case of immoveable property, fair market value means value notified by the Board under sub-section (4) of section 68 or value fixed by the provincial authority for the purposes of stamp duty, whichever is higher.

    (3) In case the transaction is not undertaken in the manner specified in sub-section (1),—

    (a) such asset shall not be eligible for any allowance under sections 22, 23, 24 and 25 of this Ordinance; and

    (b) such amount shall not be treated as cost in terms of section 76 of this Ordinance for computation of any gain on sale of such asset.”

  • Traders announces three-day shutter down protest against tax measures from July 08

    Traders announces three-day shutter down protest against tax measures from July 08

    KARACHI: Small traders have announced three-day shutter down protest in the commercial and financial hub of the country against the changes in tax regime, which are implemented through Finance Act, 2019.

    The Tajir Action Committee in a press conference on Saturday announced the shutter down across Karachi for three days starting from July 08, saying that the changes in tax regime are not acceptable.

    The committee presented its 11-point demands to the government and urged the authorities to withdraw or amend the laws to provide relief to small traders.

    Rizwan Irfan, the senior leader of the committee, said that in case the demands are not accepted the protest would prolong.

    Jameel Pracha, another leader, said that the decision to close down the markets was taken in consultation all traders association.

    The committee demanded abolishing value added tax and reducing turnover tax from 0.6 percent to 0.3 percent.

    Further the threshold of Rs10 million should be given for sales tax registration.

    The annual income of Rs1.2 million should be exempted from income tax.

    The condition of obtaining computerized national identity card (CNIC) should be relaxed up to sales of Rs50,000.

    The government should introduce a fixed tax regime for retailers. The proposed fixed tax should be introduced in four different categories.

    Income tax return forms should be introduced in Urdu language as well.

    Tax audits should be stopped.

    Mobile phone registration with the Pakistan Telecommunication Authority (PTA) should be stopped and a levy of Rs400 should be implemented.

    Abolish 10 percent regulatory duty on import of second-hand (used) cloths.

    The Tajir Action Committee also demanded to stop harassment by officials of Federal Board of Revenue (FBR). They also urged Army Chief to intervene in this situation.

    The traders demanded replacing the governor of Sindh.

    They said that the protest strike may prolong if their demands are not accepted.

  • FBR postpones implementation of new immovable property valuations

    FBR postpones implementation of new immovable property valuations

    ISLAMABAD: Federal Board of Revenue (FBR) has postponed the implementation of new valuation of immovable properties for major cities of the country for calculation of tax.

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  • FBR allows reduced duty rates for import of certain CBU vehicles

    FBR allows reduced duty rates for import of certain CBU vehicles

    KARACHI: Federal Board of Revenue (FBR) has allowed reduced rate of customs duty on import of certain automotive vehicles in Completely Built Units (CBUs) under Automotive Development Policy 2016-2020.

    Following are the automotive vehicles, which are granted reduced customs duty rates on import:

    1. Agricultural Tractors, having an engine capacity exceeding 26 kW but not exceeding 75kW (PCT code 8701.9220, 8701.9320) at 15 percent.

    2. Agricultural Tractors (other than mentioned at S. No. 1 above) (PCT Code 8701.9100, 8701.9400, 8701.9500) at 10 percent.

    3. Fully dedicated LNG buses (CBU) (PCT Code 8702.9030) at one percent

    4. Fully dedicated LPG buses (CBU) (PCT Code 8702.9040) at one percent

    5. Fully dedicated CNG buses (CBU) (PCT Code 8702.9050) one percent.

    6. Hybrid Electric Vehicle (HEV) (CBU) (PCT code 8702.2090, 8702.3090) at one percent.

    7. Hybrid Electric Vehicle (HEV) (CBU) (PCT code 8704.2214, 8704.2294, 8704.2340, 8704.3240) at one percent.

    8. Trailers (PCT code 87.16) at 15 percent

  • Aviation industry allowed duty free import of aircraft, spare parts

    Aviation industry allowed duty free import of aircraft, spare parts

    KARACHI: Federal Board of Revenue (FBR) has allowed duty free import of aviation related goods including aircraft and spare parts under National Aviation Policy 2015.

    According to Finance Act, 2019 following goods related to aviation have been allowed duty free import:

    1. Aircraft HS Code 8802.4000 at zero percent customs duty under condition whether imported or acquired on wet or dry lease. In case of M/s Pakistan International Airlines (PIA) Corporation this exemption shall be admissible on and from the 19th March, 2015.

    2. Spare parts Respective headings at zero percent for use in aircraft, trainer aircraft and simulators.

    3. Maintenance Kits Respective headings at zero percent for use in trainer aircraft (8802.2000 & 8802.3000).

    4. Machinery, equipment & tools respective headings at zero percent for setting up Maintenance, Repair & Overall (MRO) workshop by MRO company recognized by Aviation Division.

    5. Machinery, equipment, operational tools, furniture& fixture respective headings at zero percent on one time basis for exclusive use of New/Greenfield airports by company authorized by Aviation Division.

    6. Aviation simulators Respective headings zero percent on one time basis for aircrafts by airline company recognized by Aviation Division.

    The FBR said that for the purposes of this Part, the following conditions shall apply besides the conditions as specified in column (5) of the Table below:—

    (i) the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall certify that the imported goods/items are the company’s bonafide requirement. He shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). In already computerized Collectorates or Customs stations where the Pakistan Customs Computerized System is not operational, the Director Reforms and Automation or any other person authorized by the Collector in this behalf shall enter the requisite information in the Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis;

    (ii) the exemption shall be admissible on production of certificate by the Aviation Division, Government of Pakistan to the effect that the intending importer is operating in the country or intends to operate in the county in the airline sector;

    (iii) the list of imported items is duly approved by the Aviation Division, Government of Pakistan in line with Policy Framework approved by the Government of Pakistan;

    (iv) the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall furnish an undertaking to the customs authority at the time of import that the goods imported shall be used for the purpose as defined/notified by the Aviation Division, Government of Pakistan under the Aviation Policy; and

    (v) in case of deviation from the above stipulations, the Collector of Customs shall initiate proceedings for recovery of duty and taxes under the relevant laws.