October 5, 2024
CNIC condition not applicable on purchases below Rs50,000

CNIC condition not applicable on purchases below Rs50,000

KARACHI: The condition of providing CNIC details is not applicable on purchases up to Rs50,000 by a person, said Zeeshan Merchant, former vice president of Karachi Tax Bar Association (KTBA).

He highlighted key changes to sales tax law made through Finance Act, 2019 at a seminar organized by KTBA on Thursday.

He said the condition of CNIC has been waived where retailers supply goods to ordinary consumers for own consumption with transaction value not exceeding Rs50,000, including sales tax.

He said that obtaining CNICs of unregistered buyers had also been postponed till August 01, 2019.

It has also been expressly provided that the supplier will not be penalized for the wrong declaration of CNIC number by the buyer in case of sales made in good faith.

He said that through Finance Act, 2019 the threshold for cottage industry had been increased up to Rs3 million from Rs2 million.

The Finance Act, 2019 relaxed certain conditions in order to cater sales to registered sector, the condition for CNIC had been done away with provided the buyer’s NTN is mentioned on the invoice.

Asif Haroon, Senior tax practitioner while highlighting key changes to Income Tax said that various sectors of the economy had been brought under minimum tax regime.

These sectors include: commercial imports, brokerage and commission, non-resident persons for certain services, local supply of goods, execution of contracts and income from CNG stations.

He pointed out another change through which the concept of filer and non-filer had been abolished.

He said that a new Tenth Schedule has been introduced to Income Tax Ordinance, 2001 where rate of withholding tax had been enhanced by 100 percent for persons not appearing on the Active Taxpayers List (ATL).

He termed the introducing tenth schedule was another effort for documenting the economy.

Late filers can become part of ATL by paying surcharge at the applicable rates. On filing of returns, the taxpayers can claim refund of tax withheld in excess of the actual tax liability.

The period during which the names of such persons do not appear in ATL, refund will not be issued during that period.

Moreover, the said period will also not be considered for the purposes of additional compensation for delayed refund, he added.

Immunity allowed under Section 111(4) of Income Tax Ordinance, 2001 has been reduced to Rs.5 million from Rs10 million for foreign remittance through banking channels.

Further displaying of business license by every person engaged in any business, profession or vocation, even where they are not required to obtain NTN.

The tax authorities have also introduced simplified tax regime for small businesses, construction businesses, medical practitioners, hospitals, educational institutions and any other sector specified, he added.