27. Special Returns.– In addition to the return specified under section 26 –
(a) a person registered under this Act shall furnish special return within such date and in such form indicating information such as quantity manufactured or produced, purchases made, goods supplied or payment of arrears made, etc, for such period as the Board may, by a notification in official gazette, specify; and
(b) the commissioner may require any person whether, registered or not, to furnish a return (whether on his own behalf or as an agent or trustee) in a prescribed form and such person shall furnish the return not later than the date specified in this regard.
28. Final Return.– If a person applies for de-registration in terms of section 21, he shall before such de-registration, furnish a final return to the commissioner in the specified form in such manner and at such time as directed by the commissioner.
29. Return deemed to have been made.– A return purporting to be made on behalf of a person by his duly appointed representative shall, for all purposes, be deemed to have been made by such person or under his authority unless proved to the contrary.
Islamabad: The Federal Board of Revenue (FBR) has issued a stern warning to officials and officers, cautioning them against exerting political pressure in service matters and threatening them with dire consequences, including potential retirement.
26. Return.– (1) Every registered person shall furnish not later than the due date a true, complete and correct return in the prescribed form to a designated bank or any other office specified by the Board, indicating the purchases and the supplies made during a tax period, the tax due and paid and such other information, as may be prescribed;
Provided that the Board may, by notification in the official Gazette, require any person or class of persons to submit return on quarterly basis:
Provided further that the Board may, by notification in the official Gazette, require any person or class of persons to submit such return as may be prescribed annually in addition to the monthly return or quarterly return:
Provided also that the return filed electronically on the web or any magnetic media or any other computer readable media as may be specified by the Board shall also be deemed to be a return for the purpose of sub-section (1) and the Board may, by notification in the official Gazette, make rules for determining eligibility of the data of such returns and e-intermediaries who will digitize the data of such returns and transmit the same electronically under their digital signatures.
(2) omitted
(3) A registered person may, subject to approval of the Commissioner Inland Revenue having jurisdiction, file a revised return within one hundred and twenty days of the filing of return under sub-section (1) or, as the case may be, sub-section (2), or under clause (a) or clause (b) of section 27, to correct any omission or wrong declaration made therein:
Provided that the approval under this sub-section shall not be required if revised return is filed within sixty days of filing of return and either the tax payable therein is more than the amount paid or the refund claimed therein is less than the amount as claimed, under the return sought to be revised.
(4) Notwithstanding the penalties prescribed in section 33, if a registered person wishes to file revised return voluntarily along with deposit of the amount of tax short paid or amount of tax evaded along with default surcharge, whenever it comes to his notice, before receipt of notice of audit, no penalty shall be recovered from him:
Provided that in case the registered person wishes to deposit the amount of tax as pointed out by the officer of Inland Revenue during the audit, or at any time before issuance of the show cause notice, he may deposit the evaded amount of tax, default surcharge under section (34), and twenty five percent of the penalty payable under section 33 along with the levied return:
Provided further that in case the registered person wishes to deposit the amount after issuance of show cause notice, he shall deposit the evaded amount of sales tax, default surcharge under section 34, and full amount of leviable penalty under section 33 along with the revised return and thereafter, the show cause notice, shall stands abated.
(5) The Board may, by notification in the official Gazette, require any person or class of persons, for any goods of such description or class, to furnish such summary or details or particulars pertaining to the imports, purchases and supplies during any tax period or periods, in such format as may be specified.
26A. Omitted
26AB. Extension of time for furnishing returns. (1) A registered person required to furnish a return under section 26 may apply, in writing, to the Commissioner for an extension of time to furnish the return.
(2) An application under sub-section (1) shall be made by the due date for furnishing the return in terms of section 2(9) for the period to which the application relates.
(3) Where an application has been made under sub-section (1) and the Commissioner is satisfied that the applicant is unable to furnish the return to which the application relates by the due date because of–
(a) absence from Pakistan;
(b) sickness or other misadventure; or
(c) any other reasonable cause,
the Commissioner may, by order in writing, grant the applicant an extension of time for furnishing the return.
(4) An extension of time under sub-section (3) shall not exceed fifteen days from the due date for furnishing the return, unless there are exceptional circumstances justifying a longer extension of time:
Provided that where the Commissioner has not granted extension for furnishing the return under sub-sections (3) or (4), the Chief Commissioner may on an application made by the registered person for
extension or further extension, as the case may be, grant extension or further extension for a period not exceeding fifteen days, unless there are exceptional circumstances justifying a longer extension of time.
(5) An extension or further extension of time granted under sub-sections (3) or (4), as the case may be, shall not, for the purpose of charge of default surcharge under section 34, change the due date for payment of sales tax under section 6.
The Federal Board of Revenue (FBR) has demonstrated its commitment to maintaining integrity and accountability within its ranks by dismissing a director of the Directorate of Internal Audit – South (Customs), Karachi.
The Federal Board of Revenue (FBR) took decisive steps on Friday, announcing the transfer and posting of Ch. Muhammad Tarique, a BS-21 officer of the Inland Revenue Service (IRS), as the Chief Commissioner Inland Revenue at the Corporate Tax Office (CTO) Lahore.
Section 25AA of the Sales Tax Act, 1990 grants Inland Revenue (IR) officers the authority to determine the fair market value of supplies in transactions between associates.
The Federal Board of Revenue Foundation (FBRF) has officially opened applications for the position of Chief Executive Officer (CEO), with a deadline set for November 30, 2021.
14. Asad Masood, Principal Appraiser, Collectorate of Customs Appraisement (East), Karachi.
15. Ch. Babar Kabir, Principal Appraiser, Collectorate of Customs Exports, Karachi.
16. Ejaz Akhtar, Principal Appraiser, Collectorate of Customs (JIAP), Karachi.
17. Sadar Amin Farooqui, Principal Appraiser, Collectorate of Customs, Appraisement (PMBQ), Karachi.
18. Rao Gul Sher, Principal Appraiser, Collectorate of Customs (AIIA), Lahore.
The FBR said that the official would be on probation for a period of one year, extendable for a further period not exceeding one year, provided that if no order is issued by the day following the termination of the probationary period, the appointment shall deem to be held until further order.
The FBR further said that the posting notification will be issued separately and will assume charge of the post after issuance of the transfer/posting notification.
LAHORE: Foodpanda, an online food delivery platform, has welcomed the reduction in sales tax by Punjab Revenue Authority (PRA) to homechefs – people operating from their homes.
In order to create a favorable business environment, the PRA decided to reduce sales tax on services being charged on commissions for home-based chefs.
The rebate reduced sales tax from 16 per cent to 5 per cent, allowing better profitability and growth potential for home chefs operating on online food delivery platforms such as foodpanda.
Home chefs are essentially people operating out of their home kitchens who sell food through online platforms such as foodpanda. The online food delivery company currently has 5,000+ registered home chefs who have been taken on board after stringent routine checks for food hygiene, quality, safety, packaging, etc. The company’s aim is to increase the home chefs base in the next two years and take it up to 100,000 registered home chefs.
Nauman Sikandar, CEO foodpanda, while sharing his thoughts said: “A big thank you to the Punjab Revenue Authority (PRA) from foodpanda and our home chefs. The reduction in sales tax being charged on commissions for home-based chefs comes as a welcome respite.
“This move will help grow a new sector which has significant potential for financial and economic inclusion, specifically women economic empowerment. It would be ideal that other provinces also follow suit and implement the same for home chefs.”
Shahzadi Asghar, a registered home chef at foodpanda, while sharing her gratitude said, “It’s very difficult to do business in today’s situation, that too a home-based business. Thanks to foodpanda and PRA that sales tax is now reduced by 11 per cent which in turn has significantly improved our margins. I am now thinking to expand my food venture with this favorable initiative.”
The visionary step by the Punjab Government must be supported by other provinces as the sector continues to grow exponentially across the country.
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has said that the digital mode of payment for corporate expenses would disrupt business transactions; because almost all sales in the country are made on credit and this credit is secured through ‘post-dated’ cheques issued by buyers in favor of the sellers.
Mian Nasser Hayat Maggo, President FPCCI, in a statement on Thursday expressed dismay that the Federal Board of Revenue (FBR) continues to persist with the provisions of the ITO Third Amendment 2021; which seeks to compel companies to make payments for their expenses through digital mode instead of cross cheques; which is the prevalent mode for settling sale and purchase transactions in the country.
He also stated that he was shocked by news reports revealing serious ‘Conflict of Interest’ underpinning this provision of coercing companies to make payments digitally. It has been learnt that this proposal was initiated by a committee of the FBR; and, not by the FBR itself and that committee includes an owner of a B2B FinTech company; which provides software services for digital payments.
FPCCI Chief added that it was that owner of the FinTech Company and a member of that FBR committee as well; who proposed this idea and pushed it to be made part of the law, according to some other committee members.
Mian Nasser Hyatt Maggo added that FPCCI has taken note of FBR’s contention that “3rd party payments are highly prevalent in organized and informal sector whereby businesses do not use their own bank accounts when making payment for supplies and tell their own customers/transaction based informal investors to make direct payments to the principal supplier.
This is highly prevalent in supply chains and has become an accepted norm” FPCCI considers this as a fallacious argument, as such practice cannot be employed by a company as it has to deduct withholding tax on all payments that it makes and submit returns of tax withheld to the FBR, he added.
Mian Nasser Hyatt Maggo explained that a company can only indulge in such practice if it has an ‘Undeclared Business Account’ in a bank. In that case, any such delinquent company can continue to make payments digitally; despite the change in the law; as the bank account used is ‘undeclared’ anyway.
Mian Nasser Hyatt Maggo pointed out that, nowhere else in the world, bank cheques have been discontinued or businesses coerced to use digital mode of payment instead of bank cheques. FBR’s desire to outlaw use of bank cheques by companies is indeed a unique regulation. Digital payments are evolving in Pakistan and developed countries are way ahead in employing digital mode of payments, but they too, have not coerced companies or anyone else to limit or discontinue use of cheques, he added.
FPCCI President emphasized that it is abundantly clear that what the FBR enunciates as problems, that lead to leakage of revenue, pertain more to the non-corporate sector than the corporate sector. The question, therefore, is why companies are being subjected to this third degree? The obvious answer lies in vested interests influencing the FBR to promote a particular mode of business by one stroke of a pen, he added.
