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Category: Taxation

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  • LTO Karachi facilitates Tier-1 retailers in POS integration

    LTO Karachi facilitates Tier-1 retailers in POS integration

    KARACHI: Large Taxpayers Office (LTO) Karachi has facilitated Tier-1 retailers to resolve issues in installation of Point of Sale (POS), a statement said on Wednesday.

    In this regard the LTO Karachi established a fully automated, computerized and equipped with modern communication devices control room in order to implement POS Scheme announced by the Federal Board of Revenue and to resolve problems likely to arise during implementation course of POS.

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

    Officials at the LTO Karachi said that the control room team would monitor real-time activity of Tier-1 retailers and would register complaints for non-implementation of POS scheme or non-issuance of POS generated invoices.

    The team shall receive information, complaints from general public or higher authorities through telephone, email or post, regarding non implementation of POS or non-availability of POS Scheme in any retail outlet of any taxpayer.

    READ MORE: FBR announces winners of first POS prize draw

    The information shall be shared with concerned Enforcement Zone wherever necessary for their help and necessary action as per law and procedure.

    In order to give rapid response to queries and problems raised by general public and to deal with inactive POS machines in respect of taxpayers being assessed in this office, a Rapid Response Team under the leadership of Additional Commissioner.

    READ MORE: Prize scheme on invoices issued by retailers

    The Rapid Response Team shall conduct inspection of outlets of taxpayers and ensure implementation of POS Scheme. During the visit, each members of the team shall be courteous and shall act as per law and procedure.

    After visit of the business premises of the retailer and thorough examination of the information / complaint received, the Team through Focal Person (POS) shall submit Visit Report in this office depicting entire activity of the visit.

    The team shall provide assistance to the outlet management, if required by taxpayer, in implementation of POS Scheme.

    READ MORE: FBR launches prize scheme for POS customers

  • Sindh extends date for filing sales tax return

    Sindh extends date for filing sales tax return

    KARACHI: Sindh Revenue Board (SRB) on Wednesday extended the last date for making deposit and filing monthly sales tax return for January 2022.

    The SRB issued Circular No. 02/2022 for extension in the last date for e-deposit of Sindh sales tax for the tax period January 2022 and for e-filing of tax return for the tax period January 2022.

    The provincial revenue body allowed the registered persons, including the withholding agents covered by the provisions of the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014, to:

    READ MORE: Tax officials barred from direct freezing bank accounts

    — e-deposit the amounts of Sindh sales tax for the tax period January 2022 on or before Monday February 21, 2022

    — e-file their tax returns for the tax period January 2022 on or before Thursday February 24, 2022.

    READ MORE: SRB implements verification system for utility invoices

    The SRB also intimated the taxpayers that the Federal Board of Revenue (FBR) has developed a National Sales Tax return which is in the process of implementation.

    As agreed by FBR, this return is only applicable to FBR registered persons at this stage. FBR is in the process of consultation with the provinces for extension of the National Sales Tax Return to the Provinces.

    In view of above, in order to avoid any problem, all persons registered with SRB are requested to continue filing their Sindh sales tax returns in the form SST-03 on SRB portal i.e. http://e.srb.gos.pk in accordance with the provisions of the Sindh Sales Tax on Services Act, 2011, and the rules made thereunder.

    SRB shall advise SRB-registered persons when Single National Sales tax Return is fully developed by FBR / PRAL in consultation with the provinces and after proper user acceptance tests are carried out.

    Any departure from above advice may entail contravention proceedings by officers of SRB for non-filing of the prescribed return with SRB, which may lead to imposition of penalty and other related consequences.

  • FBR announces prize winners in second POS invoice balloting

    FBR announces prize winners in second POS invoice balloting

    ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday announced winners of second balloting of invoices issued by Point of Sales (POS) installed by Tier-1 retailers.

    Muhammad Aslam has been declared as winner of bumper prize worth Rs1 million in the second draw. The invoice declared for the bumper prize was issued by Tier-1 retailer i.e. Naheed Super Market.

    The revenue body also declared Syed Asim Ali and Asad Naeem Chaudhry for second prize of Rs500,000 each.

    For further details please download the second draw

    Meanwhile, the FBR announced four names for the winners of third prize of Rs250,000 each. The winners of third prize are included Muhammad Amir, Syed Ali Yawar, Mubashir Aftab Sheikh and Iftikhar Hussain.

    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.

  • Glitches mar filing of national sales tax return

    Glitches mar filing of national sales tax return

    LAHORE: The Federal Board of Revenue (FBR) has failed to rectify errors in national sales tax form as large number of taxpayers unable discharge their liabilities.

    Pakistan Tax Bar Association (PTBA) in a letter to the chairman of Federal Board of Revenue (FBR) highlighted the issues in the national sales tax return and demanded to extend the date for filing monthly returns for the months of December 2021 and January 2022.

    READ MORE: FBR further extends date for filing sales tax return

    Earlier this month the PTBA highlighted the issues. A committee comprising PTBA General Secretary Ch. Qamar uz Zaman and another person Zahid Ateeq Choudhry pointed out the following issues:

    »             Entering data in Annex-H is not functioning properly, especially, opening stocks are not available for consumption.

    »             Zero rated purchases for the month are not transferred in Annex-F for consumption, hence, creating discrepancy in relation to refund claim as well as income tax declaration.

    »             FASTER rules for pharma industry, which is made subject to zero rated regime through Finance (Supplementary) Act, 2022, are not given until the date. Hence, the industry is unable to file refund claims.

    READ MORE: Single sales tax return to eliminate fake, flying invoices

    »             Input invoices once claimed are again available for reclaim in Annex-A. Hence, double claim of same input tax shall cause loss to the revenue.

    »             Search option in Annex-A is limited to 100 invoices, only. It should search all invoices for the month so that hassle be reduced or eliminated.

    »             Reduce rate sales entered through “sales invoice template” are not validated due to error “rate id is missing” despite proper reduced rate is provided in relevant data field.

    »             Sales entered through “sales invoice template” are not editable.

    READ MORE: FBR launches sales tax return filing through single portal

    »             Option to undo “sales invoice template” once uploaded should be available, which helps in undoing mistake, especially in large number of invoices, presently have to be done one-by-one.

    »             Sales tax Withheld by Government departments are not still available for claim.

    »             In Annexure-C “Retail Consumer” Type is not available.

    »             Sales Related to POS along with manual entry sales without POS, if added through invoice management, manual entries are not loaded in Annexure-C.

    »             Exclusion from 8B in return column # 24 is not available, in many cases which does not fall in any of the STGO’s of POS integration but also disallowing the input credit as POS retailer.

    »             Exporter cum manufacturer, where refund amount or credit to be carried forwarded are shown in decimal.

    Issues in connection with Provincial Sales Tax Return for Services:

    READ MORE: Power of the Board and Commissioner to call for records

    »             The National Sales Tax Return is not transmitting data relating to supplies of goods to the taxpayers registered for sales tax on services despite the fact their suppliers have duly filed their National Sales Tax Returns, hence, service providers are deprived of their legitimate adjustable input tax claim.

    In the light of the aforesaid facts and legal exposition, the date of filing of Sales Tax Return for the Tax Period December-2021 and January-2022 should be extended up to February 25, 2022.

  • Gwadar Customs seizes opium worth Rs80 million

    Gwadar Customs seizes opium worth Rs80 million

    ISLAMABAD: The anti-smuggling team of Gwadar Customs Collectorate has confiscated a huge quantity of opium and a vehicle, which have worth of Rs80 million, a statement said on Tuesday.

    The Federal Board of Revenue (FBR) in the statement said that the Gwadar collectorate had made seizure in a successful operation on February 13, 2022.

    READ MORE: Peshawar Customs seizes narcotics worth Rs80 million

    In pursuance of a credible information, the ASO team of Collectorate of Customs, Gwadar has effected seizure of narcotics (255 KGs Opium) at Ganz in the wake of a long chase.

    During patrolling, Customs Staff spotted a coure car around Jiwani which was signaled to stop for search. However, the driver of the vehicle accelerated and attempted to take away the vehicle which was followed and intercepted at Ganz.

    READ MORE: FBR invites applications for 952 vacant posts in Pakistan Customs

    The driver of vehicle taking advantage of the darkness left the vehicle and fled away from the scene.

    However, the thorough search of the vehicle resulted in the recovery of 255 KGs of Opium. The recovered narcotics was later on shifted to Custom House, Gwadar.

    This Collectorate has lodged a FIR against the unknown persons and the proceedings have been initiated. The amount of the narcotics along with the seized vehicle in the international market comes to be Rs. 80 millions.

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

    The Chief Collector of Customs (Balochistan) Muhammad Sadiq & the Collector of Customs, Gwadar Ch.Muhammad Javaid have appreciated the feat of the Customs Staff and have congratulated them on seizure of narcotics.

    It is pertinent to mention that the FBR is following a policy of zero tolerance against smuggling and thereby has increased vigilance and surveillance of cargo movement across the border.

    READ MORE: FBR explains amendments to Customs Act 1969

    Finance Minister, Shaukat Tarin, has commended FBR for its successful anti-smuggling drive across Pakistan. Likewise, Chairman FBR/Secretary Revenue Division, Dr. Muhammad Ashfaq Ahmed has appreciated Member Customs (Ops) FBR, Syed Muhammad Tariq Huda, in ensuring zero tolerance against smuggling of all shades and grades. He further reiterated his unflinching resolve to fight the menace of smuggling across the country in order to maximize tax compliance.

  • Tax officials barred from direct freezing bank accounts

    Tax officials barred from direct freezing bank accounts

    KARACHI: The Sindh government has barred the officials of provincial tax authorities from freezing bank accounts for making tax recovery without approval.

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  • Tax offices fail to meet target of integrating retailers

    Tax offices fail to meet target of integrating retailers

    ISLAMABAD: The Federal Board of Revenue (FBR) has expressed annoyance over the lack of interest shown by field offices in integrating Point of Sale (POS) of Tier-1 retailers with the online tax system.

    According to an official document related to Tier-1 Retailers POS Integration – Third Quarter Targets (January 2022), the analyses revealed except for Large Taxpayers Office (LTO) Karachi and Regional Tax Office Bhawalpur, “none of the formations have achieved their assigned targets.”

    READ MORE: FBR issues list of 1,358 retailers for mandatory POS

    “This is an alarming situation which reflects negatively on the commitment on you formations,” the FBR informed the tax offices.

    The FBR directed Chief Commissioners Inland Revenue of tax offices to personally look into the state of affairs and ensure a healthy figure of Tier-1 Retailers POS Integration against the assigned monthly targets.

    READ MORE: Prize scheme on invoices issued by retailers

    The Member Inland Revenue – Operations has shown displeasure over the slow pace of integration of Tier-1 retailers, notified through Sales Tax General Orders (STGOs). “… These monthly targets are based on STGO and poor percentage of integration in January 2022 indicates lack of commitment of field formations both in integrating the Tier-1 retailers cleansing of STGOs list of taxpayers,” the official document added.

    READ MORE: FBR decides penal action against defaulting retailers

    According to the details, the tax offices were required to integrate 2828 Tier-1 retailers but those offices were able to integrate only 407 retailers during the month of January 2022.

    READ MORE: Imprisonment for retailers on tax integration failure

  • FBR launches forensic audit of WeBOC

    FBR launches forensic audit of WeBOC

    ISLAMABAD: The Federal Board of Revenue (FBR) has launched forensic audit of Web Based One Customs (WeBOC) to determine the accuracy and correct application of duty and taxes.

    In order to conduct forensic audit, the FBR invited firms for the assignment to conduct audit of the internal controls of WeBOC system for quality assurance for the year 2020/2021, 2019/2020 and 2018/2019.

    READ MORE: Peshawar Customs seizes narcotics worth Rs80 million

    The forensic audit is aimed at assuring that the mechanism of internal controls, business decisions, rules, policies, and procedures are well defined, correctly calculated, and if not then recommend possible solution/ way forward.

    It is meant to analyze that the systems in place are capable – fully automated with seamless integration of all Customs’ business processes.

    The applicant firm is expected to analyze the WeBOC’s capability in carrying out the day-to-day functions, its governance model, business rules, duty calculation across all regimes, correctness of information as an output, and security structures etc.

    READ MORE: No promotion of IRS officers without asset declaration

    The Internal Control Audit will identify the strengths and weaknesses as follows and recommend appropriate actions to FBR, namely:

    i. Whether the rates of Customs Duties, Additional Customs Duties and Regulatory Duties are properly and correctly fed vis-à-vis updated from time to time as applicable in the System?

    ii. Whether the WeBOC System correctly calculates and collect the duties as per statutory rates?

    iii. Review the feeding, calculation, and collection of domestic taxes i.e., Sales Tax, Withholding Tax and Federal Excise Duty at import stage.

    iv. Examine the correctness of feeding of Fifth Schedule in the WeBOC along with its conditions, when and where applicable.

    v. Whether rates of duties and taxes were updated in the WeBOC as and when legally changed since January 01, 2018?

    READ MORE: FBR announces sharp cut in sales tax on POL products

    vi. The firm will also examine and audit whether different SROs have been correctly fed/ updated in the System along with respective conditions. Any difference or deviation in the SROs feeding/ updating and application in the System will be reported accordingly.

    vii. Whether changes were made in the System with corresponding changes in the SROs from time to time in a correct and timely manner?

    viii. Whether Valuation Rulings (VRs) issued by the Directorate General of Customs Valuation have been properly entered into the System?

    ix. Whether the System correctly applies the VRs on the respective goods or not? The required audited period will be for a period of three years.

    Based on the indicated activities, the audit should: (i) map the involved internal control mechanisms; (ii) point out the main weaknesses of the involved internal controls; (iii) identify the main causes; and (iv) propose mitigation measures. The audit and subsequent recommendations should be both quantitative and qualitative considering efficiency and effectiveness of the system, its performance, and corresponding data (input)/ information (output) correctness – real-time and secured operations.

    READ MORE: IR offices to work on Saturdays for revenue target

    The FBR under the Component-II (Technical Assistance) of the Pakistan Raises Revenue (PRR) project requests the services of a reputable consulting firm to conduct a forensic audit of the WeBOC System of FBR for quality assurance through methodological testing.

    The WeBOC system was rolled out in 2012 and has been designed and developed as per the business requirements and vision of Customs i.e., paperless, end-to-end integration, minimum dwell time, 24/7 service, transparency, automated and simplified procedures, improved risk management system including automated feedback mechanisms, better controls, electronic filing, minimum interaction with trader and Customs authorities, efficient information management system, e-gates, online payment, and single window operations.

    The underlying idea was/ is to have compliance of international trade facilitation agreements and to develop Customs system in line with international good practices. It provides real time integration of clearing agents, traders, brokers, terminal operators, cargo handlers, shipping agents, bonded carriers, warehouses, airlines, and customs officials for the clearance of trade consignments.

  • Peshawar Customs seizes narcotics worth Rs80 million

    Peshawar Customs seizes narcotics worth Rs80 million

    ISLAMABAD: Collectorate of Appraisement, Peshawar Customs has seized narcotics worth Rs 80 million, said a press release issued on Saturday.

    The FBR said that continuing a relentless anti-smuggling drive, Pakistan Customs, Collectorate of Appraisememt Peshawar, Custom Station Torkham intercepted a Truck bearing Reg. No.RIJ-9175 coming from Afghanistan which resulted in recovery of foreign origin Charas 160-Kgs, Opium 15.50-Kgs and Cocaine 6.5 Kgs approximately valuing Rs 80 Million.

    READ MORE: FBR invites applications for 952 vacant posts in Pakistan Customs

    The narcotics were kept in the secret cavities of the Truck especially made for the purpose.

    The vehicle along with recovered narcotics and arrested driver have been brought to Custom House, Peshawar. An FIR has been lodged against the arrested driver and further investigations are in progress.

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

    It is pertinent to mention that the FBR is following a policy of zero tolerance against smuggling and thereby has increased vigilance and surveillance of cargo movement across the border.

    Finance Minister, Shaukat Tarin, has commended FBR for its successful anti-smuggling drive across Pakistan.

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

    Likewise, Chairman FBR/Secretary Revenue Division, Dr. Muhammad Ashfaq Ahmed has appreciated Member Customs (Ops) FBR, Syed Muhammad Tariq Huda, in ensuring zero tolerance against smuggling of all shades and grades.

    He further reiterated his unflinching resolve to fight the menace of smuggling across the country in order to maximize tax compliance.

    READ MORE: FBR explains amendments to Customs Act 1969

  • No promotion of IRS officers without asset declaration

    No promotion of IRS officers without asset declaration

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday issued last warning to BS-18 officers of Inland Revenue Service (IRS), who are in promotion zone, and said without asset declaration and performance evaluation reports (PERs) their names will not be considered for promotion.

    The FBR previously issued letter to the officers in the seniority list on December 15, 2021 for completion of their PERs and Declaration of Assets.

    READ MORE: FBR issues instructions for promotions to higher ranks

    The recent scrutiny of personal record of said officers revealed that majority of the officers have not yet submitted their PERs and Declaration of Assets for the period ending on June 30, 2021.

    The meeting of Departmental Selection Board (DSB) for promotion of Inland Revenue Service from BS-18 to BS-I9 is being planned by March 15, 2022 where cases of officer of IRS from seniority No.1 to seniority No.52 shall be considered for promotion by the Departmental Selection Board.

    All aforesaid BS-18 officers of IRS in the promotion zone are once again asked to ensure that their PERs and Declaration of Assets up to June 30, 2021 are submitted to the Board latest by February 28, 2022 positively.

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

    Completion of PERs and submission of Declaration of Assets are the pre-requisites for promotion to selection grades under Civil Servants Promotion (BS-18 to BS-21) Rules, 2019.

    The Board is trying hard to ensure that all eligible officers be considered for promotion in the forthcoming DSB meeting. However, your cooperation in timely completion of service record is equally essential.

    READ MORE: FBR transfers Sardar Khwaja as Member Audit

    Any officer who fails to furnish the above documents by due date of February 28, 2022 will himself/herself be responsible for non-consideration/deferment/supersession, and no further reminder shall be issued in this regard.

    The Reporting/Countersigning Officer are also requested to immediately forward the PERs of the aforesaid officers to the Board (ERM Section) without any further delay.