Pkrevenue.com

Tag: FBR

FBR, Pakistan’s national tax collecting agency, plays a crucial role in the country’s economy. Pakistan Revenue is committed to providing readers with the latest updates and developments regarding FBR activities.

  • FBR issues Taxpayers’ Charter (rights, obligation) guide

    FBR issues Taxpayers’ Charter (rights, obligation) guide

    The Federal Board of Revenue (FBR) has issued taxpayers’ charter to define rights of the taxpayers and their obligation toward their liability to pay tax.

    According to the FBR, the taxpayers’ charter defines rights and obligations of taxpayers, which will help eliminate the traditional perception and create a new tax culture of mutual trust, confidence and friendly working relationship between the taxpayers and the taxmen.

    It defines a taxpayer as: “Any person who pays or is obliged to collect, deduct or pay any of the taxes administered by the FBR.”

    The primary responsibility of the tax office is to collect due tax under the law within reasonable time ensuring least inconvenience to the taxpayer. For this purpose, Tax Facilitation Centers have been established in all Large Taxpayers Units and Regional Tax Offices, wherein one window operation facility is provided to the taxpayers for swift resolution of their tax-related issues, the FBR added.

    These offices are manned with professional trained outfits for the purpose of facilitation & guidance of the taxpayers.

    READ MORE: Tax officials may face criminal proceedings under ST Act

    The FBR defines TAXPAYERS’ RIGHTS as:

    Be Fair, reasonable and courteous

    We treat you fairly and equitably. This includes:-

    Paying respect and extending possible help and assistance.

    Handling of your tax professionally and impartially;

    Ensuring uniform interpretation and application of law in letter and spirit;

    Requiring you to pay what is due under the law.

    Treat you as being honest

    We treat you and your representative as honest & fair in tax affairs unless proved otherwise.

    Be accountable for what we do

    We are obliged to act and behave in a professional manner and within the four walls of legal framework.

    Facilitate and educate you

    We provide information and extend all cooperation to help you to understand and meet your tax obligations.

    Keep the information confidential

    We maintain confidentiality of your tax affairs and details, documents, or declarations given during the course of any tax proceedings.

    READ MORE: FBR identifies 482 retailers for POS integration

    Provide access to information

    It includes:

    Right to have access to the information or documents about your tax affairs only.

    Right to have access to explanatory circulars and public rulings given by the Federal Board of Revenue.

    Allow opportunity of being heard

    It includes:

    Allowing reasonable opportunity of being heard before concluding your tax affairs;

    Correct appreciation of facts and circumstances relevant to your case; and

    Allowing sufficient/reasonable compliance time to respond to queries concerning your tax affairs.

    Accept your right of representation

    We accept your right of seeking professional advice concerning your tax affairs. This includes representation of the authorized representatives.

    Accept your right of appeal, review and alternate dispute resolution

    We accept your right to object:

    On disagreements over facts, figures or interpretation of law; or

    For any mistake, error or mal- administration that occurred during the conduct of proceeding of your tax matters.

    READ MORE: Criminal proceedings against officials of RTO-II Karachi in fake sales tax refunds ordered

    Acknowledge and respond to your Communications

    This means to:

    Acknowledge receipt of your communications;

    Respond swiftly and accurately to your queries and requests for assistance; and

    Redress your tax issues professionally.

    Minimize your compliance cost

    This is ensured by:

    Good governess with a view to facilitate, educate and help the compliant taxpayers in resolving tax affairs;

    Avoiding requisition of un-necessary information, details, documents both at the time of filing of tax forms return and during the proceedings of tax affairs;

    Levying the taxes strictly in accordance with law;

    Simplifying the tax laws and processes and introducing the concept of self-assessment in its true spirit;

    Conducting meetings with you/ your representative at agreed time;

    Finalizing proceedings in the minimum possible time;

    Introducing taxpayer friendly, simple and easy to fill tax forms; and

    Providing facilitation and tax education tools (literature, brochures, leaflets, software, website, workshops, seminars, help line etc).

    Redress your grievances

    It includes:

    Processing of your complaints; and

    Resolving your tax-related issues/ problems.

    Issue the due refund of taxes within a reasonable time

    This includes:

    Keeping handy all record of your tax paid and balance payable/ refundable;

    Processing your refund claims and issue due refunds within the prescribed time limit;

    Payment of compensation for delayed refunds; if any.

    Taxpayers Obligations

    FBR expects from taxpayer (you) to voluntarily;

    Register yourself

    Comply with tax laws

    File correct, complete and candid returns and statements prescribed time;

    Pay due taxes;

    Maintain accounts, documents and records of your transactions;

    Be truthful and honest in your dealings with tax authorities;

    Provide complete and information and record, if required under the law.

    READ MORE: Major changes in sales tax regime on the cards

  • Default surcharge for failure in timely tax payment

    Default surcharge for failure in timely tax payment

    Taxpayers are liable to pay default surcharge in case the due payment is not deposited in national kitty in time under Section 34 of the Sales Tax Act, 1990.

    The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

    Following is the text of section 34 of the Sales Tax Act, 1990:

    34. Default Surcharge.– (1) Notwithstanding the provisions of section 11, if a registered person does not pay the tax due or any part thereof, whether wilfully or otherwise, in time or in the manner specified under this Act, rules or notifications issued thereunder or claims a tax credit, refund or makes an adjustment which is not admissible to him, or incorrectly applies the rate of zero per cent to supplies made by him, he shall, in addition to the tax due, pay default surcharge at the rate mentioned below:—

    (a) the person liable to pay any amount of tax or charge or the amount of refund erroneously made, shall pay default surcharge at the rate of twelve per cent per annum, of the amount of tax due or the amount of refund erroneously made; and

    (c) in case, the default is on account of tax fraud, the person who has committed tax fraud shall pay default surcharge at the rate of two per cent per month, of the amount of tax evaded or the amount of refund fraudulently claimed, till such time the entire liability including the amount of default surcharge is paid.

    (2) For the purpose of calculation of default surcharge, –

    (a) in the case of inadmissible input tax credit or refund, the period of default shall be reckoned from the date of adjustment of such credit or, as the case may be, refund is received; and

    (b) in the case of non-payment of tax or part thereof, the period of default shall be reckoned from the 16th day of a month (following the due date of the tax period to which the default relates) to the day preceding the date on which the tax due is actually paid.

    Explanation.– For the purpose of this section tax due does not include the amount of penalty.

    (Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

    Tax officials may face criminal proceedings under ST Act
  • Major changes in sales tax regime on the cards

    Major changes in sales tax regime on the cards

    The government is set to introduce a finance supplementary bill which may bring major changes in sales tax regime, sources said on Wednesday.

    The sources said that in the Sales Tax Act, 1990, zero-rating under the Fifth Schedule is proposed to be streamlined and certain entries are to be withdrawn.

    Exemption regime under Sixth Schedule is proposed to be curtailed including pharmaceutical sector and restricted to import and local supply of essential commodities only.

    Reduced rates of sales tax under Eight Schedule on certain items are proposed to be streamlined in order to achieve equity in the tax system.

    Likewise, sales tax on import of high-end mobile phones in CBU condition under Ninth Schedule is proposed to be rationalized. The scope of Tier-1 retailers is also proposed to be rationalized.

    The government is also planning to bring changes in Customs Act, 1969.

    Under the Customs Act, 1969 the power of Collector to determine the value of imported or exported goods is proposed to be withdrawn which shall be exercised by Director Valuation that has been the case prior to Finance Act, 2021.

    Similarly, the appeal against the decision of DG Valuation shall hereinafter be filed before judicial for a instead of Member Customs (Policy) in consonance with the principle of separation of judicial and executive functions. Moreover, in the interest of revenue, corporate guarantee is proposed to be taken out as was the case before September 15, 2021.

    Minimal amendments in the Income Tax Ordinance, 2001 are aimed at promoting digital economy, documentation and facilitation measures. Additionally, advance tax on foreign produced drama serials is proposed to be introduced and slightly enhanced on cellular services.

    Disclosure of information in respect of high-level public officials is proposed in line with the requirements of the development partners, rule of law and integrity. Furthermore, Special Purpose Vehicle (SPV) under the REIT regulations, 2015 is proposed to be extended.

    During the tenure of the present Government far-reaching structural and administrative reforms have been initiated to achieve economic and financial stability through inclusive reforms and sustainable economic growth.

    The Federal Board of Revenue (FBR) is committed to achieve tax reforms with the assistance of development partners with the ultimate objective to be able to generate sufficient revenue for the State.

    The underlying purpose of reforms is also to rebuild the tax system on ideal principles of taxation and without any distortions. Amendments in tax laws, as outlined below, are warranted in order to achieve efficiency and equity in the tax systems through removal of aberrations, broaden the tax base, and document the economy.

    Tax officials may face criminal proceedings under ST Act
  • Tax officials may face criminal proceedings under ST Act

    Tax officials may face criminal proceedings under ST Act

    The Federal Board of Revenue (FBR) may initiate criminal proceedings under section 33A of Sales Tax Act, 1990 against tax officers/officials of the Inland Revenue for committing an act that results in undue benefit.

    The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

    Following is the text of section 33A of the Sales Tax Act, 1990:

    33A. Proceedings against authority and persons.–(1) Subject to section 51, the Board shall prescribe rules for initiating criminal proceedings against any authority mentioned in sections 30 to 30DDD, including any officer or official subordinate to the aforesaid authority, who wilfully and deliberately commits or omits an act which results in undue benefit or advantage to the authority or the officer or official or to any other person.

    (2) Where proceedings under sub-section (1) have been initiated against the authority or officer or official, the Board shall simultaneously intimate the relevant Government agency to initiate criminal proceedings against the person referred to in sub-section (1).

    (3) The proceedings under this section shall be without prejudice to any other liability that the authority or officer or official or the person may incur under any other law for the time being in force.

    READ MORE: Penalty for denying information sharing

    (Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

  • FBR postpones property valuation implementation

    FBR postpones property valuation implementation

    The Federal Board of Revenue (FBR) has opted to postpone the implementation of valuation tables for immovable properties following concerns raised by various stakeholders.

    (more…)
  • FBR hikes sales tax rates on petroleum products

    FBR hikes sales tax rates on petroleum products

    The Federal Board of Revenue (FBR) has issued a notification, SRO 1579(I)/2021, announcing revisions in the sales tax rates on various petroleum products, excluding petrol.

    (more…)
  • Penalty for denying information sharing

    Penalty for denying information sharing

    Section 56AB of Sales Tax Act, 1990 has revealed that a person is denying for sharing the information is liable to pay penalty.

    (more…)
  • Penalty for bringing goods illegally into Pakistan

    Penalty for bringing goods illegally into Pakistan

    The Sales Tax Act, 1990 has prescribed penalty for persons, being owner of the goods, which are brought to Pakistan in violation of section 40 of the Act.

    The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

    Following is the text of section 33(27) of the Sales Tax Act, 1990:

    33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –

    27. Any person, being owner of the goods, which are brought to Pakistan in violation of section 40D.

    Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of tax involved, whichever is higher:

    Further, such goods shall also be liable to confiscation. However, the adjudication authority, after such confiscation, may allow redemption of such goods on payment of fine which shall not be less than twenty percent of value, or retail price in case of items falling in Third Schedule, of such goods.

    READ MORE: Penalty on failure to print retail price

    (Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

  • Penalty on failure to print retail price

    Penalty on failure to print retail price

    The Federal Board of Revenue (FBR) has prescribed penalty for manufacturers and importers on failure to require mandatory printing of retail price on goods as envisaged under sub-section (27) of section 2 and clause (a) of sub-section (2) of section 3 of the Sales Tax Act, 1990.

    The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

    Following is the text of section 33(26) of the Sales Tax Act, 1990:

    33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –

    26. Any person, being a manufacturer or importer of an item which is subject to tax on the basis of retail price, who fails to print the retail price in the manner as stipulated under the Act.

    Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of tax involved, whichever is higher:

    Further, such goods shall also be liable to confiscation. However, the adjudication authority, after such confiscation, may allow redemption of such goods on payment of fine which shall not be less than twenty percent of the total retail price of such goods.

    READ MORE: Imprisonment for retailers on tax integration failure

    (Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

  • Imprisonment for retailers on tax integration failure

    Imprisonment for retailers on tax integration failure

    The Sales Tax Act, 1990 has prescribed penalty and imprisonment for retailers and manufacturers on failure to comply with the mandatory requirement of integration with the online system of the Federal Board of Revenue (FBR).

    The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

    Following is the text of section 33(24 and 25) of the Sales Tax Act, 1990:

    33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –

    24. Any person, who is integrated for monitoring, tracking, reporting or recording of sales, production and similar business transactions with the Board or its computerized system, conducts such transactions in a manner so as to avoid monitoring, tracking, reporting or recording of such transactions, or issues an invoice which does not carry the prescribed invoice number or barcode or bears duplicate invoice number or counterfeit barcode, or any person who abets commissioning of such offence.

    Such person shall pay a penalty of five hundred thousand rupees or two hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable, upon conviction by a Special Judge, to simple imprisonment for a term which may extend to two years, or with additional fine which may extend to two million rupees, or with both.

    Any person who abets commissioning of such offence, shall be liable, upon conviction by a Special Judge, to simple imprisonment for a term which may extend to one year, or with additional fine which may extend to two hundred thousand rupees, or with both.

    25. Any person, who is required to integrate his business for monitoring, tracking, reporting or recording of sales, production and similar business transactions with the Board or its computerized system, fails to get himself registered under the Act, and if registered, fails to integrate in the manner as required under the law.

    Such person shall be liable to pay a penalty up to one million rupees, and if continues to commit the same offence after a period of two months after the imposition of penalty as aforesaid, his business premises shall be sealed till such time he integrates his business in the manner as stipulated under sub-section (9A) of section 3 or section 40C, as the case may be.

    READ MORE: Penalty for selling cigarettes with counterfeit tax stamps

    (Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)