Section 25A of the Sales Tax Act, 1990 authorized officer of Inland Revenue the authority to obtain samples of goods or raw materials for various purposes related to sales tax.
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FPCCI suggests FTO should deal with adjudication cases
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has suggested that the cases of tax adjudication should be handled by the Federal Tax Ombudsman (FTO).
The suggestion has been made to make adjudication more fair, neutral, transparent, and competent resolution.
According to a statement issued on Wednesday, the FPCCI President Mian Nasser Hyatt Maggo presented the suggestion while speaking on the occasion of Dr. Asif Mahmood Jah, FTO Pakistan, visit to FPCCI Head Office in Karachi.
He said that FPCCI appreciates FTO’s recent notice and report on the misuse of powers by the officials of the Federal Board of Revenue (FBR) in issuing fake notices and accessing the bank accounts of the taxpayers unnecessarily.
Maggo apprised the audience that it has been FPCCI’s longstanding demand to have a well-reputed, fearless, competent, and senior officer appointed as FTO Pakistan.
Highlighting the major issues with income tax cases, FPCCI President said that discrimination, delay, injustice, non-transparency and non-payment of refunds are plaguing the taxation system of the country and that is the reason FPCCI recommends sweeping reforms in the system.
Hanif Lakhany, Vice President FPCCI, said that the business community is, for the first time, feeling secure and protected against the tax and customs officials’ harassment and highhandedness; due to the fair redressal by the office of FTO. He also thanked the government for having the right man for the right job.
Nasir Khan, Vice President FPCCI, expressed his satisfaction over the performance of the office of FTO; but, maintained that the tax and customs authorities use time-delay and procrastinating tactics to avoid swift redressal of the issues of business, industry and trade community. In order to resolve these grievances, FTO should be given the authority to reprimand and punish corrupt officers.
FTO Dr. Asif Mahmood Jah apprised the audiences on the mandate and the performance of the Federal Tax Ombudsman.
He said that 90% of the complaints by the business community go in their favor on average. The complainants have the option of appealing to FTO or of even filing a representation with the constitutional office of the President of the Islamic Republic of Pakistan.
Dr. Asif Mahmood Jah added that FTO can not directly reprimand the tax and customs officials; but, he can make his observations on misuse of powers, maladministration, anomalies, harassment and corruption; and, those are taken seriously.
Another limitation of the FTO is that we can not take up cases that have been already taken up by any court of law and are subjudice. Explaining the other functions of the institution of FTO, Dr. Jah said that inspections, own-motion actions and research are also mandated.
Dr. Asif Mahmood Jah also stated that he wants to expedite the turnaround time for the resolution of complaints from 60 days to 60 hours. He also agreed to FPCCI’s demand of setting up help desks at FPCCI offices in Karachi, Lahore and Islamabad.
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PM Imran to launch online sugar monitoring on Nov 23
ISLAMABAD: Prime Minister Imran Khan will inaugurate the electronic monitoring of production and supply of sugar on November 23, 2023, a spokesman of the Federal Board of Revenue (FBR) said on Tuesday.
“PM will inaugurate the Track & Trace System (TTS) of FBR for sugar industry on November 23, 2021,” the spokesman said through a Tweet.
TTS will ensure electronic monitoring of manufacturing and sales of products of important sectors i.e tobacco, fertilizers, sugar and cement.
The FBR on November 11, 2021 taken a major step for electronic monitoring of sugar production and supply by banning the movement of sugar bags from mills.
The FBR banned the removal of sugar bags from mills without affixation of tax stamps / Unique Identification Marking (UIMs). The condition is applicable from November 11, 2021. The monitoring has been launched for sugar crushing season 2021/2022.
In this regard, the FBR issued Sales Tax General Order (STGO) No. 05 of 2021-2022.
The FBR said that sugar bags must have tax stamps, which are to be procured from FBR’s Licensee M/s. AJCL/MITAS/Authentix Consortium.
Previously, the FBR through a notification on February 26, 2019, issued rules for the implementation of the track and trace system. Further, in March 11, 2021 the revenue board issued a Sales Tax General Order (STGO) to notify that the monitoring system
According to the rules, all manufacturers of sugar products are warranted under the law to make necessary arrangements for importation of application and other equipment required for successful installation and implementation of track and trace systems at their production facilities.
The electronic monitoring would help the FBR to record the actual quantity of sugar production and utilization of raw material by the sugar millers.
By implementing the track and trace system, the FBR would get data of online monitoring from the sugar mills when they commence purchasing sugarcane from growers and start production of sugar products and subsequent selling to their dealers.
The FBR has planned online monitoring of production lines of five sectors, including tobacco products, beverages, sugar, fertilizer and cement.
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CNG valuation up by 84% for sales tax collection
The Federal Board of Revenue (FBR) in Pakistan has declared a substantial 84% increase in the valuation of Compressed Natural Gas (CNG) for the purpose of sales tax collection.
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FBR increases valuation of steel products
The Federal Board of Revenue (FBR) has implemented a significant change in the valuation of steel products, aiming to boost sales tax collection.
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WCO holds training for Pakistan Customs officers
World Customs Organization (WCO) in collaboration with International Narcotics and Law Enforcement Section (INL), held a training program from November 8 to November 12, 2021, for officers of the Pakistan Customs Service.
Directorate General of Training and Research (Pakistan Customs), Karachi has facilitated the conduct of the COPES-CECAC ‘Train the Trainer’ project.
The Custom Enforcement Curriculum for Assistant Collectors is in line with Customs Operational Practices on Enforcement and Seizures (COPES) and is aimed at developing effective, professional, and transparent law enforcement institutions in Pakistan and increasing the capacity of Pakistan Customs in the realm of enforcement in the light of international best practices.
The inaugural ceremony of the program was held at DGTR Karachi and was unveiled by Director General DGTR, Ms. Surraiya Ahmed Butt.
She thanked WCO and INL for their support in this training and termed Train the Trainer program as an important milestone in the enhancement of the capabilities of the Pakistan Customs Service.
DG DGTR hoped that the training of 12 officers from Pakistan will create a pool of instructors which would help in the capacity building of Pakistan Customs.
Gilles Thomas from WCO gave a detailed introduction about the COPES program highlighting the gaps that exist in the Customs Officers’ professional standards and how the CECAC project would be an effort to bridge that gap by developing an enforcement curriculum.
Later, Mark Kennedy from INL appreciated the working relationship with Pakistan Customs in the realm of training and expressed his desire to further strengthen this cooperation.
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Computation of income tax on profit and gains for SMEs
Fourteenth Schedule of Income Tax Ordinance, 2001 has described the rules for computation of income tax on profit and gains for Small and Medium Enterprises (SMEs).
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 is the text of Fourteenth Schedule of Income Tax Ordinance, 2001:
1. Application.- These rules shall apply to small and medium enterprises as defined in Clause (59A) of Section 2 of the Ordinance.
2. Registration.- Small and medium enterprise shall be required to register with FBR on its Iris web portal or Small and Medium Enterprises Development Authority on its SME registration portal (SMERP).
3. Categories and tax rates.- There shall be following two categories of small and medium enterprises and tax on their taxable income shall be computed at the tax rates given in the table below, namely:-
Sr. No. Category Turnover Rates (1) (2) (3) (4) 1. Category-1 Where annual business turnover does not exceed Rupees 100 million 7.5% of taxable income 2. Category-2 Where annual turnover exceeds Rupees 100 Million but does not exceed Rupees 250 Million 15% of taxable income 4. Option for Final Tax Regime.- (1) The small and medium enterprises may opt for taxation under final tax regime at the rates given in the table below:
Sr. No. Category Turnover Rates (1) (2) (3) (4) 1. Category-1 Where annual business turnover does not exceed Rupees 100 million 0.25% of gross turnover 2. Category-2 Where annual business turnover exceeds Rupees 100 million but does not exceed Rupees 250 million 0.5% of gross turnover (2) Option under sub-rule (1) of this rule shall be exercised at the time of filing of return of income and option once exercised shall be irrevocable for three tax years.
(3) The provisions of section 177 and 214C shall not apply to SME who opts for taxation under sub-rule (1) of this rule.
5. Audit.- (1) SMEs who opt for taxation under normal law under rule 3 may be selected for tax audit through risk based parametric computer ballot under section 214C of the Ordinance if its tax to turnover ratio is below tax rates given in rule 4 of these rules.
(2) The cases selected under sub-rule (1) of this rule shall not exceed 5% of the total population of SMEs whose tax to turnover ratio is below tax rates given in rule 4 of these rules.
6. Exports.- The export proceeds of SMEs shall be subject to tax as per rates prescribed in Rule (4) under final tax regime.”;
7. Exclusion from Minimum Tax on Turnover.- The provisions of section 113 of the Ordinance shall not apply to SMEs.
8. Tax on Supply of Goods.-The tax deductible under clause (a) of sub-section (1) of section 153 shall not be minimum tax where payments are received on sale or supply of goods by SMEs.
9. Provisions of Ordinance to apply.- The other provisions of the Ordinance shall apply mutatis mutandis to the SMEs.
(Disclaimer: The text of 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.)
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Tax credit for charitable donations under 13 schedule
Thirteenth Schedule of Income Tax Ordinance, 2001 has explained the tax credit for charitable donations.
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 is the text of Thirteenth Schedule of Income Tax Ordinance, 2001:
S. No. Name (1) (2) 1. any Sports Board or institution recognised by the Federal Government for the purposes of promoting, controlling or regulating any sport or game. 2. The Citizens Foundation. 3. Fund for Promotion of Science and Technology in Pakistan. 4. Fund for Retarded and Handicapped Children. 5. National Trust Fund for The Disabled. 6. Fund for Development of Mazaar of Hazarat Burn i Imam. 7. Rabita-e-lslami’s Project for printing copies of the Holy Quran. 8. Fatimid Foundation, Karachi. 9. Al-Shifa Trust. 10. Society for the Promotion of Engineering Sciences and Technology in Pakistan. 11. Citizens-Police Liaison Committee, Central Reporting Cell, Sindh Governor House, Karachi. 12. ICIC Foundation. 13. National Management Foundation. 14. Endowment Fund of the institutions of the Agha Khan Development Network (Pakistan listed in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and Agha Khan Development Network. 15. Shaheed Zulfigar Ali Bhutto Memorial Awards Society. 16. Iqbal Memorial fund. 17. Cancer Research Foundation of Pakistan, Lahore. , 18. Shaukat Khanum Memorial Trust, Lahore. 19. Christian Memorial Hospital, Sialkot. 20. National Museums, National Libraries and Monuments or institutions declared to be National Heritage by the Federal Government. 21. Mumtaz Bakhtawar Memorial Trust Hospital, Lahore. 22. Kashmir Fund for Rehabilitation of Kashmir Refugees and Freedom Fighters. 23. Institutions of the Agha Khan Development Network (Pakistan) listed in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and Agha Khan Development Network. 24. Azad Kashmir President’s Mujahid Fund,1972. 25. National Institute of Cardiovascular Diseases, (Pakistan) Karachi. 26. Businessmen Hospital Trust, Lahore. 27. Premier Trust Hospital, Mardan. 28. Faisal Shaheed Memorial Hospital Trust, Gujranwala. 29. Khair-un-Nisa Hospital Foundation, Lahore. 30. Sind and Balochistan Advocates’ Benevolent Fund. 31. Rashid Minhas Memorial Hospital Fund. 32. Any relief or welfare fund established by the Federal Government. 33. Mohatta Palace Gallery Trust. 34. Bagh-e-Quaid-e-Azam project, Karachi. 35. Any amount donated for Tameer-e-Karachi Fund. 36. Pakistan Red Cres-cent Society. 37. Sank of Commerce and Credit International Foundation for Advancement of Science and Technology. 38. Federal Board of Revenue Foundation. 39. The Indus Hospital, Karachi. 40. Pakistan Sweet Homes Angels and Fairies Place. 41. Al-Shifa Trust Eye Hospital. 42. Aziz Tabba Foundation. 43. Sindh Institute of Urology and Transplantation,SIUT Trust and Society for the Welfare of SIUT. 44. Sharif Trust. 45. The Kidney Centre Post Graduate Institute. 46. Pakistan Disabled Foundation. 47. Sardar Trust Eye Hospital, Lahore. 48. Supreme Court of Pakistan — Diamer Bhasha & Mohmand Dams — Fund. 49. Layton Rahmatullah Benevolent Trust (LRBT). 50. Akhuwat. 51. The Prime Minister’s COVIE)-19 Pandemic Relief Fund-2020. 52. Ghulam Ishaq Khan Institute of Engineering Sciences and Technology (GIKI). 53. Lahore University of Management Sciences. 54. Dawat-e-Hadiya, Karachi. 55. Baitussalam Welfare Trust. 56. Patients’ Aid Foundation. 57. Alkhidmat Foundation. 58. Alamqir Welfare Trust International. 59. Prime Minister’s Special Fund for victims of terrorism. 60. Chief Ministers(Punjab) Relief Fund for Internally Displaced Persons (1DPs) of KPK. 61. Prime Ministers Flood Relief Fund 2010 and Provincial Chief Ministers Relief Funds for victims of flood 2010. 62. Waqf for Research on Islamic History, Art and Culture, Istanbul. Provided that the Federal Government shall have the power to add, amend or omit any entry in this Schedule.
(Disclaimer: The text of 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.)
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Commissioner empowered to access sales record
Section 25 of Sales Tax Act, 1990 has explained commissioner empowered to access sales record.
The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.
Following is the text of section 25 of Sales Tax Act, 1990:
25. Access to record, documents, etc.– (1) A person who is required to maintain any record or documents under this Act or any other law shall, as and when required by Commissioner, produce record or documents which are in his possession or control or in the possession or control of his agent; and where such record or documents have been kept on electronic data, he shall allow access to the officer of Inland Revenue authorized by the Commissioner and use of any machine on which such data is kept.
(2) The officer of Inland Revenue authorized by the Commissioner, on the basis of the record, obtained under sub-section (1), may, once in a year, conduct audit:
(2A) For the purpose of sub-section (2) of section 25, the Commissioner may conduct audit proceedings electronically through video links, or any other facility as prescribed by the Board.
Provided that in case the Commissioner has information or sufficient evidence showing that such registered person is involved in tax fraud or evasion of tax, he may authorize an officer of Inland Revenue, not below the rank of Assistant Commissioner, to conduct an inquiry or investigation under section 38:
Provided further that nothing in this sub-section, shall bar the officer of Inland Revenue from conducting audit of the records of the registered person if the same were earlier audited by the office of the Auditor-General of Pakistan.
(3) After completion of Audit under this section or any other provision of this Act, the officer of Inland Revenue may, after obtaining the registered person’s explanation on all the issues raised in the audit shall pass an order under section 11.
(5) Notwithstanding the penalties prescribed in section 33, if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with default surcharge voluntarily, whenever it comes to his notice, before receipt of notice of audit, no penalty shall be recovered from him:
Provided if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with default surcharge during the audit, or at any time before issuance of show cause notice he may deposit the evaded amount of tax, default surcharge under section 34, and twenty five per cent of the penalty payable under section 33:
Provided further that if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with default surcharge after issuance of show cause notice, he shall deposit the evaded amount of tax, default surcharge under section 34, and full amount of the penalty payable under section 33 and thereafter, the show cause notice, shall stand abated.
Explanation.– For the purpose of sections 25, 38, 38A, 38B and 45A and for removal of doubt, it is declared that the powers of the Board, Commissioner or officer of Inland Revenue under these sections are independent of the powers of the Board under section 72B and nothing contained in section 72B restricts the powers of the Board, Commissioner or Officer of Inland revenue to have access to premises, stocks, accounts, records, etc. under these sections or to conduct audit under these sections.
(Disclaimer: The text of 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.)
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Customs I&I to auction old, used vehicles on Nov 17
ISLAMABAD: Directorate General of Intelligence and Investigation (I&I) – Customs, Islamabad has announced to auction old and used importer motor vehicles on November 17, 2021, at State Warehouse G-12/4, Kashmir Highway, Islamabad.
The directorate to hold the auction of the following imported motor vehicles:
01. Toyota Vitz Car, model 2008, chassis No. KSP90- 0039537, engine capacity 997-CC
02. Toyota Vitz Car, model 2007, Chassis No. 5CP90- 5076423, engine capacity 1300-CC
03. Toyota Corolla-XE-Saloon Car, Model 2000, Chassis No. AE100- 5353956, Engine Capacity 1498-CC
04. Honda Civic Car, Model 2008, Chassis No. 1I-IMFD36208 S206782, Engine Capacity 1339-CC
05. Toyota Fielder Car, Model 2008, Chassis No. NZE141- 9083339, Engine Capacity 1500-CC
06. Toyota Aqua Car, Model 2012, Chassis No. NHP10- 6083712, Engine Capacity 1500-CC
07. Toyota Mark- X Car, Model 2005, Chassis No. GRXI21- 1007202, Engine Capacity 3000-CC
08. Toyota Vitz Car, Model 2003, Chassis No.SCP13-0022928, Engine Capacity 1300-CC
09. Toyota Corona Car, Model 2003, Chassis No. 513153-5BN00E052406, Engine Capacity 1990-CC
10. Toyota Hilux Surf, Model 2005, Chassis No. R2N215- 0003755, Engine Capacity 2696-CC
11. Toyota Premio Car, Model 2010, Chassis No. ZRT260- 3074708, Engine Capacity 1800-CC
12. Honda Cross Road Jeep, Model 2007, Chassis No. RTI-1000765, Engine Capacity 1800-CC
13. Toyota Fielder Car, Model 2005, Chassis No. NZE121- 0300935, Engine Capacity I500-CC
14. Toyota Corolla XE-Saloon Car, Model 1995, Chassis No. AE110-5041078, Engine Capacity 1500-CC
15. Honda Steed Bike, Model 1994, Chassis No. NC26-1152720, Engine Capacity 400-CC
16. Honda Magna Bike, Model 1996, Chassis No. MC29-1013493, Engine Capacity 250-CC
17. Suzuki Jimmy Jeep, Model 1998, Chassis No. 11333W-104476, Engine Capacity 1298-CC
18. Toyota Mark-X Car, Model 2005, Chassis No. GRXI20-0030320, Engine Capacity 2499-CC
19. Toyota Axio Feilder Car, Model 2009, chassis No. NZE4I- 9125000, engine capacity 1300-CC
20. Toyota Prernio Car, Model 2009, Chassis No. ZRT261- 3009948, Engine Capacity 2000-CC
21. Honda Accord CL9 24TL, Model 2004, Chassis No. CL9-105I264, Engine Capacity 2400-CC
22. Mitsubishi Pajero GDI, Model 2000, Chassis No. 1477W-0205412, Engine Capacity I998-CC
23. Toyota Hilux Surf, Model 1999, Chassis No. RZN185- 9032918, Engine Capacity 2700-CC
24. Toyota Mark- X Car, Model 2006, Chassis No. GRXI20- 3045127, Engine Capacity 2500-CC
25. Suzuki Swift Car, Model 2007, Chassis No. ZCI IS- 186101, Engine Capacity I300-CC
26. Toyota Premio Car, Model 2005, Chassis No. ZZT240- 5040333, Engine Capacity I800-CC
27. Suzuki Swift Car, Model 2016, Chassis No. ZC725-105019, Engine Capacity 1300-CC
28. FJ Cruiser Jeep, Model 2011, Chassis No. JTEBUI1F20K120095, Engine Capacity 4000-CC
29. Toyota Premio Car, Model 2005, Chassis No. ZZT240- 0107683, Engine Capacity 1800-CC
30. Toyota Vitz F Car, Model 2008, Chassis No. SCP90-2052650, Engine Capacity 1296-CC
31. Honda Cross Road Jeep, Model 2007, Chassis No. RT2-1006248, Engine Capacity 1800-CC
32. Honda Cross Road Jeep, Model 2009, Chassis No. RT2-100129I, Engine Capacity 1800-CC
33. Toyota Rav-4, Model 1994, Chassis No. SXA10- 0016495, Engine Capacity 2000-CC
34. Toyota Aqua Car, Model 2012, Chassis No. NHP10- 2117995, Engine Capacity 1500-CC
35. Toyota Royal Saloon Crown Car, Model 2008, Chassis No. GRS200-0013088, Engine capacity 2500-CC
36. Audi A6 Car, Model 2012, Chassis No. WAU7774G3CN008140, Engine Capacity 2800-CC
37. Toyota Land Cruiser, Model 1999, Chassis No. VZ595-0065049, Engine Capacity 3378-CC
38. Toyota Aqua Car, Model 2013, Chassis No. NHP 10- 2263906, Engine capacity 1500-CC
39. Toyota Axio Car, Model 2006, Chassis No. NZEI41- 6015245, Engine Capacity 1500-CC
40. Honda Civic Reborn Car, Model 2008, Chassis No. JHMFD36208S210839, Engine Capacity 1339-CC
41. Toyota Prado Jeep, Model 1999, Chassis No. VZJ95-0093170, Engine Capacity 3378-CC
42. Toyota Axio Car, Model 2006, Chassis No. NZE141-6002343, Engine Capacity 1500-CC
43. Toyota RAV-4, Model 1997, Chassis No. SXA16-0022402, Engine Capacity 2000-CC
44. Suzuki Alto Car, Model 2005, Chassis No. HA25V-709375, Engine Capacity 658-CC
45. Toyota Vita Car, Model 2003, Chassis No. SCPI3-0010053 Model I296-CC
46. Toyota Vitz Car, Model 2005, Chassis No. KSP90-5012239, Engine Capacity 1000-CC
47. Suzuki Swift Car, Model 2014, Chassis No. ZC725-307324, Engine Capacity 1300-CC
48. Toyota Hilux Pick Up, Model 2004, Chassis No. 11P135626400008531, Engine Capacity 2500-CC
49. Honda Civic Car, Model 2003, Chassis No. BSI-1400838, Engine Capacity 1493-CC
50. Mercedes Benz E-240 Car, Model 2002, Chassis No. WD82100622B482811, Engine capacity 2400-CC
51. BMW Car, Model 2002, Chassis No. WBADE210X0BM83270, Engine Capacity 1990-CC
52. Mercedes Benz Car, Model 1994, Chassis No. WD8I400322A114335, Engine Capacity, 3696-CC
53. Mercedes Benz Car, Model 1994, Chassis No. WDB2020182F044548, engine Capacity 3696-CC