236H. Advance tax on sales to retailers.— (1) Every manufacturer, distributor, dealer, wholesaler or commercial importer of pharmaceuticals, poultry and animal feed, edible oil and ghee, auto-parts, tyres, varnishes, chemicals, cosmetics, IT equipment, electronics, sugar, cement, iron and steel products, motorcycles, pesticides, cigarettes, glass, textile, beverages, paint or foam sector, at the time of sale to retailers“, and every distributor or dealer to another wholesaler in respect of the said sectors”, shall collect advance tax at the rate specified in Division XV of Part IV of the First Schedule, from the aforesaid person to whom such sales have been made.
(2) Credit for the tax collected under sub-section (1) shall be allowed in computing the tax due by the retailer on the taxable income for the tax year in which the tax was collected.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
ISLAMABAD: The Federal Board of Revenue (FBR) on Saturday urged the taxpayers to avail extended date and file their returns for tax year 2021 by October 15, 2021.
In a statement the FBR once again urged all the taxpayers, both old and new, to make the most of one-time extension of 15 days granted for filing of Income Tax Returns till October 15, 2021.
Therefore, they are advised to file their returns without delay as the given deadline is already fast approaching.
It is further reiterated that the timely filing of income tax returns would also save them from the hassles of system issues which may occur due to extraordinary traffic at the portal on the last day.
However, FBR has enhanced the capacity of its IT System to ensure that the IRIS software is properly working, round the clock.
The FBR believes in facilitation of taxpayers and accords top priority to resolve their issues. The extension in date for filing of return till October 15, 2021 was also aimed at alleviation of their hardships.
It is further reaffirmed that the extension given on September 30 was only due to the fact that FBR’s IT System got overloaded and since that has been fixed now and no more extension will be allowed beyond October 15, 2021.
ISLAMABAD: The single sales tax portal is likely to start functioning by end of October 2021 to facilitate taxpayers falling under all federal and provincial revenue jurisdictions.
In a statement, the Federal Board of Revenue (FBR) said that building further on its ongoing drive for digitization and automation of various processes involved in revenue collection, the FBR had developed “Single Sales Tax Portal” to facilitate the taxpayers and ensure the ease of doing business.
This watershed development of the Single Tax Portal developed by FBR is the outcome of various rounds of negotiations between FBR and the provincial revenue authorities.
The FBR has already offered this portal to the provincial revenue authorities in order to facilitate the taxpayers through one-link facility. The portal is in the final stages of testing and is likely to be launched by the last week of October, 2021.
This was a cumbersome task, which often led to complications and disputes over jurisdiction.
Single Sales Tax Portal will also help in simplification of the tax procedures. It will enable the taxpayers to save time and effort, and reduce their compliance costs. By minimizing data entry, it also addresses the issues of data and calculation errors.
The system will automatically apportion input tax adjustment as well as tax payments across the sales tax authorities. Through this system, officers of all revenue authorities will be able to make better informed decisions about matters related to Sales Tax.
The single portal system is a significant milestone towards taxpayers’ facilitation and a big leap forward towards harmonization of taxes between the Federal Government and the provinces.
This was disclosed at a meeting of Board-in-Council held recently.
The Board-in-Council meeting appreciated the comprehensive print and electronic media campaign launched by the FATE Wing which helped FBR receive massive number of 1.86 million returns September 30, 2021 generating tax of Rs39 billion with the returns.
The Board-in-Council members deliberated upon the decent growth of 38.3 per cent in revenue collection for the first quarter (July-September) of the current FY 2021-22 and conveyed their appreciation for the field formations.
The net revenue collection of Rs. 1,395 billion, exceeding the set target for the first quarter, has also been appreciated by the prime minister.
The Board-in-Council also devised a robust strategy to keep the same momentum of revenue collection in the second quarter starting (October to December) of the current Financial Year.
They expressed their strong resolve to collect substantial revenue in the second quarter and thus exceed target set for this period.
The members, particularly, mentioned about the impact created by the videos of national heroes and renowned celebrities appealing the general public through social media to file their returns within due date.
They thanked all the national heroes for their valued support in making this campaign highly successful. The members also lauded the initiative of FATE Wing to use all cellular companies for SMS outreach to the people to file their tax returns.
Furthermore, the Board-in-Council also decided to speed up the measures required to broaden the tax base, document the economy through POS and fast track implementation of Track and Trace System on Tobacco, Sugar, Fertilizers, Cement, Beverages, Petroleum and Pharmaceutical sectors.
236G. Advance tax on sales to distributors, dealers and wholesalers.— (1) Every manufacturer or commercial importer of pharmaceuticals, poultry and animal feed, edible oil and ghee, auto-parts, tyres, varnishes, chemicals, cosmetics, IT equipment, electronics, sugar, cement, iron and steel products, fertilizer, motorcycles, pesticides, cigarettes, glass, textile, beverages, paint or foam sector, at the time of sale to distributors, dealers and wholesalers, shall collect advance tax at the rate specified in Division XIV of Part IV of the First Schedule, from the aforesaid person to whom such sales have been made.
Advance tax on sale to distributors, dealers or wholesalers.
The rate of collection of tax under section 236G shall be as set out in the following table namely:-
TABLE S.No.
Category of Sale
Rate of Tax
(1)
(2)
(3)
1.
Fertilizers
0.7%
2.
Other than Fertilizers
0.1%
(2) Credit for tax collected under sub-section (1) shall be allowed in computing the tax due by the distributor, dealer or wholesaler on the taxable income for the tax year in which the tax was collected.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
KARACHI: The dollar depreciated by 34 paisas on Friday, closing at Rs170.53 in the interbank foreign exchange market. This marks a slight improvement for the Pakistani rupee, which had ended the previous trading session at Rs170.87 against the dollar.
236C. Advance Tax on sale or transfer of immovable Property.—(1) Any person responsible for registering, recording or attesting transfer of any immovable property shall at the time of registering, recording or attesting the transfer shall collect from the seller or transferor advance tax at the rate specified in Division X of Part IV of the First Schedule:
Explanation,—For removal of doubt, it is clarified that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing authority, housing society, co-operative society, public and private real estate projects registered/governed under any law, joint ventures, private commercial concerns and registrar of properties.
Provided that this sub-section shall not apply to a seller, being the dependant of a Shaheed belonging to Pakistan Armed Forces or a person who dies while in the service of the Pakistan Armed Forces or the service of Federal or Provincial Government, in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of or for services rendered by the Shaheed or the person who dies in service:
Provided further that if the seller or transferor is a non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who had acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan, the tax collected under this section from such persons shall be final discharge of tax liability in lieu of capital gains taxable under section 37 earned by the seller or transferor from the property so disposed of.
(2) The Advance tax collected under sub-section (1) shall be adjustable:
Provided that where immovable property referred to in sub-section (1) is acquired and disposed of within the same tax year, the tax collected under this section shall be minimum tax.
(3) Advance tax under sub-section (1) shall not be collected if the immovable property is held for a period exceeding four years.
(4) Sub-section (1) shall not apply to:—
(a) a seller, if the seller is dependent of:
(i) a seller, if the seller is dependent of:
a Shaheed belonging to Pakistan Armed Forces; or
(ii) a person who dies while in the service of the Pakistan Armed Forces or the Federal and Provincial Governments; and
(b) to the first sale of immovable property which has been acquired or allotted as an original allottee, duly certified by the official allotment authority.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
Section 236A of Income Tax Ordinance, 2001 describes the advance tax on sale through auction. The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021.
