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Tag: FBR

Get the latest FBR news, tax updates, income tax, sales tax, customs, notifications, and policies from the Federal Board of Revenue.

  • FBR to prescribe valuation method for used vehicles

    FBR to prescribe valuation method for used vehicles

    ISLAMABAD: Federal Board of Revenue (FBR) will prescribe method for valuation of used vehicles for the purpose of sales tax.

    FBR sources said that amendment has been made to Sales Tax Act, 1990 through Finance Act, 2020 related to value of supply of used vehicles.

    According to the amendment, in case of registered person who is engaged in purchasing used vehicles from general public on which sales tax had already been paid at the time of import or manufacturing, and which paid at the time of import or manufacturing, and which are, later on, sold in the open market after making certain value addition, value of supply will be difference between sale and purchase price of the said vehicles on the basis of the valuation method prescribed by the board [FBR].

  • Procedure for alternate dispute resolution

    Procedure for alternate dispute resolution

    ISLAMABAD: Federal Board of Revenue (FBR) has laid down procedure for alternate dispute resolution (ADR) in order to provide a platform to taxpayers for expeditious resolution of their cases.

    A new section 134A has been introduced to Income Tax Ordinance, 2001 through Finance Act 2020.

    Section 134A. Alternative dispute resolution.

    (1) Notwithstanding any other provision of this Ordinance, or the rules made thereunder, an aggrieved person in connection with any dispute pending before a court of law or an appellate authority pertaining to—

    (a) the liability of tax against the aggrieved person, or admissibility of refunds, as the case may be;

    (b) the extent of waiver of default surcharge and penalty; or

    (c) any other specific relief required to resolve the dispute, may apply to the Board for the appointment of a committee for the resolution of any hardship or dispute mentioned in detail in the application, which is under litigation in any court of law or an appellate authority, except where criminal proceedings have been initiated or where interpretation of question of law having effect on identical cases is involved having effect on other cases.

    (2) The Board may, after examination of the application of an aggrieved person, appoint a committee, within sixty days of receipt of such application in the Board, comprising,—

    (i) Chief Commissioner Inland Revenue having jurisdiction over the case;

    (ii) two persons from a panel notified by the Board comprising of chartered accountants, cost and management accountants, advocates, having minimum of ten years’ experience in the field of taxation and reputable businessmen.

    (3) The Board shall communicate the order of appointment of committee to the court of law or the appellate authority where the dispute is pending and the Commissioner.

    (4) The Committee appointed under sub-section (2) shall examine the issue and may, if it deemed necessary, conduct inquiry, seek expert opinion, direct any officer of the Inland Revenue or any other person to conduct an audit and shall decide the dispute through consensus, within one hundred and twenty days of its appointment.

    (5) The Committee may, in case of hardship, stay recovery of tax payable in respect of dispute pending before it for a period not exceeding one hundred and twenty days in aggregate or till the decision of the committee or its dissolution, whichever is earlier.

    (6) The decision of the committee under sub-section (4) shall be binding on the Commissioner when the aggrieved person, being satisfied with the decision, has withdrawn the appeal pending before the court of law or any appellate authority and has communicated the order of withdrawal to the Commissioner:

    Provided that if the order of withdrawal is not communicated to the Commissioner within sixty days of the service of decision of the committee upon the aggrieved person, the decision of the committee shall not be binding on the Commissioner.

    (7) If the Committee fails to decide within the period of one hundred and twenty days under sub-section (4), the Board shall dissolve the committee by an order in writing and the matter shall be decided by the court of law or the appellate authority where the dispute is pending.

    (8) The Board shall communicate the order of dissolution to the court of law or the appellate authority and the Commissioner.

    (9) The aggrieved person, on receipt of the order of dissolution, shall communicate it to the court of law or the appellate authority, where the dispute is pending.

    (10) The aggrieved person may make the payment of income tax and other taxes as decided by the committee under sub-section (4) and all decisions and orders made or passed shall stand modified to that extent.

    (11) The Board may prescribe the amount to be paid as remuneration for the services of the members of the committee, other than the member appointed under clause (i) of sub-section (2).

    (12) The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section.

  • FBR extends warehousing period up to July 31

    FBR extends warehousing period up to July 31

    ISLAMABAD: The Federal Board of Revenue (FBR) has taken a significant step by extending the warehousing period for already in-bonded goods up to July 31, 2020.

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  • Taxpayers need to update profile to ensure active status

    Taxpayers need to update profile to ensure active status

    ISLAMABAD: Taxpayers are mandatorily required to update their profit in order to keep their name in the Active Taxpayers List (ATL), sources in Federal Board of Revenue (FBR) said.

    Amendment has been made to Income Tax Ordinance, 2001 through Finance Act, 2020, which is approved by the National Assembly.

    A new sub-section 2 has been included to Section 182A of the Ordinance, to make it mandatory for taxpayers to update their profile on the FBR’s online system in order to ensure their names are on the ATL.

    The new sub-section is read as:

    “(2) Where a person fails to furnish or update a taxpayer’s profile within due date or time specified in sub-section (3) of Section 114A or within the date as extended by the Board (FBR) under Section 214A, such person shall not be included in the active taxpayers’ list for the latest tax year ending prior to the aforesaid due date or extended date:

    “Provided that without prejudice to any other liability under this ordinance, such person shall be included in the active taxpayers’ list upon filing the taxpayers’ profile after the due date or extended date, if the person pays surcharge at Rupees –

    (a) twenty thousand in case of a company;

    (b) ten thousand in case of an association of persons; and

    (c) one thousand in case of an individual.”

    Through the Finance Act, 2020 fine and penalty have also been prescribed:

    Any person who is required to furnish or update a taxpayer’s profit but fails to furnish or update within the due date: such a person shall pay a penalty of Rs2500 for each day of default from the due date subject to a minimum penalty of Rs10,000.

  • Period for filing withholding tax statement reduced

    Period for filing withholding tax statement reduced

    ISLAMABAD: Withholding agents are required to file statement of deduction and collection on quarterly basis instead bi-annual.

    The change has been brought through Finance Act, 2020 by amending section 165 of the Income Tax Ordinance, 2001.

    Sources in Federal Board of Revenue (FBR) said that the change was brought on the proposal of business community as submission of record bi-annual was creating difficulties.

    The withholding statement was required to file on monthly basis. However, through Finance Supplementary (Second Amendment) Act, 2019 the relevant law was amendment and it was made on bi-annual basis.

    And now it is again reduced to quarterly basis through Finance Act 2020.

    The FBR sources said that the withholding statement is required to be submitted on:

    (a) in respect of quarter ending on the 31st day of March, on or before the 20th day of April;

    (b) in respect of quarter year ending on the 30th day of June, on or before the 20th day of July;

    (c) in respect of quarter ending on the 30th day of September, on or before the 20th day of October; and

    (d) in respect of quarter ending on or before the 31st day of December, on or before the 20th January.

    The FBR sources said that the withholding agents would provide following details of persons whose tax were deducted along with the statement, which would include:

    (a) the name, Computerized National Identity Card Number, National Tax Number and address of each person from whom tax has been collected under Division II of this Part or Chapter XII or the Tenth Schedule or to whom payments have been made from which tax has been deducted under Division III of this Part or Chapter XII or the Tenth Schedule in each quarter.

    (b) the total amount of payments made to a person from which tax has been deducted under Division III of this Part or Chapter XII or the Tenth Schedule in each quarter.

    (c) the total amount of tax collected from a person under Division II of this Part or Chapter XII or the Tenth Schedule or deducted from payments made to a person under Division III of this Part or Chapter XII or the Tenth Schedule in each quarter; and

    (d) such other particulars as may be prescribed:

    Provided that every person as provided in sub-section (1) shall be required to file withholding statement even where no withholding tax is collected or deducted during the period.

    Explanation.— For the removal of doubt, it is clarified that this sub-section overrides all conflicting provisions contained in the Protection of Economic Reforms Act, 1992 (XII of 1992), the Banking Companies Ordinance, 1962 (LVII of 1962), the Foreign Exchange Regulation Act, 1947 (VII of 1947) and the regulations made under the State Bank of Pakistan Act, 1956 (XXXIII of 1956), if any, on the subject, in so far as divulgence of information under section 165 is concerned.

  • FBR promotes 29 officials to post of assistant private secretary

    FBR promotes 29 officials to post of assistant private secretary

    ISLAMABAD: Federal Board of Revenue (FBR) has notified promotions of 29 steno-typists (BS-14) to the post of Assistant Private Secretary (BS-16).

    In a notification issued on Friday (July 10) the FBR notified promotions of following officials:

    01. Aurangzeb, RTO, Peshawar

    02. Waseem Iqbal, RTO, Islamabad

    03. Sulaiman Ahmed, RTO, Islamabad

    04. Allah Ditta, RTO, Rawalpindi

    05. Syed Shafqat Abbas, RTO, Gujranwala

    06. Iftikhar Ahmad Naseer, RTO, Gujranwala

    07. Syed Riaz Ahmad, RTO, Gujranwala

    08. Muhammad Abbas, RTO, Gujranwala

    09. Shabbir Ahmed, CRTO, Lahore

    10. Muhammad Yousaf, CRTO, Lahore

    11. Bashir Ahmed, RTO, Sargodha

    12. Muhammad Feroz, RTO, Sargodha

    13. Zia Rasool, RTO, Multan

    14. Saeed Ahmad, RTO, Bahawalpur

    15. Muhammad Ahmed, RTO, Bahawalpur

    16. Nasir Ali Khan, RTO, Hyderabad

    17. Muhammad Shafique, RTO, Hyderabad

    18. Muhammad Abid, CRTO, Karachi

    19. Syed Ghufran Ahmed, CRTO, Karachi

    20. Zuhair Ahmed, CRTO, Karachi

    21. Abdul Shakoor Awan, CRTO, Karachi

    22. Shafiq ur Rehman, CRTO, Karachi

    23. Ms. Shahla Riaz, CRTO, Karachi

    24. Syed Riffat Farid Nizami, CRTO, Karachi

    25. Munawar Ali, CRTO, Karachi

    26. Anisur Rehman, CRTO, Karachi

    27. Ms. Kausar Jehan, CRTO, Karachi

    28. Hussain Ahmed, CRTO, Karachi

    29. Syed Qamar ul Hassan, CRTO, Karachi

    The FBR said that the promotion would take effect from the date of their joining, subject to the condition that no disciplinary proceedings are pending against them.

    The FBR further said that the officials would be on probation for a period of one year, extendable for further period not exceeding one year, provided that if no order is issued by the day following the termination of probationary period, the appointment shall be deemed to be held until further orders.

  • FBR empowered to recover income tax on sectoral benchmark basis

    FBR empowered to recover income tax on sectoral benchmark basis

    ISLAMABAD: The officials of Federal Board of Revenue (FBR) have been authorized to recover income tax on sectoral benchmark ratio basis where a taxpayer fails to provide record or required details.

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  • FBR issues draft rules for allowing reduced income tax rate on import of raw materials

    FBR issues draft rules for allowing reduced income tax rate on import of raw materials

    ISLAMABAD: Federal Board of Revenue (FBR) has issued draft rules for grant of concessional tax rate on import of raw materials and capital goods by manufacturers and exporters.

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  • Fee for filing tax appeals increased substantially

    Fee for filing tax appeals increased substantially

    ISLAMABAD: A substantial increase has been made to fee amount for filing appeal against an assessment order. The increase has been made part of statute through Finance Act, 2020.

    Officials at Federal Board of Revenue (FBR) said that an amendment to sub-section 4 of the Section 127 of Income Tax Ordinance, 2001 has been made through Finance Act, 2020. Prior to this amendment the fee amount of Rs1,000 was prescribed for all taxpayers for filing appeal.

    However, through the amendment the prescribed fee shall be Rs5,000 in case of company and Rs2,500 in case of other than a company.

    The fee for filing appeal in other than assessment cases has also been increased. The fee in case of company has been increased to Rs5,000 from Rs1,000. In case of other than company the fee amount has been increased to Rs1,000 from Rs200.

    Another amendment has been made to section 131 of the Income Tax Ordinance, 2001 regarding fee for filing appeal before appellate tribunal.

    Prior to the amendment an amount of Rs2,000 was prescribed as fee for filing appeal. However, post amendment the prescribed fee shall be Rs5,000 in case of a company and Rs2,500 in case of other than a company.

  • FBR to adopt new measures to achieve Rs4,963 billion collection target

    FBR to adopt new measures to achieve Rs4,963 billion collection target

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to take new enforcement and administrative measures to achieve revenue collection target of Rs4,963 billion assigned for current fiscal year.

    The federal government in the latest budget assigned FBR to collect Rs4,963 billion during 2020/2021, which is 25 percent higher than the collection of Rs3,957 billion collected during 2019/2020.

    In order to achieve the revenue collection target of current fiscal year the FBR chairman directed chief commissioners and chief collectors to submit their proposals and suggestions for taking new administrative and enforcement measures.

    The FBR sought the proposals for increasing revenues and plugging loopholes.

    All chief commissioners and chief collectors have been asked to furnish their proposals by July 15, 2020.

    It is worth mentioning that the FBR was assigned Rs5,550 billion revenue collection target during fiscal year 2019/2020 however due to slow economic activities early in the fiscal year and adverse impact on economy due to coronavirus the revenue collection significantly declined.

    Later considering the situation the FBR was assigned the reduced collection target of Rs3,907 billion, which was surpassed by more than Rs50 billion.

    Despite the achievement of revenue collection target the FBR chairperson Ms. Nausheen Javaid Amjad was removed from the post and Muhammad Javaid Ghani was assigned additional charge of the post of FBR chairman.

    Sources in the FBR said that the administrative and enforcement measures would only work when a regular chairman has been appointed.