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Author: Faisal Shahnawaz

  • Rate of tax on education fee during tax year 2022

    Rate of tax on education fee during tax year 2022

    The rates of income tax on education fee during tax year 2022 to be applicable under Second Schedule of Income Tax Ordinance, 2001.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following are the rates on sales to distributors that shall be applicable during tax year 2022 under Section 236I:

    The rate of collection of tax under section 236I shall be 5% of the amount of fee.

    Following is the text of Section 236I of Income Tax Ordinance, 2001:

    236I. Collection of advance tax by educational institutions.— (1) There shall be collected advance tax from a person not appearing on the active taxpayers’ list at the rate specified in Division XVI of Part-IV of the First Schedule on the amount of fee paid to an educational institution.

    (2) The person preparing fee voucher or challan shall charge advance tax under sub-section (1) in the manner the fee is charged.

    (3) Advance tax under this section shall not be collected from a person on an amount which is paid by way of scholarship or where annual fee does not exceed two hundred thousand rupees.

    (4) The term “fee” includes, tuition fee and all charges received by the educational institution, by whatever name called, excluding the amount which is refundable.

    (5) Tax collected under this section shall be adjustable against the tax liability of either of the parents or guardian making payment of the fee.

    “(6) Advance tax under this section shall not be collected from a person who is a non-resident and,—

    (i) furnishes copy of passport as an evidence to the educational institution that during previous tax year, his stay in Pakistan was less than one hundred eighty-three days;

    (ii) furnishes a certificate that he has no Pakistan-source income; and

    (iii) the fee is remitted directly from abroad through normal banking channels to the bank account of the educational institution.”

    (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.)

    Tax rates on sales to retailers during TY 2022
  • Tax rates on sales to retailers during TY 2022

    Tax rates on sales to retailers during TY 2022

    The rates of income tax on sales to retailers during tax year 2022 to be applicable under Second Schedule of Income Tax Ordinance, 2001.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following are the rates on sales to distributors that shall be applicable during tax year 2022 under Section 236H:

    The rate of collection of tax under section 236H on the gross amount of sales shall be 0.5%.

    Following is the text of Section 236H of Income Tax Ordinance, 2001:

    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.)

    Rates of tax on sales to distributors during tax year 2022
  • Rates of tax on sales to distributors during tax year 2022

    Rates of tax on sales to distributors during tax year 2022

    The rates of income tax on sales to distributors during tax year 2022 to be applicable under Second Schedule of Income Tax Ordinance, 2001.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following are the rates on sales to distributors that shall be applicable during tax year 2022 under Section 236G:

    The rate of collection of tax under section 236G shall be as set out in the following table namely:-

    TABLE

    S.No.Category of SaleRate of Tax
    (1)(2)(3)
    1.Fertilizers0.7%
    2.Other than Fertilizers0.1%

    Provided that the rate of advance tax on sale to distributors, dealers or wholesalers of fertilizer shall be 0.25%, if they are already appearing on both the Active Taxpayers’ Lists issued under the provisions of the Sales Tax Act, 1990 and the Income Tax Ordinance, 2001 (XLIX of 2001).

    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 SaleRate of Tax
    (1)(2)(3)
    1.Fertilizers0.7%
    2.Other than Fertilizers0.1%

    (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.)

    Tax on sale of immovable property during Tax Year 2022
  • Stock market gains 273 points in range-bound trading

    Stock market gains 273 points in range-bound trading

    KARACHI: The stock market ended with a gain of 273 points on Friday amid range-bound trading. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) ended at 46,219 points as against the previous day’s closing of 45,946 points.

    Analysts at Topline Securities said that the range-bound session was observed on the last trading session of the week as the index traded within a range of an intraday high of 273 points and intraday low of 265 points to close at 46,219 level and up by 0.6 per cent.

    Major contributions to the index came from LUCK, HBL, MLCF, CHCC and NML, as they cumulatively contributed 199 points to the index. On the other hand TRG, HUBC, MEBL, UBL and COLG lost value to weigh down on the index by 195 points.

    Traded volume and value for the day stood at 243 million shares and Rs9.67 billion respectively.

    HUMNL was today`s volume leader with 28 million shares.

    KSE-100 index gains 199 points amid thin volumes
  • KIBOR rates on October 29, 2021

    KIBOR rates on October 29, 2021

    KARACHI: State Bank of Pakistan (SBP) on Friday issued the following Karachi Interbank Offered Rates (KIBOR) on October 29, 2021.

     TenorBIDOFFER
    1 – Week7.227.72
    2 – Week7.267.76
    1 – Month7.317.81
    3 – Month8.108.35
    6 – Month8.618.86
    9 – Month8.769.26
    1 – Year8.939.43
    KIBOR rates on October 27, 2021
  • PMIC initiates action against 50 individuals, entities

    PMIC initiates action against 50 individuals, entities

    ISLAMABAD: Inspection Commission constituted by Prime Minister Imran Khan, in its first phase initiated proceedings against 50 individuals and entities nominated in the Pandora Papers.

    The proceeding is likely to expand in due course, said a press release on Thursday.

    The process will be concluded strictly in accordance with law and whenever necessary, enforcement powers would be invoked directly or through concerned law enforcement agencies.

    The Prime Minister Inspection Commission (PMIC) has commenced its proceedings regarding the Pandora Papers, the process for collection of information and data is underway.

    Since initial disclosure regarding offshore companies and trusts were made by ICIJ and its partner journalists, information and assistance is being sought from the said sources.

    The purpose of ongoing proceedings is to identify cases which may potentially involve any breach of law especially by present or past holders of public office.

    The task also includes referral of cases to the relevant authorities for necessary action from tax evasion or money laundering aspects.

    In order to maintain objectivity and fairness, the opportunity of representation in person or through written communication would be provided to the individuals who on the basis of available data are required to clarify their offshore ventures.

    PMIC would welcome information from the public and encourage whistle-blowers to come forward for disclosure in the interest of transparency.

    PM task force initiates proceedings in Pandora papers
  • Pakistan’s forex reserves fall to $23.934 billion

    Pakistan’s forex reserves fall to $23.934 billion

    KARACHI: The liquid foreign exchange reserves of Pakistan have declined by $393 million on weekly basis, according to statistics released by the State Bank of Pakistan (SBP) on Thursday.

    The foreign exchange reserves of the country declined to $23.934 billion by the week ended October 22, 2021, as compared with $24.327 billion a week ago.

    The foreign exchange reserves of the State Bank fell by $345 million to $17.147 billion by the week ended October 22, 2021 as compared with $17.492 billion by the week ended October 15, 2021.

    The foreign exchange reserves held by commercial banks have also come down by $48 million to $6.787 billion by the week ended October 22, 2021, as compared with $6.835 billion a week ago.

    SBP’s foreign exchange reserves fall by $1.64 billion
  • KSE-100 index gains 199 points amid thin volumes

    KSE-100 index gains 199 points amid thin volumes

    The Pakistan Stock Exchange (PSX) experienced a positive uptick on Thursday as the benchmark KSE-100 index gained 199 points, closing at 45,991 points from the previous day’s closing at 45,792 points.

    (more…)
  • LEAs to get cash reward under Customs Rules

    LEAs to get cash reward under Customs Rules

    ISLAMABAD: Federal Board of Revenue (FBR) will give cash rewards to law enforcement agencies (LEAs) for recovery and confiscation of smuggled or non-duty paid goods under Customs laws.

    The FBR issued SRO 1398(I)/2021 dated October 20, 2021, and proposed to include law enforcement agencies (LEAs) in Customs Reward Rules, 2021.

    According to the draft amendment, the FBR proposed to include in reward rules the “officers and officials of other law enforcement agencies who assist Customs officers and officials or are actually instrumental in the seizure of smuggled goods and vehicles as confirmed by the respective collectorate of customs, for their meritorious conduct in such cases only after realization of part or whole of the duty and taxes involved in such cases.”

    At present, the eligibility for reward stated that cash reward shall be sanctioned under the rules to the following categories of persons in cases involving evasion of duty and other taxes, and confiscation of goods, namely:

    (a) officers and officials of Pakistan Customs Service for their contribution in such cases; and

    (b) informer providing credible information leading to such confiscation or detection, as the case may be.

    As per SRO 1386(I)/2012 dated November 26, 2021, the determination of reward has been explained as the amount of reward, in cases involving evasion of duty and other taxes, and confiscation of goods shall be determined in the following manner:

    01. Where the amount of customs duty and other taxes realized is Rs500,000 or less, the amount of reward shall be 20 per cent of the customs duty and other taxes.

    02. Where the amount of customs duty and other taxes realized is more than Rs500,000 but not more than Rs1,000,000, the amount of reward shall be Rs100,000 plus 10 per cent of the customs duty and other taxes in excess of Rs500,000.

    03. Where the amount of customs duty and other taxes realized is over Rs1,000,000, the amount of reward shall be Rs150,000 plus 5 per cent of the customs duty and other taxes in excess of Rs1,000,000.

    FBR announces waiver of penal surcharge
  • KE’s profit up by 161% on high tariff adjustment

    KE’s profit up by 161% on high tariff adjustment

    KARACHI: K-Electric Limited (KE), the power generating and supply company, on Thursday announced massive 161 per cent growth in net profit for quarter ended September 30, 2021, mainly surge in revenue in the shape of tariff adjustment.

    The profit after tax of the KE grew by 161 per cent to Rs2.9 billion for the quarter ended September 30, 2021 as compared with Rs1.11 billion in the same quarter of the last year.

    The company announced Rs0.11 as earnings per share (EPS) for the quarter under review as compared with Rs0.04.

    The revenue of KE exhibited sharp growth of 33 per cent to Rs114.14 billion for the quarter ended September 30, 2021 as compared with Rs85.55 billion in the same quarter of the last year.

    The sales of energy grew by 27 per cent to Rs86.92 billion for the quarter under review as compared with Rs68.40 billion in the same quarter of the last year.

    In the head of tariff adjustment, the revenue of the company recorded 58.72 per cent increase to Rs27.22 billion for the quarter ended September 30, 2021 as compared with Rs17.15 billion in the same quarter of the last year.

    Cost of sale grew by 36 per cent to Rs97.49 billion as against Rs71.68 billion.

    Operating expenses of KE recorded a significant increase to Rs1.81 billion for the quarter ended September 30, 2021 as compared with Rs338 million in the same quarter of the last year.

    PSO registers 120% growth in quarterly profits