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 to get CNIC details of unregistered persons making purchases above Rs100,000

    FBR to get CNIC details of unregistered persons making purchases above Rs100,000

    ISLAMABAD: Federal Board of Revenue (FBR) will get CNIC details of unregistered persons making purchases above Rs100,000 through monthly sales tax return for July 2020 to be filed by registered persons in August 2020.

    The registered persons are required to provide details of all those unregistered persons who made purchases above Rs100,000. The information of CNIC of unregistered persons should be provided through sales tax return for the month of July 2020 in August 2020.

    Through Finance Act, 2019 the government made it mandatory for sales tax registered persons to provide information of unregistered persons including their CNICs, names and addresses on making supplies above Rs50,000.

    However, due to difficulties in implementation the condition was applied from August 2019. But due to dispute between FBR and retailers the implementation of this condition was remained inapplicable.

    Through Finance Act, 2020 the limit of purchases by unregistered persons has been enhanced to Rs100,000 effective from July 01, 2020.

    Section 23 of Sales Tax Act, 1990 requires the registered persons to provide the details of unregistered persons while issuing tax invoice.

    “Section 23. Tax Invoices.– (1) A registered person making a taxable supply shall issue a serially numbered tax invoice at the time of supply of goods containing the following particulars, in Urdu or English language, namely: –

    (a) name, address and registration number of the supplier;

    (b) name, address and registration, number of the recipient and NIC or NTN of the unregistered person, as the case may be, excluding supplies made by a retailer where the transaction value inclusive of sales tax amount does not exceed rupees fifty thousand, if sale is being made to an ordinary consumer.

    Explanation. – For the purpose of this clause, ordinary consumer means a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing:

    Provided that the condition of NIC or NTN shall be effective from 1st August, 2019;

    (c) date of issue of invoice;

    (d) description including count, denier and construction in case of textile yarn and fabric, and quantity of goods;

    (e) value exclusive of tax;

    (f) amount of sales tax; and

    (ff)

    (g) value inclusive of tax:

    Provided that the Board may, by notification in the official Gazette, specify such modified invoices for different persons or classes of persons;

    Provided further that not more than one tax invoice shall be issued for a taxable supply:

    Provided also that if it is subsequently proved that CNIC provided by the purchaser was not correct, liability of tax or penalty shall not arise against the seller, in case of sale made in good faith.

    (2) No person other than a registered person or a person paying retail tax shall issue an invoice under this section.

    (3) A registered person making a taxable supply may, subject to such conditions, restrictions and limitations as the Board may, by notification in the official Gazette, specify, issue invoices to another registered person electronically and to the Board as well as to the Commissioner, as may be specified.

    (4) The Board may, by notification in the Official Gazette, prescribe the manner and procedure for regulating the issuance and authentication of tax invoices.”

  • FBR grants Rs2.42 billion as income tax concession to teachers, researchers

    FBR grants Rs2.42 billion as income tax concession to teachers, researchers

    ISLAMABAD: The Federal Board of Revenue (FBR) has provided significant tax exemptions amounting to Rs2.42 billion on the income of teachers and researchers during the tax year 2019–2020.

    (more…)
  • FBR stops public auction of confiscated foreign origin cigarettes

    FBR stops public auction of confiscated foreign origin cigarettes

    ISLAMABAD: Federal Board of Revenue (FBR) has stopped public auction of foreign origin smuggled cigarettes as those goods do not comply with the national health regulations.

    In a statement issued on Saturday, the FBR clarified that the auction of confiscated smuggled cigarettes of foreign origin have been stopped which were earlier decided to hold by field formations.

    The decision to stop the auction of confiscated cigarettes of foreign origin has been taken as the packing of the aforementioned cigarettes do not comply with the national health regulations, FBR added.

    As per conditions imposed by the Ministry of National Health Services, Regulations and Coordination, warning of serious health hazards must be printed both graphically as well as textually in Urdu language for bewaring the general public as laid down in SROs 127(KE)/2017 & 128(KE)/2017 both dated 19-12-2017 and SRO DE/2019 dated 22-1-2019.

    In order to avoid carrying out any inadvertent act or procedure that is inconsistent with the national health laws and regulations, confiscated cigarettes of foreign origin have been excluded from the public auction through an amendment issued vide notification N. SRO 638(I)/2020 dated 23-7-2020 in the relevant provisions of the Customs Rules, 2001 (Rule 58(3) in Chapter V).

    FBR further added that the confiscated cigarettes shall not be put to auction and shall be destroyed in the manner as prescribed by Board.

  • PSX to collect 3pc income tax on payments to non-residents

    PSX to collect 3pc income tax on payments to non-residents

    The Pakistan Stock Exchange (PSX) has been mandated to apply a reduced rate of three percent income tax on payments to non-residents, according to officials from the Federal Board of Revenue (FBR).

    (more…)
  • Rate of capital gains tax on disposal of securities

    Rate of capital gains tax on disposal of securities

    KARACHI: Following is the rate of capital gains tax on disposal of securities after the amendment made through Finance Act, 2020.

    Officials at the Federal Board of Revenue (FBR) said that the rate of capital gains tax had been kept unchanged for tax year 2021 and subsequent years.

    cgt on disposal of securities.jpg

    Provided that the rate of tax on cash settled derivatives traded on the stock exchange shall be 5 percent for the tax years 2018 to 2020.

    Provided that the rate for companies shall be as specified in Division II of Part I of First Schedule, in respective of debt securities;

    Provided further that a mutual fund or a collective investment scheme or a REIT scheme shall deduct Capital Gains Tax at the rates as specified below, on redemption of securities as prescribed, namely:—

    CategoryRate
    Individual and association of persons10 percent for stock funds 10 percent for other funds
    Company10 percent for stock funds 25 percent for other funds

    Provided further that in case of a stock fund if dividend receipts of the fund are less than capital gains, the rate of tax deduction shall be 12.5 percent:

    Provided further that no capital gains tax shall be deducted, if the holding period of the security is more than four years.”

    Explanation.- For removal of doubt, it is clarified that, the provisions of this proviso shall be applicable only in case of a mutual fund or collective investment scheme or a REIT scheme.

  • Persons not on ATL to pay advance tax on educational fee

    Persons not on ATL to pay advance tax on educational fee

    ISLAMABAD: Persons not appearing on Active Taxpayers List (ATL) are liable to pay advance income tax at the time of paying educational fee.

    Officials at Federal Board of Revenue (FBR) said that through Finance Act, 2020 the condition of paying advance tax under Section 236I of Income Tax Ordinance, 2001 on educational fee had been abolished for persons appearing on ATL.

    However, those persons not appearing on ATL shall remain required to pay advance income tax on payment of educational fee.

    Similarly, the educational institutions are required to provide details of those persons who are not ATL and making fee above Rs200,000 per annum.

    The rate of collection of tax under section 236I shall be 5 percent of the amount of fee for persons not appearing on ATL.

    The collection of advance income tax on payment of educational fee was introduced through Finance Act, 2013. The purpose of introducing the advance tax on such transaction was to bring those people into tax net who have taxable income but not paying their tax liability.

    The FBR officials said that after changes brought through Finance Act 2020, only those persons who are not on the ATL shall pay advance income tax.

    However, this tax shall be adjustable against income tax liability in case that person files his income tax return and ensure his name on the ATL.

  • LTU Karachi to hold e-Katcheri on July 24

    LTU Karachi to hold e-Katcheri on July 24

    KARACHI: Large Taxpayers Unit (LTU) Karachi will hold e-Katcheri on July 24, 2020 for efficient service delivery and ensure public trust.

    The program has been launched in compliance with the directive of the prime minister to conduct e-Khuli Katcheri to stay in contact with the public by all available means and provide them accessible platform to raise their issues for timely resolution.

    In this regard Badaruddin Ahmed Qureshi, Chief Commissioner Inland Revenue, LTUK Karachi will conduct e-Khuli Katcheri on Friday from 11:30 AM to 12:30 noon through Zoom video link.

    The taxpayers facilitation wing of the FBR recently circulated about the program directing that e-Katcheri would be conducted by every tier of FBR in the second week of every month on regular basis.

    The FBR directed all the tax offices to ensure that all proceedings of the e-Katcheri are property recorded and tasks should be assigned to concerned officers accordingly.

    The tax offices have also been directed to submit performance report on the outcome of the meeting with public.

    In the wake of COVID-19, the tax authorities shall conduct one e-Katcheri at all tiers of FBR in the second week of every month. In the backdrop of COVID-19, only e-Katcheris shall be conducted for the time being until normalcy of the situation.

  • Banks, exchange companies no more required to give details of remittances sent abroad for education

    Banks, exchange companies no more required to give details of remittances sent abroad for education

    ISLAMABAD: Federal Board of Revenue (FBR) shall not ask banks and exchange companies to provide details of persons sending remittances abroad related to education.

    Through Finance Act, 2020, the Section 236R of Income Tax Ordinance, 2001 has been omitted. This section was introduced for collection of advance tax on education related expenses remitted abroad.

    This section was introduced through Finance Act 2015 under which banks, financial institutions, foreign exchange companies or any other person responsible for remitting foreign currency abroad shall collect advance tax at the rate of five percent from the payer of education related expenses.

    Tax collected under the section was adjustable against the income of the person remitting payment of education related expenses.

    The section defined “education related expenses” as 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.

    This section was an important source of gathering information of those persons having taxable income in Pakistan and sending foreign exchange abroad taking advantage of education expenses.

    Under Section 165 of Income Tax Ordinance, 2001, withholding agents are required to provide details of persons including CNIC, NTN and addresses, whose tax was deducted at the time of transaction.

    However, deletion of this section the banks and exchange companies would no more required to share details of persons who are sending foreign exchange abroad for education related expenses.

  • FBR promotes 106 IRS officers to BS-18

    FBR promotes 106 IRS officers to BS-18

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday promoted 106 officials of Inland Revenue Service (IRS) to BS-18 on regular basis and acting charge basis with immediate effect.

    The following BS-17 officers of IRS are promoted to BS-18 on regular basis with immediate effect:-

    1. Ms. Sadeea Nadeem

    2. Ali Ahsan Warraich

    3. Ms. Mahwash Sami *

    4. Muhammad Hussain Shah

    5. Muhammad Zeeshan

    6. Ms. Alvina Fatima

    7. Ms. Kiran Zahra

    8. Ms. Alia Khurshid

    9. Amir Yasin

    10. Ms. Madiha Batool

    11. Ms. Saira Khan

    12. Amir Aslam

    13. Ms. Seemab Zafar

    14. Ms. Sana Ghous

    15. Ms. Angel David

    16. Ms. Romesa Tahir

    17. Arsalan Khan

    18. Hammad Hussain Jaffari

    19. Syed Faizan Ali Zaidi

    20. Muhammad Mauz Zafar

    21. Muhammad Hussnain Shamim

    22. Usman Azam Bhatti

    23. Ghulam Hussain Yassir

    24. Malik Samiullah Khan *

    25. Faizan Ahmad

    26. Ms. Anum Tahir

    27. Muhammad Naveed

    28. Gobind Kumar

    29. Adnan Jabbar

    30. Zahoor Ahmad

    31. Waseem Ahmed

    32. Ms. Shaista

    33. Waqar Ahmed

    34. Ghufran Syed

    35. Muhammad Nasir Javid *

    36. Dr. Aneela Javed Gondal *

    37. Syed Nasir Jamal Shah

    38. Mohsin Ihsan

    39. Ms. Rosheen Hussain Syed

    40. Muhammad Qamar Minhas

    41. Ejaz Qaisar

    42. Akhtar Saleem

    43. Kamran Shahab

    44. Usman Sadiq

    45. Muhammad Kashif Ahmad

    46. Muhammad Siddique

    47. Khawar Yaqoob

    48. Muhammad Ansir Ali khan

    49. Talib Hussain

    50. Suhbat Ali Sahto

    51. Shahid Nawaz

    52. Syed Abaid ur Rehman

    53. Atif Nawaz Warriach

    54. Muhammad Nadeem Asad

    55. Muhammad Shah Jahan Durrani

    56. Ms. Hina Mustafa

    57. Wazir Ahmad Khushik

    58. Zufiqar Ali Memon

    59. Javed Alam

    60. Anees Ahmad

    61. Ms. Tabinda Shaheen

    62. Roshan Ali

    63. Ms. Sorath Sadiq Chandio

    64. Muhammad Jamshed Khan

    65. Muhammad Naeem Afzal Khan

    66. Sanaullah

    67. Abdul Waheed Awan

    The FBR said that the officers shall actualize their regular promotion to BS-18 at their present place of posting.

    The officers at Sr. Nos. 03, 24, 35 & 36 will actualize their promotion to BS-18 from the date they return from deputation and join FBR (Hq), Islamabad.

    The following BS-17 officers of Inland Revenue Services are appointed in BS-18 on acting charge basis with immediate effect:-

    1. Hayat Omer Malik

    2. Ms. Tooba Ahmed Khan

    3. Ms. Saman Zahra

    4. Ms. Bushra Ranjha

    5. Ahmad Faiz

    6. Ms. Mehak Fatima

    7. Ms. Namra Ijaz

    8. Ms. Fatima Anjum

    9. Ray Muhammad Najam Nawaz Saqib

    10. Ms. Shahida Nazeer

    11. Muhammad Naeem Orakzai

    12. Ms. Rafia Nawaz Ranjha

    13. Usama Amin

    14. Ms. Komal Altaf

    15. Ms. Maheen Ali

    16. Ms. Rabia Haider Bokhari

    17. Kamran Hussain

    18. Muhammad Safian Adeel

    19. Sohail Anjum

    20. Ms. Farah Khan

    21. Shahzad Akbar

    22. Ms. Mehreen Yousaf

    23. Ali Raza Gilani

    24. Najam-ul-Hassan

    25. Ms. Sania Makhdoom

    26. Khan Muhammad

    27. Aamir Hussain

    28. Ali Khalid

    29. Ms. Samayya Qayyum

    30. Ms. Javeria Hayat

    31. Ms. Amna Sharif *

    32. Arsalan Ali

    33. Abdullah Zulfiqar

    34. Abdul Baseer Khan Khattak

    35. Ms. Sanam Rasool

    36. Ahmad Taimoor

    37. Usman Asif

    38. Rizwan Manzoor *

    39. Ms. Aqsa Gharshin

    The above officers shall actualize their appointment in BS-18 on acting charge at their present place of posting.

    The officers at Sr. Nos. 31 & 38 will actualize their appointment from the date they return from deputation and join FBR (Hq), Islamabad.

  • FBR abolishes regulatory duty on wheat import

    FBR abolishes regulatory duty on wheat import

    ISALAMABAD: Federal Board of Revenue (FBR) on Tuesday abolished regulatory duty on import of wheat in order to bring down domestic price of the commodity.

    The FBR issued SRO 633(I)/2020 in order to amend SRO 6809I)/2019 dated June 28, 2019.

    Through the SRO the FBR reduced the regulatory duty to zero from 60 percent.

    FBR sources said that the decision to abolish the regulatory duty was take to encourage import of the commodity in order to ensure buffer stock at home and maintain retail price at lower side.