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Category: Taxation

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  • FBR organizes event to aware people about POS

    FBR organizes event to aware people about POS

    LAHORE: Federal Board of Revenue (FBR) has organized an event at Packages Mall, Lahore to create awareness among people about the Point of Sale (Linked Invoicing System) of FBR, a statement said on Saturday.

    The objective of this event was to apprise the people and the retailers about the installation and utility of Point of Sales (POS) machines at big retail outlets.

    Designated officers of FBR HQ led by Chief, Facilitation & Taxpayers Education Tehmina Aamer and included Secretary FATE Alam Zaib Khan and Secretary PR Adnan Akram Bajwa participated in the program.

    Lot of people showed keen interest in the activities of the program and appreciated the steps taken by FBR on Point of Sales (Linked Invoicing System).

    The people were informed as to how they could verify about their paid taxes through Tax Aasaan application. The retailers were convinced to get their businesses linked with Point of Sales Linked Invoicing system. The flyers containing information about Point of Sales and gifts were distributed to the people on the occasion.

  • FBR amends guidelines for performance allowance of BS-01-14 tax officials

    FBR amends guidelines for performance allowance of BS-01-14 tax officials

    KARACHI: Federal Board of Revenue (FBR) has delegated powers to head of respective field formations of approving performance allowance of BS-1 to BS-14.

    The FBR issued Circular No. 01/2020 dated February 06, 2020 and modified Guidelines for Performance Allowance -2015.

    The following amendment has been made to the Guidelines for Performance Allowance-2015 with immediate effect:

    “The power to process and finalize selection of officials of BS-1 to BS-14 for IJP Performance Allowance of officials is delegated to the respective heads of field formations. However, all the cases of litigation and arrears demand shall continue to be dealt at FBR HQ by the respective Wing.”

    The FBR said that in the light of above decision of the Board-In-Council’s meeting held on January 24, 2020, the IJP selection process and finalization of IJP cases with respect to BS-01-14 employees of field formations will rest with concerned field formation.

    Under the approval of respective head of field office such cases shall be processed and finalized keeping in view Guidelines for Performance Allowance -2015 under intimation to the board.

  • Educational institutions share information of persons paying annual fee above Rs200,000

    Educational institutions share information of persons paying annual fee above Rs200,000

    KARACHI: Educational institutions have provided details of persons paying over Rs200,000 annual fee to Federal Board of Revenue (FBR).

    Sources in the FBR said that the educational institutions had provided the details of persons paying annual fee of above Rs200,000 along with the withholding tax statement for the period July – December 2019.

    They said that the educational institutions are required to provide details of persons paying fees including their names, address, CNIC and amount tax withheld.

    The sources said that being withholding agents the educational institutions are required to file withholding statements biannually. The withholding statement for the period July – December 2019/2020 was due on January 31, 2020.

    The educational institutions are required to withholding tax under Section 236I of Income Tax Ordinance, 2001.

    Section 236I: Collection of advance tax by educational institutions.

    (1) There shall be collected advance tax at the rate specified in Division XVI of Part-IV of the First Schedule i.e. five percent on the amount of fee paid to an educational institution.

    (2) The person preparing fee voucher or challan shall charge advance tax under sub-section (1) in the manner the fee is charged.

    (3) Advance tax under this section shall not be collected from a person on an amount which is paid by way of scholarship or where annual fee does not exceed two hundred thousand rupees.

    (4) The term “fee” includes, tuition fee and all charges received by the educational institution, by whatever name called, excluding the amount which is refundable.

    (5) Tax collected under this section shall be adjustable against the tax liability of either of the parents or guardian making payment of the fee.

    (6) Advance tax under this section shall not be collected from a person who is a non-resident and,—

    (i) furnishes copy of passport as an evidence to the educational institution that during previous tax year, his stay in Pakistan was less than one hundred eighty-three days;

    (ii) furnishes a certificate that he has no Pakistan-source income; and

    (iii) the fee is remitted directly from abroad through normal banking channels to the bank account of the educational institution.”

  • Tax payable reduced to half on income from low cost housing projects

    Tax payable reduced to half on income from low cost housing projects

    KARACHI: The Federal Board of Revenue (FBR) has announced a significant tax incentive to promote affordable housing in Pakistan. According to official sources, the income tax on profits and gains earned by a person from low-cost housing projects shall be reduced by 50 percent.

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  • Sindh introduces 5% sales tax reduced rate for healthcare services

    Sindh introduces 5% sales tax reduced rate for healthcare services

    KARACHI: Sindh Revenue Board (SRB) on Thursday introduced a reduced rate sales tax at five percent for various healthcare services with compliance of certain conditions.

    The provincial revenue body issued notification SRB-3-4/7/2020 to announce the reduced rate at five percent instead of 10 percent. The normal sales tax rate on services prevailed in Sindh province is 13 percent.

    The SRB said that the reduced rate of five percent shall be available on the services provided or rendered by healthcare centers, gym or physical fitness centers, etc., who have submitted their option or election on Form G as prescribed under rule 42CC of the Sindh Sales Tax on Services Rules, 2011 and fulfill the limitation, conditions and restrictions prescribed in the provisos to sub-rules (4), (5) and (6) thereof.

    The SRB said that the reduced rate at five percent is to those services on compliance of conditions, included:

    01. The registered person electronically submits his election or option in Form G by the prescribed due date;

    02. The registered person installs Point of Sale (POS) machine for electronic issuance of the invoices or receipts and gets all such machines linked up with SRB web portal to the satisfaction of SRB;

    03. The registered person issues his tax invoices/bills of charges or receipts electronically and no tax invoice/bill of charges or receipts is issued otherwise except through the POS of the registered person; and

    04. Input tax credit/adjustment shall not be admissible.

  • SRB announces 5% sales tax reduced rate for personal care services

    SRB announces 5% sales tax reduced rate for personal care services

    KARACHI: Sindh Revenue Board (SRB) on Thursday announced a reduced rate sales tax at five percent for various personal care services with compliance of certain conditions.

    The provincial revenue body issued notification SRB-3-4/7/2020 to announce the reduced rate at five percent instead of 10 percent. The normal sales tax rate on services prevailed in Sindh province is 13 percent.

    The SRB said that the reduced rate of five percent shall be available on the services provided or rendered by such beauty parlours, beauty clinics, slimming clinics, body massage centers, pedicure centers etc. who have submitted their option or election on Form B as prescribed under rule 42C of the Sindh Sales Tax on Services Rules, 2011, and fulfill the limitations, conditions prescribed in the proviso to sub-rules (3A), (3B) and (4) thereof.

    The SRB said that the reduced rate at five percent is to those services on compliance of conditions, included:

    01. The registered person electronically submits his election or option in Form B by the prescribed due date;

    02. The registered person installs Point of Sale (POS) machine for electronic issuance of the invoices or receipts and gets all such machines linked up with SRB web portal to the satisfaction of SRB;

    03. The registered person issues his tax invoices/bills of charges or receipts electronically and no tax invoice/bill of charges or receipts is issued otherwise except through the POS of the registered person; and

    04. Input tax credit/adjustment shall not be admissible.

  • Anti-Benami transactions rules notified as per law: FBR

    Anti-Benami transactions rules notified as per law: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday said that Benami Transactions (Prohibition) Rules, 2019 has been issued in accordance with the law.

    The FBR issued a rebuttal on a news item published in a daily on February 5, 2020 about the issuance of Benami Transactions (Prohibition) Rules, 2019.

    FBR has explained that Benami Transactions (Prohibition) Rules, 2019 under Benami Transactions (Prohibition), Act, 2017 were notified through SRO. 326(l)/2019 dated 11th March, 2019 by Dr. Hamid Ateeq Sarwar, Additional Secretary (IRS/BS-21 Officer).

    He is also holding the charge of Member (IR-Policy), FBR (HQ) since 4th December, 2018 vide FBR’s Notification No. 2236-IR-I/2018.

    It is further clarified that all the Members of FBR hold the ex-officio rank of Additional Secretary as per Establishment Division’s Notification dated March 18, 1987.

    It is pertinent to mention at the time of issuance of instant SRO Mohammad Jehanzeb Khan (BS-22 officer of PAS) was holding the charge of Chairman, FBR / Secretary Revenue Division.

    After final vetting of Benami Transactions (Prohibition), Rules 2019 by Law & Justice Division and approval of the same by Cabinet Committee for Disposal of Legislative Cases (CCLC), the Summary containing the Benami Transactions (Prohibition) Rules, 2019 was moved by Mohammad Jehanzeb Khan Chairman, FBR / Secretary Revenue Division for the approval of Federal Cabinet.

    The whole process of issuance of SRO and initiation of Summary for approval of Federal Cabinet is in legal conformity.

  • Shabbar Zaidi still chairman, to resume charge after leave: FBR

    Shabbar Zaidi still chairman, to resume charge after leave: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday said that Syed Shabbar Zaidi is still Chairman of the FBR but he is on leave.

    While clarifying new reports about the vacancy of office of Chairman, FBR, Dr. Hamid Ateeq Sarwar, Spokesperson for the FBR / Member (IR-Policy) clarified that Syed Muhammad Shabbar Zaidi, Chairman, FBR is on medical leave and he will assume the charge of Chairman, FBR as soon as he gets medically fit.

    However, the position of Chairman, FBR during the leave period of Syed Muhammad Shabbar Zaidi is not lying vacant and Ms. Nausheen Javaid Amjad (IRS/BS-22 Officer) is holding the Look After Charge of the Chairperson, FBR as notified by FBR’s Notification No. 0184-IR-I/2020 dated January 31, 2020.

  • KTBA members asked to report privately hired persons by tax officials

    KTBA members asked to report privately hired persons by tax officials

    Karachi: The Karachi Tax Bar Association (KTBA) has issued an urgent call to its members to report any instances of tax officials hiring privately employed individuals for assistance. This move follows a strict condemnation from the Federal Board of Revenue (FBR) against the practice, warning that it could result in disciplinary action for the officers involved.

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  • Shabbar Zaidi urged to continue as FBR chairman

    Shabbar Zaidi urged to continue as FBR chairman

    KARACHI: A tax bar has urged Shabbar Zaidi to continue as chairman of Federal Board of Revenue (FBR) for betterment of Pakistan’s tax system.

    “Truly speaking there are hundreds of other growth signals which should not be disregarded but to convey my message as well as discharging my basic responsibility precisely, I just need to request you that our country needs a sincere and bright person like you to continue striving hard for betterment and a sustainable tax system for growth of the economy,” said Ahmed Nasir KK, Advocate and President of Mirpur Khas Tax Bar Association (MTBA).

    The tax bar said that with due respect on behalf of my bar members and common taxpayers being represented through Learned Advocates, Tax Consultants including myself, I would like to convey you the true and lasting desire and hope of the business as well legal fraternity, that whatever the circumstances may be, this tax system needs complete reformation as well as a True, Wise, Eligible and sincere Leadership like your kind honor.

    It said that under the chairmanship of FBR, Shabbar Zaidi has achieved unprecedented targets, including significant growth in number of fillers, and revenue collection.

    Moreover, the tax bar said that the number of taxpayers had been increased just due to sincere efforts of Shabbar Zaidi.

    Previously lasting corrupt practices inside FBR like frequent bank account attachments without merit, which badly affected and almost ruined the confidence of business community as well the thoughts and trust of new possible filers were put to an end by your good self.