The Federal Board of Revenue (FBR) has recently presented a comprehensive revenue position to the finance ministry, highlighting an estimated loss of Rs50 billion resulting from the downward revision of tax rates on salary income.
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Pakistan Revenue delivers the latest taxation news, covering income tax, sales tax, and customs duty. Stay updated with insights on tax policies, regulations, and financial developments in Pakistan.
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Income Tax Ordinance 2001: advance tax on paying education fee abroad
KARACHI: Foreign exchange companies are responsible for collecting advance tax on remitting abroad the education related expenses.
The Federal Board of Revenue (FBR) recently updated Income Tax Ordinance, 2001 under which Section 236R explained the advance tax on remitting amount abroad for education expenses.
Section 236R: Collection of advance tax on education related expenses remitted abroad
Sub-Section (1): There shall be collected advance tax at the rate specified in Division XXIIV of Part-IV of the First Schedule on the amount of education related expenses remitted abroad.
Rate of collection of tax under section 236R shall be 5percent of the amount of total education related expenses.
Sub-Section (2): Banks, financial institutions, foreign exchange companies or any other person responsible for remitting foreign currency abroad shall collect advance tax from the payer of education related expenses.
Sub-Section (3): Tax collected under this section shall be adjustable against the income of the person remitting payment of education related expenses.
Sub-Section (4): For the purpose of this section, “education related expenses” includes tuition fee, boarding and lodging expenses, any payment for distant learning to any institution or university in a foreign country and any other expense related or attributable to foreign education.
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Customs Intelligence Lahore announces auction of vehicles on March 27
ISLAMABAD: Directorate of Intelligence and Investigation, Customs, Federal Board of Revenue (FBR), Lahore announced auction of confiscated vehicles to be held on March 27, 2019.
Following vehicles will be presented for the auction:
01. Mercedes Benz Car E-240, Model 1997, Reg. No. LE-190/ICT, Chassis No. WDB2100352A502971
02. Toyota Progress Car 2927CC, Model 1999, Reg. No. DGA-271, Chassis No. JCJ11-0005820
03. BMW Car 745i, Model 2003, Reg. No. LZM-86, Chassis No. WBAGL22000DP38322
04. Toyota Land Cruiser, Model 1992, Reg. No. BC-4763 Sindh, Chassis No. HDJ81-0020626
05. Honda Civic Hybrid Car 1339CC, Model 2006, Reg. No. AAK-572, Chassis No. FD3-1006468
06. Honda Accord Car CL-9, Model 2002, Reg. No. BFH-756, Chassis No. CL9-1000417
07. Toyota Mark-X Car, Model 2005, Reg. No. NZ-609, Chassis No. GRX120-0025787
08. Honda Accord Car (Inspire), Model 2003, Reg. No. BDF-478/Sindh, Chassis No. UCI-1007210
09. Jaguar X-Type 2.5 Car, Model 2006, Reg. No. AAA-537-Quetta, Chassis No. SAJAC51MX2XC2666
10. Toyota Crown Car, Model 2003, Reg. No. ANY-763-Sindh, Chassis No. JZS175-0064405
11. Toyota Crown Car, Model 2001, Reg. No. AXA-037, Chassis No. JZS171-0075220
12. Toyota Crown Car, Model 2007, Reg. No. WG-009-ICT, Chassis No. GRS182-5014070
13. Toyota Crown Hybrid Athlete Car, Model 2014, Reg. No. AAK-222-ICT, Chassis No. AWS210-6050888
14. Nissan Petrol Jeep, Model 2006, Reg. No. LU-064, Chassis No. WFGY61-003549
15. Honda Accord Car, Model 2004, Reg. No. BDY-545, Chassis No. CL9-1050040
16. Suzuki Motorcycle (Heavy Bike) HP1300CC, Model 2014, Reg. No. GSX-1300, Chassis No. JS1CK111600101675
17. Triumph Heavy Motorcycle, Model 2010, Reg. No. LX09-UXB, Chassis No. PTOTOTYPEVH004CP2
18. Heavy Motorcycle Yamaha Brand 1000CC Made in Japan, Model R12000, Chassis No. JYARN041000003182
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MCC Appraisement West announces auction of vehicles on March 25 -
FBR holds awareness sessions for online payment of duty, taxes
In a proactive step towards modernizing tax procedures and enhancing ease of doing business, the Federal Board of Revenue (FBR) organized informative sessions in Karachi and Lahore for the business community and tax consultants.
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Advance tax on dealers, commission agents
KARACHI: Every market committee has been required to collect advance tax from dealers, commission agents under income tax laws.
The Federal Board of Revenue (FBR) recently updated Income Tax Ordinance, 2001 under which advance tax is collectable from dealers, commission agents and arhatis under Section 236J.
Section 236J: Advance tax on dealers, commission agents and arhatis etc
Sub-Section (1): Every market committee shall collect advance tax from dealers, commission agents or arhatis, etc. at the rates specified in Division XVII of Part-IV of the First Schedule at the time of issuance or renewal of licences.
The rate of collection of tax under section 236J shall be as follows:
Group Amount of tax
(per annum)Group or Class A: Rs. 10,000 Group or Class B: Rs. 7,500 Group or Class C: Rs. 5,000 Any other category: Rs. 5,000 Sub-Section (2): The advance tax collected under sub-section (1) shall be adjustable.
Sub-Section (4): In this section “market committee” includes any committee or body formed under any provincial or local law made for the purposes of establishing, regulating or organizing agricultural, livestock and other commodity markets.
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Income Tax Ordinance 2001: advance tax on sale, purchase of immovable properties -
MCC Appraisement West announces auction of vehicles on March 25
KARACHI: Model Customs Collectorate (MCC) Appraisement (West) Karachi announced auction of vehicles laying at Al-Hamd International Cargo Terminal to be held on March 25, 2019.
Following vehicles will be offered for the auction:
S. No. Description Model Capacity 1 Used Mitsubishi Car 2009 – 2 Used Mitsubishi Mini Cab 2013 – 3 Used Nissan Clipper 2012 – 4 Used Suzuki Stingray Wagon R (without extra goods) 2013 – 5 Used Toyota KX-R V6 2013 3456 ML 6 Used Honda FIT Car 2014 – 7 Used Suzuki Carry 2013 650 CC 8 Used Honda Shuttle Hybrid Car 2015 – 9 Used Honda FIT Hybrid Car 2017 – 10 Used Suzuki Lapin Car (ene-charge) 2017 – 11 Used Lexus NX300H (Hybrid) 2015 2494 ML/CC 12 Old & Used Toyota Mark-II (Grande) Car 2004 2000 CC 13 Old & Used Toyota Mark-II (Grande) Car 2000 2000 CC 14 Old & Used Toyota Mark-X-250G 2005 2500 CC 15 Used Toyota Hilux 4X4 Double Cabin 2009 3000 CC 16 Used Toyota Hilux Double Cabin 2004 2779 ML 17 Old & Used Toyota Hilux 4X4 2009 3000 CC 18 Used Toyota Hiace Van – 2446 CC 19 Old & Used Toyota Hiace Van Ambulance 1995 2446 CC 20 Old & Used Toyota Hilux Pickup D/ Cabin 2008 2779 CC 21 Old & Used Toyota Hilux Pickup D/ Cabin 2000 2779 CC 22 Old & Used Toyota Hilux Pickup D/ Cabin 2008 2779 CC 23 Old and Used Toyota Vigo 2005 2779 CC 24 Old and Used Toyota Hilux 4X4 2002 2779 CC 25 Old and Used Toyota Hilux 4X4 2002 2779 CC 26 Old & Used Toyota Hilux 4X4 2000 2779 CC 27 Old and Used Toyota Hilux 4X4 2002 2779 CC 28 Old and Used Toyota Hilux 4X4 2002 2779 CC 29 Old and Used Toyota Hilux 4X4 2002 2779 CC 30 Old and Used Toyota Hliux Pickup 4X4 2002 2779 CC 31 Old and Used Toyota Hilux 4X4 2000 2779 CC 32 Old and Used Toyota Hilux 4X4 2000 2779 CC 33 Old and Used Toyota Tsusho 4X4 2000 2779 CC 34 Old and Used Toyota Hliux Pickup 4X4 2002 2779 CC 35 Old and Used Toyota Hliux Pickup 4X4 2002 2779 CC 36 Old and Used Toyota Hliux Pickup 4X4 2002 2779 CC 37 Old and Used Toyota Hliux Pickup 4X4 2002 2779 CC 38 Old and Used Toyota Hliux Pickup 4X4 2000 2779 CC 39 Old & Used Mitsubishi Van 1997 2477 CC 40 Used Volkswagen AG Car 2013 999 CC 41 Used Nissan Dayz Roox 2017 – 42 Used Honda Jade Hybrid Car 2015 – 43 Used Honda N-ONE 2015 – 44 Used Daihatsu Subaru Stella Car 2016 658 CC 45 Used Honda ACTY Van 2017 – 46 Used Suzuki Alto ene-charge Car 2016 – 47 Used Daihatsu Mira E:S Car 2015 658 CC Related Stories
Maintaining five-year record of international trade mandatory under Customs Act -
SBP directs banks to ensure OTC tax collection by March 27
KARACHI: State Bank of Pakistan (SBP) on Friday directed all commercial banks to ensure receiving payment of duty and taxes through over the counter (OTC) channel.
The SBP said that the finance department through circular on July 17, 2018 made it mandatory for banks to enable their Over-the-Counter (OTC) Channel for collection of taxes and duties.
Complaints are pouring in from different quarters, regarding non-entertaining of tax payment requests through banks’ OTC Channel.
So much so that Federal Board of Revenue (FBR) has formally launched a complaint that PSIDs generated by WeBOC system for payment of customs duty and other taxes especially the levy on Mobile devices are not being entertained, by the bank branches.
In view of the above, all banks were advised vide email dated 15th March 2019 to improve their customer services in facilitating taxpayers with due courtesy.
Despite the above-referred instructions, there is no visible improvement, as complaints from different quarters are still landing with us.
It is therefore advised to share these instructions with all your branches across the country with the advice to ensure meticulous compliance and facilitate the taxpayers in payment of taxes and duties under the I Link’s OTC facility.
The branches shall also prominently display on their respective Notice Boards that “Taxes and Duties are accepted here under the 1Link’s OTC facility”. Further, banks shall also ensure that the branch staff has adequate understanding of the mechanism for collection of taxes and duties under the said facility.
The banks shall inform this department within 3 working days of the date of circular i.e. 27th March 2019 that these instructions have been communicated to all their branches for meticulous compliance and that the Notice Boards of branches are prominently displaying the message that “Taxes and Duties are accepted here under the 1Link’s OTC facility”.
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Maintaining five-year record of international trade mandatory under Customs Act
KARACHI: Importers, exporters and other stakeholders related to international trade are required to maintain transactions record for at least past five years.
According to Customs Act, 1969 the stakeholders of international trade are required to maintain record under the following section:Section 211: Maintenance of record
Sub-Section (1): All importers, exporters and claimants of duty drawback, refunds or any notified concessions, terminal operators, owners of the warehouses, customs agents and the licensed customs bonded carriers, transport operators and tracking companies, carrying out business under this Act or rules made thereunder or under any other law, directly or indirectly, relating to international trade, shall be required to maintain and keep records and correspondence concerning import, export and transit trade transactions.
Sub-Section (2) The records required under sub-section (1) shall be kept for a period not less than five years in such form as the Board may by notification in the official gazette, specify.
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Sub-Section (3): The provision of sub-section (1) shall not be applicable to the baggage of the passengers and crew of the conveyance and to the recipients of gifts. -
PTBA demands for judicial policy compliance
KARACHI: Pakistan Tax Bar Association (PTBA) on Thursday demanded the government of recruiting accountant members of tribunals of Customs and Inland Revenue should be through Federal Public Service Commission (FPSC) and approved by Supreme Court / High Court.
The PTBA has sent communication to Dr. Farough Naseem, Federal Minister of Law & Justice, Asad Umar, Minister for Finance, Revenue and Economic Affairs and Muhammad Hammad Azhar, Minister of State for Revenue in this regard.
The tax bar said that the appellate mechanism under tax codes provides right to appeal before the commissioner of appeals or collector of appeals in case a taxpayer is aggrieved by the assessment made by adjudicating officer.
The tax bar said that appellate tribunal is second legal forum for taxpayers or tax department after commissioner Appeals/Collector Appeals.
The Appellate Tribunal Inland Revenue (ATIR) functions through its benches comprising judicial and accountant members. The qualification for appointment as judicial member is similar to that for the appointment of a high court judge, and only well experienced and competent people from the legal profession and judiciary are selected.
“Section 1340(4) of the Income Tax Ordinance, 2001 provides that the accountant member shall be either grade 21 officer of inland revenue or a commissioner having at least three year’s experience or a chartered accountant with 10 year’s experience or a cost and management accountant with at least 10 year’s experience.”
Unless the position of accountant members are advertised through FPSC, how can a chartered accountant or a cost and management accountant ever be selected on merits as accountant member of the tribunal, the tax bar asked.
It further said that at present officers of Inland Revenue are sent to tribunal on secondment. A person having lien with FBR cannot perform the functions independently and further it will be violative of National Judicial Policy 2009.
To make tribunal a truly independent judicial forum, it is imperative to recruit accountant members be it from FBR cadre or chartered accountants and cost and management accountant through FPSC. Accountant member should be appointed through FPSC and as per Judicial Policy 2009.
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SRB suspends registration of ZY & Co. Bulk Terminals
KARACHI: Sindh Revenue Board (SRB) has suspended the sales tax registration of M/s. Z.Y. & Co. Bulk Terminals (Private) Limited for defaulting payment and e-filing of monthly sales tax returns.
The SRB said that the scrutiny of tax profile revealed that the company failed:
— To make payment of Sindh sales tax on services pertaining to the tax period from December 2018 to February 2019.
— to e-file the Sindh sales tax return in the time limitation and the manner for the aforesaid period.
The SRB said that non-payment of SST and non-filing of SST returns within the time and manner prescribed under the law is contravention of Sindh Sales Tax Act, 2011 and the rules made thereunder.
The SRB suspended the sales tax registration of the company with immediate effect. However, it directed the company that the suspension would be revoked if following remedial measures are taken:
— To discharge all sales tax liability
— To e-file the true and correct monthly Sindh sales tax returns for the said tax periods.
In case of non-satisfactory response or failure to take remedial measures as suggested on or before April 04, 2019, the case would be further proceeded for cancellation the registration with the SRB.