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Category: Taxation

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  • FBR starts processing income tax refunds of tax year 2020

    FBR starts processing income tax refunds of tax year 2020

    ISLAMABAD: Federal Board of Revenue (FBR) has started processing income tax refunds for the tax year 2020 and issued instructions in this regard.

    The FBR issued a notification to all the chief commissioners of tax offices stating that payment of refunds or adjustment of refund have identical financial impact for the exchequer and therefore, both warrant equal focus and application of mind so that no undue and undetermined refund is either paid out or adjusted to/by the taxpayers.

    The FBR said that in this connection, the data of income tax refund applications had been obtained from field formations/PRAL for tax year 2020, and examined.

    “The data transpire that out of the total refund claims of Rs74.313 billion in the tax year 2020, 6,073 applications covering an amount of Rs4.254 billion have been lodged,” the FBR said.

    The FBR told the chief commissioners that current year’s refund liability should be paid out of the current year’s revenue stream and that no due refund should be withheld.

    It would also help us ward off unnecessary complaints against us for delayed processing of refund applications and/or non-payment of refund to the taxpayers.

    Therefore, the tax offices are advised to dispose of all applications lodged under section 170 of the Income Tax Ordinance, 2001 by January 31, 2021.

  • MCC Quetta to auction 135 motor vehicles on December 28

    MCC Quetta to auction 135 motor vehicles on December 28

    KARACHI: Model Customs Collectorate (MCC) Quetta has announced auction of 135 motor vehicles on December 28, 2020.

    Following vehicles will be presented at the auction:

    1. Toyota Mark X, Chassis No. GRX120-0037293, Engine Type 4GR-FSE, Model 2005, 2500-CC, Color White.

    2. Nissan X Trail Jeep, Chassis No. NT30-020555, Model 2001, Color White.

    3. Nissan X Trail Jeep, Chassis No. NT30-077946, Engine No. QR20(DE), 1998-CC, Model 2003, Color Golden.

    4. BMW Car, Chassis No. WBADD42090BV14330, Engine Type M52, Model 1997, Color Black.

    5. Toyota Probox DX, Chassis No. QG10-011435, Engine No. DG18-347228, Model 2000.

    6. Nissan Car (Automatic), Chassis No. QG10-011435, Engine No. DG18-347228, Model 2000.

    7. Kawasaki Motorcycle, Chassis No. 8945A-1, Engine No. ZRT00DEO14545, Model 2007, HP-1000-CC, Color Black.

    8. DX Corolla Binjo, Chassis No. CE107-0006474, Engine No. NTA, Model 2000, Color Silver.

    9. Toyota Litace, Chassis No. CM30-0012463, Engine No. 2CT-080945, Model 1987.

    10. Car Saracha (RHD), Chassis No. AE100-0197878, Engine No. SHC194187, Model 1996, Color Trim.

    11. Saracha Car, Chassis No. GT196-0005336, Engine Type NTA.

    12. Toyota Pickup Single Cabin (LHD), Chassis No. YN57-0020059, Model 1984.

    13. Toyota Premio Car, Chassis No. ZZT240-0139308, Engine Type 1ZZFE, 1797-CC, Model 2007.

    14. Toyota Probox Car, Reg No. AZA-229 (FAKE), Chassis No. NCP58-0035251, Eng No. 1RZ8358229, Model. 2004 as per seat belt, Color. Silver, H/p. 1500cc as per trim plate.

    15. Toyota Altis, Chassis No. MRO53ZEE106113129, Model 2008, Engine No. 3ZZFE, 1600cc.

    16. Toyota Mark X, Chassis No. GRX120-0003526, Engine No. NTA, Model 2004, Color White, 2500-CC.

    17. Toyota Mark X, Chassis No. GRX120-0044423, Model 2005, Engine No. 4GR-FSE, 2500cc.

    18. Toyota Pickup S/Cabin (LHD), Chassis No. YN55-0003868, Engine No. 2Y-0351680, Model 1984.

    19. Toyota Mark X, Chassis No. GRX130-6040658, Engine Type: 4GR-FSE, Model 2011, 2500-CC, Color Black.

    20. Suzuki Alto Car, Chassis No. HA23S-708711, Model 2003, Engine K6A, 660cc.

    21. Trailer 14 Wheeler, along with 2x Containers, Chassis No. 0688058, Engine Type: 32233.

    22. Toyota Corolla Altis, Chassis No. MR053ZEE106126143, Engine No. 377-FE, Model No. 2008.

    23. Tractor with Trolley, Chassis No. 1436-89, Engine No. CE9706520610114K.

    24. Toyota Premio Car, Chassis No. ZZT240-0052728, Engine No. Nil, Model 2002.

    25. Toyota Hilux Surf, Chassis No. TRN215-0018085, Engine No. 2TR-FE, Model 2007.

    26. Mercedez Benz Car 02 Door, Chassis No.041173, Engine No. 15486372, 3975CC, Model 1977.

    27. Toyota Land Cruiser, Chassis No. UZJ200-4016488, Model 2008.

    28. Toyota Prius Car, Chassis No. ZVW30-1065825, Engine No. 2ZR-2541406, Model 2009.

    29. Toyota Vitz Car, Chassis No. SCP13-0042741, Engine No. 92301, Model 2004.

    30. Toyota Prado (Damaged), Chassis No. VZJ121-0008506, Model 2003.

    31. Toyota Premio Car, Chassis No. ZZT240-0143934, Engine No 1ZZFE 1794-CC, Model 2007.

    32. Toyota Hilux Surf, Chassis No. TRN215-0019386, 2700-CC, Model 2007.

    33. Toyota Land Cruiser Prado TX, Chassis No. VZJ120-0006306, Engine No. 5VZFE, 3400-CC, Model 2003.

    34. Nissan Navara Pickup, Chassis No. MNTCB4D23A0011839, 2298-CC, Model 2015.

    35. Toyota Fielder Car Chassis No.NZE121-0022209 Engine No. 1NZ-A1-80778, Model 2001.

    36. Toyota Vitz Car, Chassis No. SCP13-0031688, Engine No. 2SZFE, 1300-CC, Model 2004.

    37. Toyota Vitz Car, Chassis No. KSP90-5118205, Engine No. 1KRFE, 1000-CC, Model 2008.

    38. Toyota Passo Car, Chassis No. KGC30-0019245, Engine No. AKR-1072012, Model 2010.

    39. Toyota Probox Car, Chassis No. NCP51-0027271, Engine No. A735421, Model 2003.

    40. Toyota Fielder Car, Chassis No. NZE121-0211059, Engine No. 2653235, Model 2003.

    41. Toyota Vitz Car, Chassis No. SCP13-0020468, Engine No. 2SZFE, 1300-CC, Model 2002.

    42. Toyota X Corolla Car, Chassis No. NZE121-3366004, Engine No. 1NZFE, Model 2006.

    43. Toyota Fielder Car, Chassis No. ZZE122-0161681, Model 2004.

    44. Toyota Land Criuser Prado (03-Doors), Chassis No. VZJ90-0003895, Engine No. 5VZFE, 3400-CC, Model 1998.

    45. Toyota Prius Car, Chassis no. NHW20-3025436, Model 2004.

    46. Toyota Surf, Chassis No. VZN215-0003375, Engine No. 5E2-FE, 3400-CC, Model 2003.

    47. Toyota Passo Car, Chassis No. KGC10-0001215, Engine No. 1KRFE, 996-CC, Model 2004.

    48. Toyota Corolla Car, Chassis No. NZE121-0121392, Engine No. 1NZFE, 1496 CC, Model 2002.

    49. Toyota Passo, Chassis No. KGC30-0003935, Engine No. 1KR-036939, Model 2010.

    50. Toyota Passo, Chassis No. KGC30-0015515, Engine 1KR, 1000-CC, Model 2010.

    51. Toyota Corolla Car (Damaged), Chassis No. NZE121-3318881, Engine No. 1NZFE, 1496-CC, Model 2005.

    52. Toyota Surf, Chassis No. VZN215-0002124, Model 2002.

    53. Toyota Premio Car, Chassis No. ZZT240-0101456, Model 2005.

    54. Toyota Hilux Surf, Chassis No. RZN215-0005494, Engine No. 3RZFE, Model 2003.

    55. Toyota Vitz Car, Chassis No. NSP130-2059004, Engine No. 1NRFE, Model 2012.

    56. Toyota Land Cruiser Prado TZ, Chassis No. VZJ121-0007025, Engine No. 5VZFE, Model 2003.

    57. Toyota Corolla G Car, Chassis No. NZE121-3185873, Engine No. 1NZ-A735132, Model 2003.

    58. Toyota Probox Car, Chassis No. NCP51-0208603, Model 2008.

    59. Toyota Fielder Car, Chassis No. NZE121-3391952, Engine No. 1NZFE, 1496-CC, Model 2006.

    60. Toyota Hilux Surf, Chassis No. VZN185-0234248, Model 1999.

    61. Toyota Premio Car, Chassis No. ZRT260-3073025, Model 2010.

    62. Toyota Corolla G Car, Chassis No. NZE121-3201930, Engine No. A-814419, Model 2003.

    63. Toyota Vitz Car, Chassis No. NCP10-0171543, Engine No. 2NZFE, 1300-CC, Model 2002.

    64. Suzuki carry pickup, Chassis No. DC51T-405455, Model 1995.

    65. Toyota Vitz Car, Chassis No. NCP10-0185065, Model 2002.

    66. Toyota Vitz Car, Chassis No. KSP90-5110191, Model 2007.

    67. Toyota Probox Car, Chassis No. NCP51-0136114, Model 2006.

    68. Toyota Corolla Car, Chassis No. NZE121-3373033, Engine No. 1NZFE, 1500-CC, Model 2006.

    69. Toyota Land Cruiser Prado TZ, Chassis No. GRJ151-0001901, 4000-CC, Model 2010.

    70. Motorcycle BMW GS650, Chassis No. WB10218029ZT33715, Model 2008.

    71. Toyota Crown Car, Chassis No. AWS210-6031519, Engine No. 2ARFSE, 2493-CC, Model 2013.

    72. Toyota Land Cruiser Prado, Chassis No. GRJ121-0001861, Model 2006.

    73. Toyota Corolla X Car, Chassis No. NZE121-3365014, Engine No. 1NZFE, Model 2006.

    74. Zamyad Pickup, Chassis No. NAZPL140TH0465216, Model 1987.

    75. Zamyad Pickup, Chassis No. NAZPL140TH0464684, Model 2017.

    76. Zamyad Pickup, Chassis No. NAZPL140TIL182834, Model 1996.

    77. Suzuki Alto Car, Chassis No. HA35S-123859, Engine No. R06A, Model 2012.

    78. Zamyad Pickup, Chassis No. NAZPL140TG0448036, Model 2016.

    79. Toyota Probox Car, Chassis No. NLP51-0002178, Engine No. 1NDTV, Model 2002.

    80. Toyota Fielder Car, Chassis No. NZE121-0263427, Engine No. FEC-013761, Model 2003.

    81. Toyota Succeed RHD Car, Chassis No. NCP51-0070762, Engine No. 1NZFE, Model 2004.

    82. Toyota Succeed RHD Car, Chassis No. NCP51-0070243, Engine No. 1NZFE, Model 2004.

    83. Suzuki Swift Car, Chassis No. ZC72S-130221, Model 2011.

    84. Toyota Succeed RHD Car, Chassis No. NCP58-0041261, Engine No. 1NZFE, Model 2005.

    85. Toyota Probox RHD, Chassis No. NCP51-0051331, Engine No. 1NZFE, Model 2003.

    86. Toyota Premio Car, Chassis No. ZRT260-3065800, Engine No.2ZRFAE, Model 2010.

    87. Toyota Premio Car, Chassis No. ZRT260-3078070, Engine No. 2ZRFAE, Model 2011.

    88. Toyota Axio Car, Chassis No. NZE141-6081610, Engine No. 1NZFE, Model 2008.

    89. Toyota Corolla G Car, Chassis No. NZE121-3027157, Engine No. 1NZA-117680, Model 2001.

    90. Diana Mazda Truck, Chassis No. WGLAD-173340, Engine No. 5H-24700, Model 1992.

    91. Toyota Corolla Axio Car, Chassis No. NZE141-6016512, Engine No. 1NZFE, Model 2007.

    92. Toyota Land Cruiser ZX, Chassis No. URJ202-4092686, Model 2015.

    93. Toyota Premio Car, Chassis No. ZRT260-3016564, Engine No. 1ZZFE, Model 2007.

    94. Toyota Vitz Car, Chassis No. SCP90-5152945, Engine No. 2SZFE, Model 2010.

    95. Toyota Passo Car, Chassis No. KGC30-0041958, Engine No. 1KRFE, Model 2010.

    96. Toyota Premio Car, Chassis No. ZZT240-0140939, Model 2007.

    97. Toyota Premio Car, Chassis No. NZT260-3057756, Engine No. 1NZFE, Model 2009.

    98. Toyota Haice Wagon 09 Seater, Chassis No. TRH112-5004427, Engine No. 1TRFE, Model 2003.

    99. Toyota Fielder X Car, Chassis No. NZE121-0231993, Engine No. 1NZFE, Model 2003.

    100. Toyota Fielder X Car, Chassis No. NZE121-0299371, Engine No. 1NZB-234993, Model 2004.

    101. Toyota Corolla G Car, Chassis No. NZE121-3211944, Engine No. 1NA8565, Model 2003.

    102. Toyota Camry Car, Chassis No. AVV50-1015767, Engine No. 2ARFXE, Model 2012.

    103. Toyota Aqua Car, Chassis No. NHP10-6146566, Engine No. 1NZFXE, Model 2013.

    104. Toyota Corolla G Car, Chassis No. NZE121-3215083, Engine No. 1NZA870887, Model 2003.

    105. Toyota Corolla G Car, Chassis No. NZE121-3352487, Engine No. 1NZFE, Model 2006.

    106. Toyota Vitz Car, Chassis No. SCP90-5165408, Engine No. 2SZFE, Model 2010.

    107. Toyota Vitz Car, Chassis No. SCP13-0012428, Engine No. 2SZFE, Model 2003.

    108. Toyota Vitz Car, Chassis No. SCP90-5147174, Engine No. 2SZFE, Model 2010.

    109. Suzuki Swift Car, Chassis No. ZC72S-113698, Engine No. K12B, Model 2010.

    110. Toyota Vitz Car, Chassis No. SCP13-0003605, Engine No. 2SZFE, Model 2003.

    111. Toyota Fielder X Car, Chassis No. NZE141-9164775, Engine No. 1NZ-744601, Model 2010.

    112. Toyota Fielder Car, Chassis No. NZE121-0204866, Engine No. 1NZFE, Model 2003.

    113. Toyota Premio Car, Chassis No. ZZT240-0143720, Model 2007.

    114. Toyota Yaris Vitz Car, Chassis No. NCP90-2067396, Engine No. 2NZFE, Model 2008.

    115. Toyota Yaris Vitz Car, Chassis No. JTDKT3D350D602147, Engine No. 1NZFE, Model 2015.

    116. Toyota Aqua Car, Chassis No. NHP10-2056769, Engine No. 1NZFXE, Model 2012.

    117. Toyota Premio Car, Chassis No. ZRT260-3074250, Engine No. 2ZRFAE, Model 2010.

    118. Toyota Crown Hybrid, Chassis No. GWS204-0003051, Engine No. 2GRFSE, Model 2008.

    119. Toyota Prius Car, Chassis No. ZVW30-0139252, Engine No. 2ZRFXE, Model 2010.

    120. Toyota Premio Car, Chassis No. ZRT261-3006058, Engine No. 3ZRFAE, 2000 CC, Model 2008.

    121. Toyota Land Cruiser V8, Chassis No. UZJ100-01418865, Engine No. 2UZFE, Model 2002.

    122. Toyota Passo Car, Chassis No. KGC30-0002259, Engine No. 1KRFE, Model 2010.

    123. Toyota Probox Car, Chassis No. NCP51-0208458, Engine No. 1NZFE, 1500 CC, Model 2008.

    124. Toyota Vitz Car, Chassis No. SCP10-0366252, Model 2002.

    125. Toyota Land Cruiser Prado, Chassis No. GRJ151-0001037, Engine No. 1GRFE, Model 2009.

    126. Toyota Passo Car, Chassis No. KGC30-0022329, Model 2010.

    127. Toyota Land Cruiser, Chassis No. UZJ200-5046616, Engine No. 2UZFE, Model 2009.

    128. Toyota Corolla G Car, Chassis No. NZE121-3356046, Engine No. 1NZFE, Model 2006.

    129. Toyota FJ Cruiser Jeep, Chassis No. JTEBU11F50K191372, Model 2014.

    130. Dodge Caliber, Chassis No. IB3C34HAIAD583828.

    131. Toyota Hilux Surf, Chassis No. VZN215-0007318, Model 2005.

    132. Toyota Vitz Car, Chassis No. SCP13-0039838, Model 2004.

    133. Suzuki Jimny, Chassis No. JB33W-116173, Engine No. M13A-1099828, Model 2000.

    134. Toyota Crown Majesta Car, Chassis No. GRS128-1006069, Engine No. 3GR-FSE, Model 2005.

    135. Toyota Vitz Car, Chassis No. SCP90-5087763, Engine No. 2SZFE, Model 2008.

  • IR offices to observe extended working hours on December 31

    IR offices to observe extended working hours on December 31

    The Federal Board of Revenue (FBR) announced on Thursday that the offices of Inland Revenue will extend their working hours on December 31, 2020, until midnight.

    (more…)
  • FBR approves concession on electricity, gas supply to manufacturers

    FBR approves concession on electricity, gas supply to manufacturers

    The Federal Board of Revenue (FBR) has given its approval for a concessionary regime on the supply of electricity and gas to manufacturing units. The decision, announced in a notification issued on Wednesday, is set to benefit manufacturers and exporters who have been availing the zero-rating of sales tax under the rescinded SRO 1125(I)/2011 dated December 31, 2011.

    (more…)
  • Customs auctions big lot of non-duty paid vehicles on December 26

    Customs auctions big lot of non-duty paid vehicles on December 26

    KARACHI: Pakistan Customs has announced auction of a big lot of non-duty paid (NDP) and confiscated vehicles on December 26, 2020 at State Warehouses Model Customs Collectorates (MCC) Hyderabad and Sukkur.

    Following is the list of vehicles to be presented for the auction:

    01. Premio Car, Reg. No. ALP-100, Chassis No. NZT240-0049126, HP-1496 CC, Model-2003.

    02. Toyota Hilux Pickup, Reg. No. CG-7795, Chassis No. LN107-0000289, HP-2500 CC, Model-1991.

    03. Mitsubishi Pajero Jeep, Reg. No. BC-8606, Chassis No. V45-4503036, HP-3475 CC, Model-1998.

    04. Toyota X Corolla Car, Reg. No. ABB-726, Chassis No. NZE121-3021675, HP-1500 CC, Model-2000.

    05. Honda Civic Car, Reg. No. GS-7884, Chassis No. JHMFD16306S209631, HP-1330 CC, Model-2006.

    06. Honda Civic Car, Reg. No. AMA-541, Chassis No JHMFD163-06S211972, HP-1330 CC, Model-2006.

    07. Passo Car, Reg. No. AYL-523, Chassis No. KGC10-0124141, HP-996 CC, Model-2006.

    08. Toyota Vitz Car, Reg. No. AWJ-762, Chassis No. SCP90-5068687, HP-1300 CC, Model-2005.

    09. Passo Car, Reg. No. AXB-288, Chassis No. KGC10-0003456, HP-996 CC, Model-2004.

    10. Toyota Premio Car, Reg. No. AHH-716, Chassis No. ZZT240-0086451, HP-1800 CC, Model-2005.

    11. Toyota Royal Crown Saloon Car, Reg. No. BER-084, Chassis No. GRS180-5005980, HP-2499 CC, Model-2004.

    12. Toyota Vitz Car, Reg. No. AWT-419, Chassis No. SCP10-0443086, HP-1000 CC, Model-2003.

    13. Toyota Vitz Car, Reg. No. JS-325, Chassis No. NCP15-0038504, HP-1300 CC, Model-2005.

    14. Honda Civic Car, Reg. No. ARB-323, Chassis No-JHMFD-36208S202547, HP-1330CC, Model-2007.

    15. Hino Oil Tanker, Reg. No. SWA-020, Chassis No. FF147-29845, Model-1996.

    16. Premio Car, Reg. No. AMS-966, Chassis No. AZT240-0005261, HP-1800 CC, Model-2002.

    17. Swift Car, Reg. No. BGF-480, Chassis No. ZC11S-156533, HP-1300 CC, Model-2008.

    18. Toyota Vitz Car, Reg. No. AVJ-688, Chassis No. KSP90-004346, HP-1000 CC, Model-2005.

    19. Swift Car, Reg. No. BDT-319, Chassis No. JSAEZC21S00106922, HP-1330CC, Model-2005.

    20. Passo Car, Reg. No. AXB-466, Chassis No. KGC15-0018612, HP-1000CC, Model-2005.

    21. Lexus, Reg. No. AFE-767 (Islamabad), Chassis No. JTJHYOOWX04237603, HP-5700 CC, Model-2017.

    22. Toyota Vitz Car, Reg. No. AFR-2020, Chassis No. KSP90-5130780, HP-1000 CC, Model-2008.

    23. Swift Car, Reg. No. AXX-923, Chassis No. ZC11S-176926, HP-1300 CC, Model-2006.

    24. Toyota X Corolla Car, Reg. No. BCG-249, Chassis No. NZE121-3137839, HP-1496, Model-2002.

    25. Toyota Hilux Surf Jeep, Reg. No. BC-8087 (Sindh), Chassis No. RZN185-9020932, HP-2492 CC, Model-1998.

    26. Toyota Hilux Surf Jeep, Reg. No. RLD-101 (Rawalpindi), Chassis No. RZN185-9010109, HP-2693 CC, Model-1997.

    27. Toyota Vitz Car, Reg. No. AUR-222 (Sindh), Chassis No. KSP90-0038819, HP-996 CC, Model-2015.

    28. Daihatsu Mira Car, Reg. No. BMV-317, Chassis No. LA3005-1307088, HP-650 CC, Model-2015.

    29. Daihatsu Mira Car, Reg. No. BHQ-719, Chassis No. LA300S-1292331, HP-650 CC, Model-2013.

    30. Suzuki Kei Car, Reg. No. MS-557, Chassis No. HN22S729038, HP-660 CC, Model-2002.

    31. Toyota Axio Saloon Car, Reg. No. YB-311 (ICT-Islamabad), Chassis No. NZE141-6085401, HP-1490 CC, Model-2008.

    32. Toyota Vitz Car, Reg. No. AQU-166, Chassis No. KSP90-0013768, HP-997 CC, Model -2005.

    33. Suzuki Swift Car, Reg. No. AWA-156, Chassis No. ZC21S-105962, Model-2005.

    34. Toyota Vitz Car, Reg. No. AAQ-091, Chassis No. SCP90-503661, Model-2006.

    35. Toyota Fielder Car, Reg. No. D-3049, Chassis No. ZZE122-0198824, HP-1496 CC, Model-2005.

    36. Toyota Premio Car, Reg. No. BAL-721 (Sindh), Chassis No. ZRT260-3079531, HP-1797 CC, Model-2011.

    37. Mira Car. Reg. No. AGA-740, Chassis No. LA300S-1115847, Model-2012.

    38. Honda Civic Car, Reg. No. ADQ-086 (Sindh), Chassis No. ESI-1005496, HP-1590 CC, Model-2001.

  • Benami assets worth Rs7.4 billion detected; 78 percent contributed by Karachi Zone

    Benami assets worth Rs7.4 billion detected; 78 percent contributed by Karachi Zone

    ISLAMABAD: The Anti-Benami Zones established by the Federal Board of Revenue (FBR) have successfully detected benami assets totaling Rs7.4 billion, following thorough investigations in Karachi, Islamabad, and Lahore.

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  • FBR develops e-module for settlement of assessment cases

    FBR develops e-module for settlement of assessment cases

    ISLAMABAD: The IT Wing of Federal Board of Revenue (FBR) has developed e-module for settlement of assessment cases under Section 122D of Income Tax Ordinance, 2001.

    In an office memo issued to chief commissioners Inland Revenue (CCIR) of Large Tax Offices (LTOs), Medium Tax Office (MTO), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs), the FBR said that e-module of agreed assessment under Section 122D of Income Tax Ordinance, 2001 is available in IRIS.

    The FBR said that the option to avail the opportunity of agreed assessment is visible to taxpayers, who have been issued show cause notices under Section 122(9) of the Ordinance.

    The FBR directed the CCIRs to sensitize unit officers about the e-module and also aware legal fraternity and taxpayers about this addition in IRIS.

    The FBR further directed the CCIRs to provide information in respect of taxpayers, who opted for agreed assessment by 5th of every month along with details of number of cases applied, number of cases finalized and demand created in settlement cases.

    The CCIRs have also been directed to form assessment oversight committees at their tax offices and send details to the FBR by January 05, 2021.

    The Section 122D of the Ordinance has been introduced through Finance Act, 2020. Prior to the Finance Act, 2020 there was no mechanism under the Ordinance for negotiated settlement of tax disputes before finalization of an assessment/amended assessment.

    In order to facilitate taxpayers, reduce burden on the formal appeal system and effecting speedy recoveries, a new section 122D enabling agreed assessment has been inserted through the Finance Act, 2020.

    If a taxpayer intends to settle his case on or after receipt of a notice for amendment of assessment under section 122(9) of the Ordinance, he shall have the option of filing an offer of settlement in the prescribed form before the Assessment Oversight Committee for resolution of his dispute.

    In addition, the taxpayer shall also be obliged to file a reply in response to notice for amendment of assessment under section 122(9) of the Ordinance before the concerned Commissioner.

    The Assessment Oversight Committee shall comprise the Chief Commissioner Inland Revenue, the Commissioner Inland Revenue and the Additional Commissioner Inland Revenue having jurisdiction over the taxpayer.

    The Committee shall examine the offer of settlement and may also call for the record of the case. Moreover, the Committee shall have the mandate to accept or modify the offer of settlement of the taxpayer through consensus after affording the taxpayer an opportunity of being heard.

    In case, the Committee’s decision is acceptable to the taxpayer, the taxpayer shall be obliged to deposit the amount of tax payable, including penalty and default surcharge, in accordance with the decision of the committee pursuant to which the Commissioner shall amend the assessment in accordance with the decision of the committee.

    Moreover, in such instances, the taxpayer shall forego his right to file appeal against such amended assessment.

    In case, the Committee is unable to arrive at a consensus in respect of the offer of settlement or the taxpayer is not satisfied with the decision of the Committee, the concerned commissioner shall decide the case on the basis of reply filed by the taxpayer in response to notice of amendment issued under section 122(9) of the Ordinance.

    Cases involving concealment of income or interpretation of question(s) of law having effect on other cases have been ousted from the purview of the agreed assessments under section 1220 of the Ordinance.

  • FBR withdraws regulatory duty on cotton import

    FBR withdraws regulatory duty on cotton import

    The Federal Board of Revenue (FBR) has taken a significant step to boost the textile industry by withdrawing the five percent regulatory duty on the import of cotton yarn.

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  • Tax rate at 15 percent applicable on profit on debt: FBR

    Tax rate at 15 percent applicable on profit on debt: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday said that the general rate of tax is 15 percent on yield on investments. However, it is reduced at 10 percent where annual profit is below Rs500,000.

    The FBR issued Income Tax Circular No. 07 of 2020 to clarify tax rate under Section 151 of the Income Tax Ordinance, 2001.

    The FBR said: “General rate of tax deduction on profit on dent under Section 151 of the Income Tax Ordinance, 2001 is 15 percent of the profit.

    “However, provision to the Division IA of the Part III of the First Schedule to the Income Tax Ordinance, 2001, provides that tax rate shall be 10 percent in case where the taxpayer furnishes a certificate to the payer of the profit on debt that during the tax year, total yield or profit payable in this case shall remain at Rs500,000 or less.”

    The FBR said that queries had been received regarding the nature or format of the certificate.

    “The required certificate is to be furnished by the recipient of the profit on debt to the payer of such profit to the effect that total profit on debt received/receivable during the tax year from all investments in his case shall not exceed Rs500,000,” the FBR said, adding that the requisite certificate can be submitted on plain paper.

    According to the withholding tax card for tax year 2021 issued by the FBR, the profit on debt may be on account of deposit, account or a certificate under the National Saving Schemes or Post office savings account.

    Besides, the same rates shall be applicable on profit on debt paid by a banking company or financial institution on account or deposit maintained.

    Furthermore, the tax rates are also applicable on profit on bonds, certificates, debentures, securities or instruments of any kind (other than loan agreements between borrowers and banking companies or development financial institutions.

    The tax rate of 15 percent shall be increased by 100 percent to 30 percent for persons not appearing on Active Taxpayers List (ATL).

  • FBR directs conducting audit to cross match turnover

    FBR directs conducting audit to cross match turnover

    ISLAMABAD: Federal Board of Revenue (FBR) has directed field offices to conduct desk audit of returns filed for tax year 2020 to cross match turnover for avoiding misuse/mis-declaration.

    The FBR on Tuesday said that it had clarified on December 03, 2020 on ‘technical issue in filing of tax return 2020 dated December 03, 2020’ on a communication sent by Lahore Chamber of Commerce and Industry (LCCI).

    The LCCI had requested for clarification regarding the treatment of closing stock at the time of change of taxation regime from final to minimum tax.

    The FBR said that the chamber had pointed out in case of importers, the tax collected at import stage during tax year 2019 had come final tax at the time of collection, therefore, the turnover or income arising from the disposal of such closing stock should not be included in taxable income for tax year 2020 as this would result in double taxation.

    The FBR said that it had examined the matter. “The turnover resulting from disposal of closing stock already declared under Final Tax Regime (FTR) in previous tax year should not make part of next year’s turnover as it would be tantamount to double taxation. Therefore, such turnover should not be declared in the column of ‘subject to NTR [Normal Tax Rate] for tax year 2020.”

    The FBR further said: “In order to void misuse/mis-declaration, field formation, are required to conduct desk audit/audit of all such cases for tax year 2020 and cross match turnover with relevant sales tax declarations.”