ISLAMABAD: Pakistan Customs announced public auction of luxury vehicles lying at Prime Minister House to be held on May 21, 2019 at State Warehouse, Islamabad Dry Port.
Following vehicles will be presented for auction:
01. BMWX5 Jeep, Model 2016 (armored), Chassis No. WBAKR6209G0M99712
02. BMWX5 Jeep, Model 2016 (armored), Chassis No. WBAKR620200M9904
03. BMWX5 Jeep, Model 2016 (armored), Chassis No. WBAKR6202G0M99714
04. Mercedes Benz S600L (Guard), Model 2016, Chassis No. WDD2221762A266834
05. Mercedes Benz S600L (Guard), Model 2016, Chassis No. WDD2221762A267771
06. Mercedes Benz Maybach S600, Model 2016, Chassis No. WDD2229762A265866
07. Mercedes Benz Maybach S600, Model 2016, Chassis No. WDD2229762A266494
08. BMW Car 761 U, Model 2014, Chassis No. CH-WBAHP42000DY99225
09. BMW Car 760 U, Model 2014, Chassis No. CH-WBAHP42020DY99226
10. Toyota Land Cruiser Jeep (Protected) Model 2014, Chassis No. URJ2024093203
11. Toyota Land Cruiser, Model 2008, Chassis No. JTECB01J301032994
12. Toyota Land Cruiser, Model 2008, Chassis No. JTEEV73J4000002043
13. Mercedes Benz Car (Protected) Model 2005, Chassis No. WDB-2201752A73693
14. Mercedes Benz Car (Protected) Model 2005, Chassis No. WDB-2201762A457073
15. Mercedes Benz Car (Protected) Model 2005, Chassis No. WDB-2201752A476036
16. Mercedes Benz Car (Protected) Model 2005, Chassis No. WDB-2201752A475123
17. Stretched Limousine Car (Protected) Model 2005, Chassis No. WDB-2201752A457643
18. Toyota Lexus Jeep (Protected) 2005, Model JTJHT00W633531475
19. Mercedes Benz Car, (Protected) Model 2005, Chassis No. WDB-2201762A457435
20. BMW 760LI, Model 2014 (Protected), Chassis No. WBAPH2070DY99223
21. Mitsubishi Lancer S/Saloon Model 1994, Chassis No. CSNBIRU00812
22. BMWX5 Jeep, Model 2016, Chassis No. WBAKR6206G0M99845
23. BMWX5 Jeep, Model 2016, Chassis No. WBAKR6204G0M99830
KARACHI: The Federal Board of Revenue (FBR) has been suggested to impose higher rates of duties on import of non-essential and luxury items in order to reduce current account deficit.
Association of Chartered Certified Accountants (ACCA) in its tax proposals for budget 2019/2020 said that tangible measures should be taken to reduce the import burden.
“Heavy duties should be levied on all non-essential imports like expensive electronics, cars & luxury items.”
In addition incentives should be announced for local industry to encourage domestic products, it suggested.
In other key reforms, the ACCA said that agricultural sector needs to be re-evaluated.
Being an agricultural country its GDP share must be according to its volume. Currently its share in GDP is 24 percent while it has the potential to reach up to 55 percent.
Large landowners should be taxed at minimal rates i.e. 7 percent with that revenue used to subsidize seeds, fertilizers, water, electricity, fuel, etc. for the small farmers.
Cheap and low quality smuggling and imports from India should be controlled.
The ACCA said that for Pakistan, a country of 220 million people, human capital is a huge resource in new era, but unfortunately due to incompetent and poor policies we are unable to convert this power in to workable force, un-employment has increased to almost 6 percent and over 4 million people are unemployed.
Keeping in view the above indicators the government needs to encourage services sectors, new industries and agriculture.
Banking sector should be used to incentivize and promote a culture of entrepreneurship.
Incentives must be announced for Services sectors particularly Telecom, home based industries, young entrepreneurship programs with special focus on women.
KARACHI: Shabbar Zaidi, Chairman, Federal Board of Revenue (FBR) on Saturday asked business community to provide list of raw material for reducing tax rates on import stage.
Addressing the business community at Karachi Chamber of Commerce and Industry (KCCI), Shabbar Zaidi agreed with the business community that there should not be withholding tax on import of raw material.
The KCCI members raised the issue that withholding tax rates ranging 3 percent to 6 percent were imposed on import of raw materials.
“Yes. There should not be withholding tax on raw material,” Zaidi said and asked the KCCI to provide list for taking action before the next budget.
Talking on Amnesty Scheme – 2019, the chairman said that the asset declaration scheme was clear and there was no ambiguity.
He said that the scheme would be part of the Finance Bill for formal approval from the parliament and it would be the same as promulgated through the presidential ordinance.
The chairman said that the rules were being formulated for intending declarants.
Shabbar Zaidi also talked about smuggling and misuse of tax concessions.
He said that tax relief may be given to small number of raw materials but it cannot be extended to all imported goods.
He said that Afghan Transit Trade was used for smuggling into Pakistan. “But there are other ways to import illegal goods into the country,” he added.
The chairman asked the business community that once they declare the smuggled goods were illegal for selling in the local market. “If the business community support and promise there will be no protest then the raids against illicit goods will be launched from tomorrow,” the chairman added.
KARACHI: Pakistan Tax Bar Association (PTBA) has suggested gradually reduction of sales tax rate under five-year policy and for first year the sales tax rate should be brought down to 15 percent from next fiscal year.
In its budget proposals for 2019/2020, the PTBA said that present rate of Sales Tax at 17 percent with 3 percent value addition tax on commercial importers is too high.
It said that there is a narrow tax base due to the high rate which induces tax evasion, under invoicing, corruption and smuggling.
The PTBA proposed that this year as a first step Sales Tax Rate may be brought down to 15 percent and five year policy may be announced for reduction of rate of tax by 1 percent every year.
Moreover, same rate of value addition tax (i.e., 3 percent) may be levied on luxury goods which are expected to be sold at a higher value addition in the local market as compared to other goods.
“Higher value addition tax should be levied on import of luxurious items such as cosmetics, shampoos, cars, etc.”
It said that the proposed amendments would assist in the expansion of tax base, reduction in smuggling and corruption, rise in government revenues and increased competitive edge and promotion of documentation of economy.
Furthermore, the reduced tax rate will encourage the unregistered persons to get themselves registered, resulting in broadening of tax base.
Higher value addition tax on luxury goods will not only generate additional revenue but will discourage import and also support the local industry.
KARACHI: Foreign and multinational companies have demanded the Federal Board of Revenue (FBR) to exempt sales tax and customs duty on import of telecom equipment in order to encourage investment in this sector.
The Overseas Chamber of Commerce and Industry (OICCI) in its proposals for budget 2019/2020 said that telecom was very investment intensive sector and it should be given concessions in terms of reduced rates of customs duties and exemption of sales tax against import of telecom equipment.
The exemption and concessions are important to promote the teledensity throughout the country especially in far flung areas so that the benefits of next generation mobile services can be reached to the masses living in backward areas, said the OICCI – the representative body of foreign investors and multinational companies in Pakistan.
Previously, telecom sector was importing telecom equipment at 5 percent customs duty and zero percent sales tax under SRO 575, however, through Finance Act, 2015, this SRO was rescinded and consequently, the customs duties on network equipment have been increased from 5 percent to 20 percent and sales tax exemption has been removed.
“The increase in custom duty and levy of sales tax has badly affected the pace of growth and digital inclusion as the cost of doing business has been significantly increased which is an additional barrier to network coverage in Pakistan,” the OICCI said.
The roll out of 3G/4G network is still very much at the early stages and reduction in customs duties and restoration of sales tax exemption will help the operators to sustain the necessary investments.
Therefore, the OICCI recommended to reinstate the concessionary custom duties/ exemption of sales tax (refer SRO 575) to encourage investments in IT/ telecom infrastructure.
KARACHI: The government has allowed whitening of money investment in immovable properties at nominal income tax rate of 1.5 percent on declaration made by June 30, 2019.
KARACHI: Pakistan Tax Bar Association (PTBA) has recommended abolishing 12 different provisions of withholding income tax in order reduce the cost of business.
The apex tax bar of the country in its tax proposals for upcoming budget 2019/2020 recommended rationalization of withholding tax regime and in the first step it suggested eliminating 12 withholding tax rates.
The PTBA said that withholding tax regime significantly impacts the taxpayers and Inland Revenue Officers (IRO) alike.
On one hand, the regime increases the cost of doing business for a taxpayer and, on the other hand, it forces IROs to devote numerous resources in monitoring of withholding taxes.
The monitoring of taxes’ goal can be achieved by out sourcing the professional auditor firm and ability of the officer may be used for other work.
Even with the best efforts of the IROs, it is practically impossible to plug all the leakages of taxes withheld and deposit into the national exchequer.
“Globally the withholding tax regime is only applicable to persons whose income is difficult to determine, easier to evade or more likely to cross national boundaries. Currently, in Pakistan, withholding tax regime has been made applicable to almost all the categories of taxpayers and nature of payment under 49 provisions of law been weaved into the indirect taxes,” the PTBA said.
PTBA recommended revamping and rationalize of Withholding Tax Regime in order to reduce cost of doing business, complexity in the taxation laws and leakages in tax collection.
As a first step, it recommended following provisions of law may be withdrawn in which no substantial revenue is being collected in the last three years and eight months of current fiscal year:-
Sr. No.
Section
Description
2018-19 [Estimated on the basis of actual up to March, 2019]
2017-18
2016-17
2015-16
01
156B
Withdrawal of balance under Pension Fund.
100
136
86
76
02
235A
Domestic electricity consumption.
917
792
312
1,730
03
236B
Advance tax on purchase of air ticket.
559
484
303
495
04
236D
Advance tax on functions and gathering.
965
839
783
622
05
236F
Advance tax on cable operators and other electronic media.
49
24
19
21
06
236J
Advance tax on dealers, commission agents and arhatis etc.
136
123
123
109
07
236L
Advance tax on purchase of international air ticket.
1,131
1,257
1,331
999
08
236Q
Payment to resident for use of machinery and equipment.
644
619
328
174
09
236R
Collection of advance tax on education related expenses remitted abroad
KARACHI: Association of Chartered Certified Accountants (ACCA) has said that the existing sales tax rate of 17 percent in Pakistan is the highest in the region.
The existing rate of Sales Tax at 17 percent is one of the highest in the region with an average of around 12 percent in Asia (15 percent in India and Bangladesh, 10 percent in Indonesia and just 6 percent in Malaysia), ACCA said in its tax proposals for budget 2019/2020.
Sales Tax should be used to broaden the tax base and not as a replacement of direct taxation.
In order to avoid the net negative costs for the economy, the rate should be brought down to single digit in a phased manner with a proposed reduction to 14 percent.
The association also recommended harmonization of inter-provincial and federal-provincial taxation for avoiding double taxation.
It said that the conflicts between various provincial revenue authorities and the federation are resulting in double taxation of services owing to the classification and jurisdiction disputes.
Also, standardizing the applicable rates while also reducing them could facilitate the businesses while also increasing the tax revenues simultaneously.
Similarly, the lack of inter-provincial harmonization also results in double taxation of services owing to the classification and jurisdiction disputes.
These issues should be resolved to create a business-friendly environment and facilitate the tax-payers.
Point of origination or deliverance of services can be agreed upon by all revenue authorities as the basis of classification and the resulting jurisdiction to resolve the major inconvenience to the taxpayers.
The ACCA highlighted the issue of adjustable input tax and said with the introduction of the STRIVE system resulting online matching of invoices, the chances of sales tax fraud and/or error have been minimized.
Therefore the current restriction of limiting the input tax adjustment to 90 percent (ninety percent) of the output tax is outdated and needs to be abolished.
This will be in line with the principles of fairness, equity and justice for all and help restore the confidence of businesses.
The association also pointed out revision of sales tax return and said this should be made easy and automated as with the STRIVE system in place, chance of tax fraud are minimized to the maximum possible extent as claimed by FBR.
It further pointed out that in line with the principles of fairness, equity and justice for all, the appeals should be heard by a person not under the administrative jurisdiction/influence of FBR.
KARACHI: Federal Board of Revenue (FBR) has been recommended to exempt income tax on mortgage loans in order to facilitate salaried persons.
Currently the loans obtained from the employer below Benchmark interest rate is subject to tax, said Institute of Chartered Accountants of Pakistan (ICAP) in its tax proposals for budget 2019/2020.
It recommended that the taxation of marginal income on loans obtained from the employer below benchmark rate should be exempted by deleting sub-section (7) of Section 13 of Income Tax Ordinance, 2001.
Alternatively, the minimum threshold of the loan amount on which the provisions of Section 13(7) would not be attracted, should be raised to at least Rs2,500,000 from the existing limit of Rs1,000,000.
Moreover, current benchmark rate of 10 percent of much higher than the prevailing KIBOR rates, therefore, benchmark rate should be reduced suitably to somewhere near KIBOR rate.
“Alternatively, at least the mortgage loans should be exempted from the operation of Section 13(7) of the Income Tax Ordinance, 2001.”
The institute said that this is not a significant source of revenue for the Government on the one hand and very rigid piece of legislation on the salaried taxpayer on the other hand who are hard hit by the present economic situation.
The taxation of this notional income is highly unjust since it taxes the notional income of the salaried person, which is against the basic principle of taxation since this notional income will never ever be received by the taxpayer.
Similar notional income in the hands of employees of educational institutions, restaurants, hospitals, clinics etc. is already exempt under clause (53A) of Part I of Second Schedule.
The rationale underlying this proposal is that:
a) It will boost the housing industry since in today’s economic situation and the presence of speculators in the property market it is next to impossible for a salaried employee to own a house on commercial mark-up rates. Once this industry takes off there will be provision of cheap houses and there will be increase in tax revenue from housing and allied sector;
b) It will contribute in enhancing the national economic activity by extending affordable loans and advances to middle class income group of society;
c) It will remove detrimental financial ramifications due to incremental rate of interest on notional income for all other salaried persons, who are already facing a tough challenge to survive within their paltry resources- all legally declared and tax paid; and
d) The FBR is also cognizant of this fact by stating in Clause (53A) that “any other perquisite or benefit for which the employer does not have to bear any marginal cost; and the Circular Letter 4(8)IT-J/91 dated June 30, 1991 issued by then CBR opines that “…it is not desirable to tax such notional income…”. The same principle should be applied in this situation.
SLAMABAD: The amnesty scheme announced by the government for foreign and domestic undeclared assets a day earlier has been launched through promulgation of presidential ordinance on Wednesday.
Following is the text of the presidential ordinance:
An ORDINANCE
To provide for voluntary declaration of undisclosed assets, sales and expenditure
WHEREAS there is a reportedly large scale non-declaration of assets, sales and expenditure;
AND WHEREAS it is expedient to —
a) Allow the non-documented economy’s inclusion in the taxation system; and
b) Serve the purpose of economic revival and growth by encouraging a tax complaint economy;
AND WHEREAS the Senate and the National Assembly are not in session and the President of the Islamic Republic of Pakistan is satisfied that circumstances exist which render it necessary to take immediate action;
NOW, THEREFORE, in the exercise of the powers conferred by clause (1) of Article 89 of the Constitution of the Islamic Republic of Pakistan, the President of the Islamic Republic of Pakistan is pleased to make and promulgate the following Ordinance:-
1. Short title, extent and commencement:
(1) This Ordinance shall be called the Assets Declaration Ordinance, 2019.
(2) It shall extend to the whole of Pakistan.
(3) It shall come into force at once.
2. Definitions:
(1) In this Ordinance, unless there is anything repugnant in the subject or context, —
(a) “assets” means all domestic and foreign assets of every kind ;
(b) “Board” shall have the same meaning as defined in clause (8) of section 2 of the Income Tax Ordinance, 2001 (XLIX of 2001);
(c) “court of law” means a High Court or Supreme Court of Pakistan;
(d) “declarant” means a person making a declaration under section 5;
(e) “holder of public office” means a person as defined in the Voluntary Declaration of Domestic Assets Act, 2018 or his benamidar as defined in the Benami Transactions (Prohibition ) Act, 2017 (V of 2017) or their spouses and dependents;
(f) “undisclosed assets “ includes benami assets as defined in the Benami Transactions (Prohibition ) Act, 2017 (V of 2017) and any assets the value of which has been unreported, under-reported or understated;
(g) “undisclosed expenditure” means any unexplained or unaccounted expenditure under the provisions of the Income Tax Ordinance, 2001 (XLIX of 2001) up to the tax year 2018, which has not been declared in the return of income or for which a return of income has not been filed and such expenditure is not accounted for;
(h) “undisclosed sales “ means sales or supplies chargeable to sales tax or federal excise duty under the Sales Tax Act, 1990 or the Federal Excise Act, 2005, respectively, which were not declared or have been under-declared up to 30th June, 2018.
(2) All other words and expressions used but not defined in this Ordinances shall have the same meaning assigned thereto under the Income Tax Ordinance, 2001 (XLIX of 2001), the Sales Tax Act, 1990, the Federal Excise Act, 2005, the Benami Transactions (Prohibition) Act, 2017 (V of 2017) and the rules made thereunder.
3. Declaration of undisclosed assets, sales and expenditure:
Subject to the provisions of this Ordinance, any person may make, on or before 30th June, 2019, a declaration only in respect of any .
(a) Undisclosed assets, held in Pakistan and abroad, acquired up to 30th June, 2018;
(b) Undisclosed sales made up to 30th June, 2018.
(c) Undisclosed expenditure incurred up to 30th June, 2018; or
(d) Benami assets acquired or held on or before the date of declaration;
Explanation. It is clarified that the benefit under this Ordinance shall also be available where.
(a) Any proceedings have been initiated or are pending or where any income has been assessed under the Income Tax Ordinance, 2001 (XLIX of 2001), which are relatable to undisclosed assets or expenditure except where the matter has attained finality;
(b) Any proceedings have been initiated or are pending or have been adjudicated under the Sales Tax Act, 1990, or the Federal Excise Act,2005 which are relatable to any undisclosed sales or supplies except where the matter has attained finality.
4. Charge of Tax and default surcharge:
(1) The undisclosed assets shall be chargeable to tax and default surcharge at the value mentioned in section 5 and at the rates specified in the Schedule to this Ordinance.
(2) The undisclosed sales and expenditure shall be chargeable to tax and default surcharge at the rates specified in the Schedule to this Ordinance.
5. Value of Assets. Value of Assets
(a) In case of domestic immovable properties shall be the price not less than-
(i) 150 percent of the FBR value notified under sub-section (4)of section 68 of the Income Tax Ordinance, 2001 (XLIX of 2001); or
(ii) 150 percent of the DC value, where FBR value has not been notified or the FBR value is less than the DC value; or
(iii) 150 percent of FBR value notified under sub-section (4) of section 68 of the Income Tax Ordinance, 2001 (XLIX of 2001) for land and 150 percent of DC value for constructed property , where FBR value has not been notified for constructed property.
(b) In case of all oher assets, shall be the price which the assets would ordinarily fetch on sale in the open market on the date of declarationbut in no case shall be less than the cost of acquisition of the assets;
Provided that in case of foreign assets, the fair market value shall be determined at the exchange rate prevalent on the date of declaration.
Explanation: It is clarified as follows –
(a) In case any declarant has already filed a declaration in respect of any immovable property under the Income Tax Ordinance, 2001, or the Voluntary Declaration of Domestic Assets Act, 2018 and wishes to enhance the declared value of the said immovable property, he may file a declaration under this Ordinance in terms of the value mentioned in section 5 and above;
(b) In case a person has already filed a declaration in respect of any immovable property which is in line with section 68 of the Income Tax Ordinance, 2001, or the Voluntary Declaration of Domestic Assets Act, 2018 no further proceedings or action will be initiated against him in view of provisions of this Ordinance, in particular section 5 thereof.
6. Time for payment of tax:
(1) The due date for payment of tax chargeable under this Ordinance shall be on or before 30th June, 2019.
Provided that after the due date under this sub-section, the tax shall be payed on or before the 30th June, 2020 along with default surcharge at the rates given in clause (2) of the schedule to this Ordinance.
(2) The tax in respect of foreign assets or foreign currency held in Pakistan shall be paid in foreign currency according to the procedure prescribed by the State Bank of Pakistan, in the mode and manner provided in section 9.
(3) If a person fails to pay tax and default surcharge according to this section, the declaration made shall be void and shall be deemed to have never been made under this Ordinance.
(4) Notwithstanding the provisions of clause (g) of section 11, in case of outstanding demand at the time of filing of declaration, the declarant may pay the amount of such tax determined by the Officer of Inland Revenue, under the provisions of the Sales Tax Act, 1990 or the Income Tax Ordinance, 2001 (XLIX of 2001), or the Federal Excise Act, 2005, without payment of default surcharge and penalty.
7. Incorporation in books of account:
(1) Where a declarant has paid tax under section 6 in respect of undisclosed assets, sales and expenditure the declarant shall be entitled to incorporate such assets, sales and expenditure in his return, wealth statement or financial statement irrespective of the fact that the assets, sales or expenditure were relatable to a year which is barred by time for the purpose of revision of return of income or wealth statement, as a case may be.
(2) No allowance, credit or deduction under any law for the time being in force shall be available for assets so incorporated.
8. Conditions for declaration. The declaration made shall be valid if-
(a) Cash held by the declarant is deposited into a bank account in the manner specified at the time of declaration and is retained in such bank account upto the 30th June, 2019; or
(b) The foreign currency held in Pakistan declared under section 3 is deposited into declarant’s own foreign currency bank account at the time of declaration and is retained in such account till 30th June, 2019; or
(c) The repatriated foreign liquid asset is deposited into declarant’s own Pak Rupee account or his foreign currency bank account in Pakistan or is invested into Pakistan Banao Certificates or any foreign currency denominated bonds issued by the Federal Government; or
(d) Foreign liquid assets not repatriated to Pakistan shall be deposited in declarant’s foreign bank account on or before the 30th June, 2019.
9. Mode and manner of repatriation of assets held outside Pakistan and payment of tax thereon.
The State Bank of Pakistan shall notify the mode and manner of-
(a) Repatriation of assets to Pakistan;
(b) Deposit of tax in foreign currency through State Bank of Pakistan; and
(c) Method of conversion of value of assets held outside Pakistan in Pak rupees.
10. Tax paid not refundable.
Any amount of tax or default surcharge paid under the provisions of this Ordinance shall not be refundable.
11. Ordinance not to apply to certain persons, assets or proceedings.
The provisions of this Ordinance shall not apply to:
(a) Holders of public office;
(b) A public cmpany as defined under clause (47) of section 2 of the Income Tax Ordinance, 2001;
(c) Any proceeds or assets that are involved in or derived from the commission of a criminal offence;
(d) Gold and precious stones;
(e) Bearer prize bonds;
(f) Bearer securities, shares, certificates, bonds or any other bearer assets; or
(g) Proceedings pending in any court of law.
12. Declaration not admissible in evidence:
Notwithstanding anything contained in any other law for the time being in force, nothing contained in any declaration made under this Ordinance shall be admissible in evidence against the declarantfor the purpose of any proceedings relating to imposition of penalty or adverse action or for the purposes of prosecution under any law.
13. Misrepresentation:
Notwithstanding anything contained in this Ordinance, where a declaration has been made by misrepresentation or Suppression of facts, such declaration shall be void and shall be deemed to have been never made under this Ordinance.
14. Confidentiality:
(1) Notwithstanding any other law for the time being in force including the Right of Access to Information Act, 2017 (XXXIV) and sub-section (3) of section 216 of the Income Tax Ordinance, 2001 (XLIX of 2001), execpt the provisions of clauses (a) and (g) of sub-section (3) of section 216 of the Income Tax Ordinance, 2001 (XLIX of 2001), particulars of any person making a declaration under this ordinance or any information received in any declaration made under this Ordinance shall be confidential.
15. Power to make rules:
The Board may be notification in the official Gazette make rules for carrying out the purposes of this Ordinance including the manner, procedure payment of tax and conditions under which the declaration under this Ordinance shall be filed.
16. Ordinance to override other laws:
The provisions of this Ordinance shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.
17. Removal of difficulties:
If any difficulty arises in giving effect to the provisions of this ordinance, the Federal Government may, by notification in the official Gazette, remove such difficulty as is inconsistent with the provisions of this ordinance.
THE SCHEDULE [see section 4]
Rates of Tax
1. The rates of tax imposed on undisclosed assets, sales and expenditures shall be as specified in the following Table, namely:
Table
S. No
Undisclosed assets, sales or expenditures
Rate of tax
(1)
(2)
(3)
1.
All assets except domestic immovable properties
4 percent
2.
Domestic immovable properties
1.5 percent
3.
Foreign liquid assets not repatriated
6 percent
4.
Unexplained expenditure
4 percent
5.
Undisclosed sales
2 percent
Rates of Default Surcharge
2. The amount of tax under clause (1) of the Schedule shall be increased by a default surcharge by amount percentage as specified in the following Table, namely:
Table
S. No
Time of payment of tax
Rate of default surcharge
1.
If the tax is paid after the June 30, 2019 and on or before the September 30, 2019
10 percent of the tax amount
2.
If the tax is paid after September 30, 2019 and on or before December 31, 2019
20 percent of the tax amount
3.
If the tax is paid after the December 31, 2019 and on or before the March 31, 2020
30 percent of the tax amount
4.
If the tax is paid after March 31, 2010 and on or before June 30, 2020
