Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Cash payment above Rs5 million for immovable property to attract penalty of 5pc of total value

    Cash payment above Rs5 million for immovable property to attract penalty of 5pc of total value

    KARACHI: A person who purchases immovable property having fair market value greater than Rs5 million through cash or bearer cheque then the person is liable to pay five percent of the value of immovable property as penalty.

    From tax year 2020 starting July 01, 2019 the purchase of immovable property has been prohibited through any bearer instrument or cash if its value is above Rs5 million.

    According to the FBR if a person commits offence than such person shall pay a penalty of five percent of the value of property determined by the Board under sub-section (4) of section 68 or by the provincial authority for the purposes of stamp duty, whichever is higher.

    A new section has been inserted in the Ordinance which provides that purchase of assets set as out below shall now only be made through a crossed cheque drawn on a bank or through a crossed demand draft or crossed pay order or any other crossed banking instrument –

    (a) Immovable property having fair market value greater than Rs05 million; (b) Any other asset having fair market value of more than Rs01 million.

    For the purpose of this section, the fair market value means the value notified by FBR under Section 68(4) of the Ordinance or the value fixed by the provincial authority for the purposes of stamp duty, whichever is higher.

    In the event, the transaction of purchase of the asset is not carried out in the manner prescribed above, such asset shall not be entitled for allowance of depreciation or amortization, as specified under the Ordinance.

    The amount paid other than in the specified manner shall not be regarded as cost under Section 76 of the Ordinance for the purpose of computing gain on disposal of such asset.

    In addition a penalty of five percent of the fair market value of the asset so purchased shall also be levied.

  • Consumers may not able to get 5pc sales tax rebate till FBR notification

    Consumers may not able to get 5pc sales tax rebate till FBR notification

    ISLAMABAD: General public may not be able to avail 5 percent rebate on their purchases until a notification is issued by the Federal Board of Revenue (FBR).

    Through Finance Act, 2019 a new proviso has been added wherein customers of Tier-1 retailers are entitled for pay-back up to 5 percent of sales tax involved in the sales tax invoice.

    This shall encourage the customers to demand sales tax invoice from registered retailers.

    “However, these provisions shall be applicable when the Board so notifies,” said the FBR in instructions to Inland Revenue offices regarding enforcing changes to sales tax laws made through Finance Act, 2019.

    The FBR informed the IR about changes made to regime of Tier-1 retailers.

    These changes are included option to pay 2 percent turnover tax has been withdrawn.

    Provisions relating to SRO 1125(I)/2011 under which zero-rate sales tax was available, have been omitted, thus subjecting textile and leather items to normal rate except for the integrated retail outlets for which the rate shall be 14 percent as per amendment in Eighth Schedule.
    Another new proviso aims at expanding the scope of real-time integration beyond textile and leather. These provisions shall become effective when the Board so notifies.

    After such notification, the input tax shall be reduced by 15 percent for retailers failing to integrate Point of Sales (POSs) in the prescribed manner, as provided in the newly inserted sub-section (6) in section 8B.

  • Raising loans on interest prohibited, SECP issues draft amendment to Shariah regulations

    Raising loans on interest prohibited, SECP issues draft amendment to Shariah regulations

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Thursday issued draft amendments to Shariah Governance Regulations, 2018 saying that raising loans on interest is prohibited.

    In regulation 11, the SECP proposed following amendments:

    “(ii) the collective amount raised as loan on interest whether long-term or short-term debt does not exceed thirty percent of the market capitalization or total assets of the company, knowingly that raising loans on interest is prohibited whatsoever the amount is;

    “(iii) the total amount of interest-bearing deposits and Shariah non-compliant investments, whether short-, medium- or long-term, shall not exceed thirty percent of the market capitalization of total equity or total assets of company knowingly that interest taking deposits and investments are prohibited whatsoever the collective amount is”;

    The SECP further proposed amendment:

    “Provided that the prevailing Shariah screening criteria of the Exchange for all shares Islamic index may be used only for the companies on the all shares Islamic index, and shall be replaced with the above criteria by 30th June 2020.”

    For disposal of Shariah non-compliant investments, the SECP proposed:

    “Shariah compliant companies shall divest the Shariah non-compliant investments above thirty per cent threshold within a period of one year or when the market value of the investment equals the cost of investment, whichever is earlier:

    “Provided that the Commission may, for reasons to be recorded in writing and subject to such conditions or restriction as it may deem fit to impose on recommendation of the Shariah Advisory Board, relax any of the requirements of this regulation in case of any difficulty arises in giving effect to any of the requirements of this regulation in a particular case, or class of cases.”

    In regulation 3, it is proposed:

    “Provided that the companies on PSX All Shares Islamic index shall be deemed to be Shariah compliant till December 31, 2019:

    “Provided further that for purpose of availing tax rebate, the Shariah compliant companies referred in the first proviso shall meet the criteria as prescribed in Income Tax Ordinance, 2001.”

  • CNIC condition not applicable on purchases below Rs50,000

    CNIC condition not applicable on purchases below Rs50,000

    KARACHI: The condition of providing CNIC details is not applicable on purchases up to Rs50,000 by a person, said Zeeshan Merchant, former vice president of Karachi Tax Bar Association (KTBA).

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  • SBP issues procedure for loans under PM’s Kamyab Jawan SME Lending Program

    SBP issues procedure for loans under PM’s Kamyab Jawan SME Lending Program

    KARACHI: The State Bank of Pakistan (SBP) on Thursday announced the official procedure for obtaining a loan under the Prime Minister’s Kamyab Jawan SME Lending Program, a flagship initiative aimed at empowering youth and small enterprises across the country.

    (more…)
  • Gold rate hits all time high at Rs82,000

    Gold rate hits all time high at Rs82,000

    KARACHI: The price of gold has reached to all time high at Rs82,000 per Tola in the local market, traders said on Thursday.

    The traders said that the price of one tola gold increased by Rs1700 to reach all time high of Rs82,000. One toal is measured at 1 kilogram is equal to 80 tola.

    The price of gold for 10 grams also increased by Rs1458 to reach at Rs70,302, according to Sarafa Bazar Karachi.

    The traders attributed the hike in price to increase in international price of bullion. In international market the gold increased by $24 to reach at $1420 per ounce.

    The traders said that in the local market people were investing in the gold due to strict monitoring of foreign currency and dull activity in stock market.

  • FBR meeting on July 12 to speed up action against Benami properties

    FBR meeting on July 12 to speed up action against Benami properties

    ISLAMABAD: In order to speed up action against Benami properties an important meeting is scheduled for July 12 (Friday) at Headquarter of Federal Board of Revenue (FBR).

    The meeting will presided over by Syed Shabbar Zaidi, Chairman, FBR and all the relevant officers of Benami Zones will attend the meeting.

    An office order circulated to the three Benami Zones, said that the phenomenon of Benami property was one of the major socio-economic malaise afflicting the national development, equitable distribution of resources and overall governance in the country.

    “In order to combat this menace the federal government has recently activated specialized Benami Zones at Karachi, Lahore and Islamabad, constituted various enforcement and adjudication authorities and promulgated rules for effective implementation of the Benami Property (Prohibition) Act, 2017.”

    The office order further said that to have initial introduction and orientation, develop understanding of the legal framework, appreciate roles and responsibilities and share knowledge on the subject for impartial, judicious and expeditious implementation of the Benami Transactions (Prohibition) Act, 2017 a meeting of all stakeholders had been scheduled on Friday July 12, 2019 at FBR HQs Islamabad.

    The officers, who will attend the meeting included: Commissioners Inland Revenue as approving authority of the three Benami Zones.

    Deputy Commissioners as initiating officers and Assistant Commissioners as administrators under Benami laws will also attend the meeting.

  • KSE-100 gains 35 points amid low volumes

    KSE-100 gains 35 points amid low volumes

    KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gained 35 points on Thursday to close at 33,875 points as against previous day’s 33,840 points.

    Analysts at Arif Habib Limited said that KSE-100 index has been on a losing streak with continuous slide in both volume and index level.

    Yesterday, the volumes reached an 8-yr low of 40 million, and today marked yet another low of 39.5 million shares. Cement sector led the volumes table with 5.4 million, followed by Engineering (5.1 million) and Chemical (3.7 million).

    Scrip wise activity shows DSL ranking top again with 4.4 million, followed by MLCF (2.7 million) and HUBC (2.2 million).

    Recent ouster of HUBC from Islamic indices is followed by an increase in trading volumes of HUBC. Market on close showed improvement in points table that resulted in index closing with +35 points.

    Sectors contributing to the performance include Banks (+42 points), Fertilizer (+15 points), O&GMC (+10 points), E&P (+9 points), Sugar (+2ts).

    Volumes decreased by 3 percent DoD to reach 39.5 million as against 40.6 million. Average traded value also decreased by 12.2 percent to reach US$ 9.1 million as against US$ 10.3 million.

    Stocks that contributed significantly to the volumes include DSL, MLCF, HUBC, LOTCHEM and TPL, which formed 34 percent of total volumes.

    Stocks that contributed positively include HBL (+33 points), ENGRO (+16 points), UBL (+14 points), POL (+9 points) and MCB (+8 points).

    Stocks that contributed negatively include MARI (-7 points), NATF (-5 points), MEBL (-5 points), INDU (-4 points) and HMB (-4 points).

  • Rupee depreciates by 61 paisas in interbank

    Rupee depreciates by 61 paisas in interbank

    KARACHI: The Pak Rupee ended down by 61 paisas on Thursday owing to demand for import and corporate payments.

    The rupee closed at Rs158.49 to the dollar as compared with previous day’s closing of Rs157.88 in interbank foreign exchange market.

    The foreign currency market was initiated at Rs158.40 and Rs158.70 in interbank foreign exchange market.

    The market recorded day high of Rs158.60 and low of Rs158.20 and closed at Rs158.47.

    The exchange rate in open market also witnessed depreciation in rupee value. The buying and selling of dollar was recorded at Rs158.50/Rs159.50 from previous day’s closing of Rs157.50/Rs158.50 in cash ready market.

  • Preventive officer awarded dismissal from service for misconduct

    Preventive officer awarded dismissal from service for misconduct

    ISLAMABAD: Federal Board of Revenue (FBR) has awarded major penalty of ‘dismissal from service’ upon Hassan Ashraf, preventive officer, posted at Model Customs Collectorate of Preventive, Karachi on the charges of misconduct.

    In a notification issued on Thursday the FBR said that Hassan Ashraf was appointed as Preventive Officer (BS-16) in the Model Customs Collectorate of Preventive, Karachi and he joined his duties in the Collectorate on March 07, 2018.

    According to terms and conditions of his appointment he was deputed for mandatory physical training scheduled from March 24, 2018 at Shaheed Benazir Bhutto Elite Police Training Centre, Razzakabad, Karachi.

    However, he did not join the training and thereafter he is continuously absent from duty.

    The above omissions / commission on part of the accused officer is tantamount to “misconduct” under rule 3(b) of the Government Servants (E&D) Rules, 1973.

    Several notices/Memo/Letters were issued to him to explain the reason of his un-authorized absence from mandatory training and duty but he did not respond at all.

    Therefore, the Collector, Model Customs Collectorate (Preventive), Karachi in his capacity as Authorized Officer served Show Cause Notice dated 16.11.2018 upon the accused officer.

    However, the accused neither submitted his written defence reply to the Authorized Officer nor appeared for personal hearing before the Authorized Officer. Therefore he failed to defend himself against the charges of “Misconduct” on his part.

    The Member (Admn)/ Authority, on the recommendations of Authorized Officer has therefore, imposed the major penalty of “Dismissal from Service” upon the accused Hassan Ashraf, Preventive Officer under Rule 4(1)(b)(iv) of the Government Servants (Efficiency & Discipline) Rules, 1973 with immediate effect.

    He shall have the right of Appeal as admissible in the Civil Servants (Appeal) Rules, 1977.