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Category: Taxation

Stay updated on taxation news, tax laws, FBR policies, compliance, audits, income tax, sales tax, and fiscal developments in Pakistan.

  • Adjustment restrictions hamper return filing by retailers

    Adjustment restrictions hamper return filing by retailers

    Retailers falling under Tier-1 have informed the Federal Board of Revenue (FBR) that they were unable to file monthly sales tax returns due to denial of adjustment by IRIS portal.

    A number of retailers jointly sent a letter to FBR chairman apprising about unfavorable behavior of IRIS Portal by denying adjustment against credit notes issued by Tier-1 retailers.

    READ MORE: FBR announces winners of third POS invoice draw

    The retailers drew attention of the FBR chairman towards Section 9 of the Sales Tax Act, 1990 read with Rule 20 of the Sales Tax Rules, 2006, tax invoice issued by a registered person can be amended/modified/cancelled through issuance of credit note as a result of cancellation of supply of return of goods or a change in the nature of supply or change in the value of the supply.

    They highlighted that sales made by Tier-1 retailers, as defined in clause 43A of Section 2 of the Sales Tax Act, 1990, to the end consumers are integrated with the FBR computerized system for real time reporting of sales in line with the Rules.

    READ MORE: FBR identifies 1,421 retailers for tax integration

    The FBR chairman has been informed that in case of sales return, credit note (sales return invoice) is issued by Tier-1 retailers in accordance with the relevant provisions of the Sales Tax Act, 1990. “IRIS portal of the FBR is also accepting this position and accepting credit notes issued by Tier-1 retailers, however, surprisingly, sales tax adjustment, relating to credit notes, which have been allowed in one month are being added back in sales tax liability of the next month in the IRIS based sales tax return.”

    The retailers said: “… this practice of the sales tax return portal is strictly against the law.”

    READ MORE: FBR makes rules for sealing retail outlets

    They said that if such illegal restrictions are imposed on Tier-1 retailers, who have invested huge amounts in hardware as well as software for integration of sales tax reporting with the FBR, how would it be possible for the FBR to attract other retailers to get themselves registered with the FBR. “Instead of appreciating the efforts of Tier-1 retailers, they are being denied their legal and legitimate right of sales tax adjustment on credit notes.”

    Due to serious flaw in the online sales tax return filing portal, a majority of Tier-1 retailers are still unable to file sales tax return for the month of January 2022 onward.

    The FBR chairman has been urged to direct concerned authorities to resolve the issue at the earliest to enable Tier-1 retailers to submit their sales tax return.

    READ MORE: POS invoice verification for prize scheme surges by 63%

  • UAE favorite hiding for Pakistan assets: Dr. Ashfaq

    UAE favorite hiding for Pakistan assets: Dr. Ashfaq

    Dr. Muhammad Ashfaq Ahmed, the Chairman of the Federal Board of Revenue (FBR), has drawn attention to the United Arab Emirates (UAE) as a preferred destination for parking offshore undisclosed funds by Pakistan nationals.

    (more…)
  • FBR explains cash discount under sales tax laws

    FBR explains cash discount under sales tax laws

    ISLAMABAD: The Federal Board of Revenue (FBR) has explained cash discount related to invoices issued through Point of Sale (POS) by Tier-1 retailers.

    The FBR explained through an official note dated March 17, 2022 that cash discount has been allowed in the form of reduction of prices in seasonal sales / sales and the consideration in money is received after cash discount has been allowed.

    It is clarified that the value of supply for sales tax purpose is the actual value received in monetary terms excluding the amount of sales tax and not the gross value. “Hence, the sales tax will be calculated and charged on the actual or discounted price accordingly,” the FBR added.

    The FBR previously issued clarification in this regard through the official order dated October 13, 2021 on the standardized format of the sales tax invoice notified through SRO 1006(I)/2021 dated August 09, 2021.

    The revenue body said that representations from the taxpayers and bar councils were received seeking further clarification of the ‘trade discount’.

    It said that value of supply as per section 2 (46) of the Sales Tax Act, 1990 in respect of taxable supply means the consideration in money which the supplier receives from the recipient for that supply but excluding the amount of tax.

    In the previous explanation dated October 13, 2021, the FBR clarified that the discount if any to be given by a retailer has to be depicted on the invoice horizontally i.e. from left to right.

    READ MORE: Trade discount should be displayed on invoice: FBR

    “The captions such as total, sales tax, discount allowed appearing at the bottom of the invoice are standalone notations and do not necessarily add or subtract one another.”

  • FBR amends fresh property valuations for Islamabad

    FBR amends fresh property valuations for Islamabad

    ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday made changes to property valuation tables for the capital city.

    The FBR issued SRO 428(I)/2022 dated March 15, 2022 to a make amendment in the SRO 342(I)/2022 dated March 02, 2022.

    Through the latest SRO the FBR withdrew the property valuation tables for DHA Phase 1 – 5 and DHA Valley for both residential and commercial plots.

    READ MORE: FBR re-notifies valuation of immovable properties

    The following entries in the valuation tables have been deleted for residential immovable properties:

    62DHA Phase 1Any size30,000
    63DHA Phase 2Any size35,000
    64DHA Phase 2 ExtnAny size8,264
    65DHA Phase 3Any size16,529
    66DHA Phase 4Any size9,917
    67DHA Phase 5Any size19,835
    68DHA ValleyAny size8,264

    Similarly, following entries in the valuation tables have been deleted for commercial immovable properties:

    171DHA Phase 1Commercial plot23,900
    172DHA Phase 2Commercial plot22,200
    173DHA Phase 2 ExtnCommercial plot9,183
    174DHA Phase 3Commercial plot9,183
    175DHA Phase 4Commercial plot9,183
    176DHA Phase 5Commercial plot18,365
    177DHA ValleyCommercial plot2,755

    The FBR on December 01, 2021 issued fresh and updated valuation tables for around 40 major cities of the country. However, the FBR deferred the implementation of the new valuations of immovable properties till January 15, 2022 and further deferred till January 31, 2022. The FBR once again deferred the implementation on the valuation table till February 28, 2022.

    The revised tables of valuation of immovable properties have been issued and implemented on March 02, 2022.

    READ MORE: FBR allows 20-year old house value to open plot

  • FBR announces winners of third POS invoice draw

    FBR announces winners of third POS invoice draw

    ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday announced winners of third balloting of invoices issued through Point of Sale (POS) of retailers.

    According to the FBR, the bumper prize of Rs1,000,000 has been awarded to Nasreen Akhtar on the invoice issued by Save Mart.

    READ MORE: FBR announces prize winners in second POS invoice balloting

    The FBR announced winners of two second prizes of Rs500,000 each to Muhammad Sajid Aslam on the invoice issued by New Haji Super Store and Raheel Shahbaz on the invoice issued by Rahat Bakers.

    Similarly, the four winners of third prize amounting Rs250,000 each are Muhammad Shahid ur Rehman, Shahbaz Ahmad, Gul Niaz Bibi and Furqan.

    The FBR conduct computerized balloting of invoices issued by Tier-1 retailers on every 15th day of a month. This was third draw as it was started in January 15, 2022.

    The FBR encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.

    READ MORE: FBR announces winners of first POS prize draw

    The FBR previously issued a procedure for participating in the prize scheme.

    The revenue body said that the customers of the integrated tier-1 retailers, whose names and CNICs are notified through random computerized draw shall be entitled to prizes in respect of their purchases from the integrated tier-1 retailers.

    The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.

    READ MORE: Prize scheme on invoices issued by retailers

    The application shall notify the customer regarding the status of the invoice either as “verified” or “unverified”.

    In case of a verified invoice, the customer shall furnish one time, the following detail to the online system, namely:- Name; CNIC; and Mobile number.

    Names and CNICs of the customers shall be included in the random computerized draw upon fulfillment of the requirement.

    In case of an unverified invoice, the customer shall report the same through the system. The Board shall conduct inquiry and take appropriate action under the relevant provisions of law.

    READ MORE: FBR launches prize scheme for POS customers

    The computerized draw for the prizes shall be held in the first week of every month at the FBR Headquarters and the invoices of the immediately preceding month shall be entered in the draw.

    Draw winners shall be required to perform biometric verification, at the nearest e-sahulat facility of NADRA and submit a scanned copy on the “tax assan” application. After successful biometric verification, winners shall be required to provide their IBAN through a “tax asaan” application.

    The total prize money and the denomination of the prizes shall be decided on month to month basis by the Board.

  • Bazarcha Border, Taftan declared Pakistan Customs Port

    Bazarcha Border, Taftan declared Pakistan Customs Port

    The Federal Board of Revenue (FBR) has officially declared Bazarcha Border Terminal, Taftan, as a Pakistan Customs Board for the efficient clearance of goods.

    (more…)
  • Customs to auction confiscated vehicles on March 24

    Customs to auction confiscated vehicles on March 24

    ISLAMABAD: Pakistan Customs, Hyderabad Collectorate has announced auction of confiscated motor vehicles to be held on March 24, 2022 at State Warehouse Hyderabad and Sukkur.

    The collectorate will auction the following vehicles:

    READ MORE: Quetta Customs I&I to auction motor cars on March 17

    01. Foreign origin (F/o) Toyota Vitz Car, bearing registration No.AXS-962, chassis No.SCP90-0004026, H.P-1300CC, Model-2005.

    02. F/o Toyota Hiace Van, bearing registration number plate JF-6435, chassis No.RZH183-0002755, HP-2440 Model-2003.

    03. F/o NDP vehicle Swift Car, bearing registration number plate BAN-258, chassis No.ZC21S-155867, HP-1300CC Model-2007.

    READ MORE: Gwadar Customs auctions huge lot of vehicles on March 2

    04. F/o NDP vehicle Swift Car, bearing registration Number plate BDJ-190, Chassis No. ZC11S-180312, HP-1300 CC and Model 2006.

    05. F/o NDP Vehicle Toyota Prado TZ, Bearing Reg No. BF-9521, Chassis No. VZJ121-0004057, HP-3400 CC and Model 2002.

    06. Toyota Corolla GLi Car, bearing registration No.ANY-658, chassis No.ZZE121-9003367, HP-1500cc and Model-2005.

    07. F/o NDP Vehicle Toyota Land Cruiser Prado, Bearing Reg No.ZT-III, Chassis No.VZJ121-0002854, HP-3400cc and Model 2004.

    READ MORE: Customs to auction huge lot of motor vehicles on Feb 15

    08. F/o NDP Toyota Mark X car, bearing registration No. Plate AAP-240, chassis No.GRX121-1002004, HP-3000cc, Model-2004.

    09. F/o NDP vehicle Toyota Axio car, bearing registration No. Plate AAJ-661, chassis No.ZRE142-6007091, HP-1800cc, Model-2007.

    10. Toyota Vitz car, bearing registration No. Plate ARF-723, chassis No.JTGKW123203005557, HP-1300cc, Model-2004.

    11. F/o NDP vehicle Mitsubishi Mini Pajero, having registration No. plate JAF-393, chassis No.H58A-0202889, HP-660cc, Model- 2000.

    12. Toyota Corolla XLI Car, according to chassis No.NZE120-6023637, 1300cc manual transmission Model 2005 (but physically alter engine Automatic 1800cc) with fake registration No.AVP-916 (Accidential).

    13. F/o NDP vehicle Passo car, bearing registration No. Plate AVW-243, chassis No.KGC10-0040164, HP-1000cc, Model-2004.

    READ MORE: Customs I&I Multan to auction vehicles on February 09

    14. F/o NDP vehicle Passo car, bearing registration No. Plate AWX-953, chassis No.KGC10-0092870, HP-1000cc, Model-2005.

    15. F/o NDP vehicle Swift car, without registration No. Plate, chassis No.ZC11S-186500, HP-1300cc, Model-2007.

    16. F/o NDP vehicle Passo car, bearing registration No. Plate AXE-010, chassis No.KGC15-0002296, HP-1000cc, Model-2004.

    17. F/o NDP vehicle Passo car, bearing registration No. Plate AFY-971, chassis No.KGC10-0287554, HP-1000cc, Model-2009.

    18. F/o NDP vehicle Passo car, bearing registration No. Plate AYK-651, chassis No.QNC10-0002982, HP-1300cc, Model-2004 (As per inventory).

    19. F/o NDP vehicle Alto car, bearing registration No. Plate BQR-915, chassis No.HA36V-119134, HP-650cc, Model-2016.

    20. F/o NDP vehicle Aqua car, bearing registration No. Plate BEF-672, chassis No.NHP10-6082313, HP-1499cc, Model-2012.

    READ MORE: FBR exempts customs, regulatory duty on Afghan goods

    21. F/o NDP vehicle Alto Car, bearing registration No.BNQ-199, chassis No.HA36V-113529, HP-660cc, Model-2015.

    22. F/o NDP vehicle BMW Car, applied for registration, chassis No. WBANT12080CX30590, HP-4200CC, Model 2009 (As per Germany website) as per seat belt 2003.

    23. F/o NDP vehicle BMW 730 LI Car, bearing registration No. plate UN-68-421, chassis No.WBAKB220X0 CN74872, HP-2996CC, Model 2011(as per German webside).

  • Quetta Customs I&I to auction motor cars on March 17

    Quetta Customs I&I to auction motor cars on March 17

    ISLAMABAD: The Directorate of Intelligence and Investigation, Customs has announced auction of motor cars on March 17, 2022 to be held on Chaman Housing Scheme, Quetta.

    Following is the detail of motor cars to be presented for the auction:

    01. Carina Car (accidental & in poor condition), Chassis No. CT170-203846, Engine No. 1946537, Model 1991.

    02. Dahitsu Mira Car, Chassis No. JDAL2015000031905, Engine No. Not Traceable, Model 1994.

    READ MORE: Gwadar Customs auctions huge lot of vehicles on March 2

    03. Hino Trailer, Chassis No. FS3FKA-11822, Engine No. F20CE-17920, Model 1996.

    04. Land Cruiser (Cygnus Bullet Proof), Engine No. JTGCB09JX65002405, Engine No. N.T, Model 2006.

    05. Nissan Jeep, Chassis No. JLR50-004992, Engine No. N.T., Model 1998.

    06. Range Rover, Chassis No. SALLPAMJ3VA372646, Engine No. N.T., Model 1998.

    07. Toyota Corolla Altis Car, Chassis No. ZZE121-9012994, Engine No. 3ZZFE, Model 2005

    08. Toyota Corolla Car, Chassis No. EE90-0036489, Engine No. 2343412, Model 1991.

    READ MORE: Customs to auction huge lot of motor vehicles on Feb 15

    09. Toyota Corolla Car, Chassis No. KE55-766143, Engine N.T, Model N.T.

    10. Toyota Corolla Car (accidental & in poor condition), Chassis No. AE100-3209410, Engine No. N.T, Model 1993.

    11. Toyota Crown Majesta, Chassis No. UZS186-0011118, Engine No. 3UZ-FE, Model 2004.

    12. Toyota Fielder Car, Chassis No. ZZE122-0014947, Engine No. N.T, Model 2000.

    13. Toyota Hiace Van, Chassis No. JT721LHB300171861, Engine No. N.T, Model N.T.

    14. Toyota Hiace Van (accidental & in poor condition), Chassis No. LH61G-0008339, Engine No. 2L-1668916, Model 1982.

    15. Toyota Hiace Van (accidental & in poor condition), Chassis No. LH71B-0001253, Engine No. 2L-1043920, Model 1982.

    16. Toyota Land Cruiser, Chassis No. UZJ100-0117691, Engine No. 2UZFE, Model 2000.

    17. Toyota Land Cruiser, Chassis No. FJ45-240316, Engine No. N.T, Model N.T.

    READ MORE: Customs I&I Multan to auction vehicles on February 09

    18. Toyota Land Cruiser, Chassis No. JT111TJ3207404810 , Engine No. N.T, Model 1996.

    19. Toyota Land Cruiser Prado, Chassis No. VZJ195-0060970, Engine No. 5VZ-FE, Model 1999.

    20. Toyota Mark X Car, Chassis No. GRX120-0034825, Engine No. N.T, Model 2005.

    21. Toyota Mark X Car, Chassis No. GRX1211002280, Engine No. 3GRFSE, Model 2004.

    22. Toyota Mark-X Car, Chassis No. GRX121-1005643, Engine No. 3GRFSE, Model 2005.

    23. Toyota Mark-X Car, Chassis No. GRX120-0025640, Engine No. N/T, Model 2005.

    24. Toyota Mark-X Car, Chassis No. GRX120-0077315, Engine No. N.T, Model 2006.

    25. Toyota Premio Car, Chassis No. ZRT260-3025047, Engine No. N.T, Model 2017.

    26. Toyota Premio Car, Chassis No. ZZT240-0061554, Engine No. N.T, Model 2003.

    27. Toyota Premio Car, Chassis No.  ZZT240-0012752, Engine No. 1ZZFE, Model 2002.

    28. Toyota Sprinter Car, Chassis No. CE96-0092582 , Engine No. 1C, Model 1990.

    READ MORE: FBR exempts customs, regulatory duty on Afghan goods

    29. Toyota Surf, Chassis No. TRN215-0002810, Engine No. N.T, Model 2004.

    30. Toyota Vitz Car, Chassis No. SCP13-0037555, Engine No. 2SZFE, Model 2004.

    31. Toyota Vitz Car, Chassis No. SCP90-2067451, Engine No. 2SZFE, Model 2008.

    32. Nissan Skyline Car, Chassis No. HR34007067, Model N/T, Model 1999.

    33. Toyota Brevis, Chassis No. JCG10-0037382, Model N/T, Model 2001.

    34. Toyota Crown Car, Chassis No. GRS182-5000831, Model N/T, Model 2004.

  • Asem Iftikhar posted as DG Digital Invoicing, Analysts

    Asem Iftikhar posted as DG Digital Invoicing, Analysts

    ISLAMABAD: The Federal Board of Revenue (FBR) on Friday transferred Asem Iftikhar, a BS-20 officer of Inland Revenue Service (IRS) to the post of Director General, Directorate General of Digital Invoicing and Analysis.

    The FBR notified transfers and postings of Inland Revenue officers in BS-18 to BS-20 with immediate effect and until further orders.

    READ MORE: FBR transfers IRS officers BS-17 to BS-20

    Following IRS officers have been transferred:

    01. Asem Iftikhar (Inland Revenue Service/BS-20) has been transferred and posted as Director General (OPS), Directorate General of Digital Invoicing and Analysis, Islamabad from the post of Chief, (Admin Pool) Federal Board of Revenue (Hq), Islamabad.

    02. Hassan Zulfiqar (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Legal-III) Legal-IR Wing Federal Board of Revenue (Hq), Islamabad from the post of Chief, (Legal-II) Legal-IR Wing Federal Board of Revenue (Hq), Islamabad.

    READ MORE: FBR notifies transfer, posting of BS-19 IRS officers

    03. Asif Haider Orakzai (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (WHT) Directorate General of Withholding Taxes Federal Board of Revenue (Hq), Islamabad from the post of Chief, (OPS) (Legal-III) Legal-IR Wing Federal Board of Revenue (Hq), Islamabad.

    04. Faisal Asghar (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner-IR (OPS), Inland Revenue (Appeals-I), Faisalabad from the post of Additional Commissioner, Corporate Tax Office, Lahore.

    READ MORE: FBR transfers Sardar Khwaja as Member Audit

    05. Ms. Saima Munawar (Inland Revenue Service/BS-18) has been transferred and posted as Additional Commissioner Inland Revenue, (OPS) Regional Tax Office, Lahore from the post of Additional Director, (OPS) Addl. Directorate of Internal Audit (Inland Revenue), Quetta.

    06. Ms. Sadeea Nadeem (Inland Revenue Service/BS-18) has been transferred and posted as Additional Director, (OPS) Addl. Directorate of Internal Audit (Inland Revenue), Multan from the post of Additional Commissioner, (OPS) Regional Tax Office, Multan.

    The FBR said the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

    READ MORE: FBR transfers BS-20 IRS officers in major reshuffle

  • Tax collection from property purchase climbs up 24%

    Tax collection from property purchase climbs up 24%

    ISLAMABAD: The collection of advance tax from purchase of immovable properties climbed up by 24 per cent during first half of the current fiscal year.

    According to official data released by Federal Board of Revenue (FBR), the collection of advance tax on purchase / transfer of immovable property increased to Rs27.7 billion during first half (July – December) of fiscal year 2021/2022 as compared with Rs22.36 billion in the corresponding half of the last fiscal year.

    READ MORE: FBR registration made mandatory for housing projects

    The FBR collects advance income tax on purchase or transfer of immovable property under Section 236K of the Income Tax Ordinance, 2001. Under this Section 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 advance tax from purchaser or transferee at the rate of one per cent of the fair market value.

    READ MORE: Advance tax on purchase of immovable property

    The collection of withholding tax from income from property also recorded an increase of 12 per cent during the first half of the current fiscal year.

    The FBR collected withholding tax amounting Rs14.90 billion on income from property during first half (July – December) of 2021/2022 as compared with Rs13.32 billion in the corresponding half of the last fiscal year.

    The authorities collect withholding tax on income from property under Section 155 of the Income Tax Ordinance, 2001.

    READ MORE: Income tax on rental immoveable property