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.
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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.
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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.)
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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.)
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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.)
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Penalty for selling cigarettes with counterfeit tax stamps
The Sales Tax Act, 1990 has prescribed penalty and imprisonment for manufacturing, possessing, transporting, distributing, storing or selling cigarettes with counterfeited tax stamps.
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(23) 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: –
23. Any person who manufactures, possesses, transports, distributes, stores or sells cigarette packs with counterfeited tax stamps, banderoles, stickers, labels or barcodes or without tax stamps, banderoles, stickers, labels or barcodes
(i) Such cigarette stock shall be liable to outright confiscation and destruction. Any person committing the offence shall pay a penalty of twenty-five thousand rupees or one 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 three years, or with additional fine which may extend to an amount equal to the loss of tax involved, or with both.
(ii) In case of transport of cigarettes with counterfeited tax stamps, banderoles, stickers, labels or barcodes, or without tax stamps, banderoles, stickers, labels or barcodes, permanent seizure of the vehicle used for transportation of non-conforming or counterfeit cigarette packs; and
(iii) In case of repeat sale of cigarettes without or with counterfeited, tax stamps, banderoles, stickers, labels or barcodes, the premises used for such sale be sealed for a period not exceeding fifteen days.
READ MORE: Imprisonment for unauthorized access to tax system
(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.)
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Imprisonment for unauthorized access to tax system
Any person who knowingly and without lawful authority gains access to or attempts to gain access to the computerized system shall be liable for imprisonment as stated in 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(22) 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: –
22. Any person who,-
(a) knowingly and without lawful authority gains access to or attempts to gain access to the computerized system; or
(b) unauthorizedly uses or discloses or publishes or otherwise disseminates information obtained from the computerized system; or
(c) falsifies any record or information stored in the computerized system; or
(d) knowingly or dishonestly damages or impairs the computerized system; or
(e) knowingly or dishonestly damages or impairs any duplicate tape or disc or other medium on which any information obtained from the computerized system is kept or stored; or
(f) unauthorizedly uses unique user identifier of any other registered user to authenticate a transmission of information to the computerized system; or
(g) fails to comply with or contravenes any of the conditions prescribed for security of unique user identifier.
Such person shall pay a penalty of twenty-five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable, upon conviction by the Special Judge, to imprisonment for a term which may extend to one year, or with fine
which may extend to an amount equal to the loss of tax involved, or with both.
READ MORE: Penalties under Section 33 (15-21) of Sales Tax Act
(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.)
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Penalties under Section 33 (15-21) of Sales Tax Act
Various penalties have been prescribed under Section 33 (15, 16, 17, 18, 19, 21) of Sales Tax Act, 1990, issued by 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(15, 16, 17, 18, 19, 21) 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: –
15. Any person who obstructs the authorized officer in the performance of his official duties. (Section 31 & General)
Such person shall pay a penalty of twenty-five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher.
16. Any person who fails to make payment in the manner prescribed under section 73 of this Act. (Section 73)
Such person shall pay a penalty of five thousand rupees or three per cent of the amount of tax involved, whichever is higher.
17. Any person who fails to fulfil any of the conditions, limitations or restrictions prescribed in a Notification issued under any of the provisions of this Act. (Section 71 & General)
Such person shall pay a penalty of five thousand rupees or three per cent of the amount of tax involved, whichever is higher.
18. Where any officer of Inland Revenue authorized to act under this Act, acts or omits or attempts to act or omit in a manner causing loss to the sales tax revenue or otherwise abets or connives in any such act.
Such officer of Inland Revenue shall be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to amount equal to the amount of tax involved, or with both.
19. Any person who contravenes any of the provision of this Act or the rules made thereunder for which no penalty has, specifically, been provided in this section.
Such person shall pay a penalty of five thousand rupees or three per cent of the amount of tax involved, whichever is higher.
21. Where any person repeats an offence for which a penalty is provided under this Act Such person shall pay twice the amount of penalty provided under the Act for the said offence.
(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.)
READ MORE: Penalty for violating embargo placed on goods removal
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PTBA highlights taxation problem of NPOs, Trust
KARACHI: Pakistan Tax Bar Association (PTBA) has highlighted problems faced by Non-Profit Organizations (NPOs) and Trust in changing their status as envisaged under Income Tax Ordinance, 2001.
The PTBA said on Saturday it has sent a letter to the chairman of the Federal Board of Revenue (FBR) in this regard.
The tax bar pointed out an important aspect, which needs a prompt response from the FBR regarding the change in the definition of ‘company’ vide amendment made in section 80(2)(va) and (vb) through Finance Act, 2013:
“(va) a non-profit organization;
(vb) a trust, an entity or body of persons established or constituted by or under any law for the time being in force”
Earlier to this amendment, such organizations were assigned the status of “AOP” by the FBR.
After the said amendment the status of all such organizations should be changed from AOP to Company. But due to systemic error existing in IRIS; a number of such organizations still have the status of AOP in the IRIS system.
A number of such organizations have applied for approval under section(s) 2(36)/100C of the Income Tax Ordinance, 2001 but these have not been processed due to the reason that these organizations are not appearing in the folder of the relevant Commissioner of Corporate Tax Offices (CTOs), who has been assigned the power of approval under section 2(36)/100C of the Income Tax Ordinance, 2001.
In the light of the above-stated facts, the PTBA urged the FBR chairman to issue necessary instructions to PRAL to change the status of all such organizations from AOP to Company, so that the concerned commissioners can process the applications filed under section(s) 2(36)/100C of the Income Tax Ordinance, 2001.
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FBR identifies 482 retailers for POS integration
ISLAMABAD: The Federal Board of Revenue (FBR) has identified 482 retailers for mandatory integration of Point of Sale (POS) with the tax online system for sharing sales in real-time.
The FBR issued the list of 482 retailers by notifying Sales Tax General Order (STGO) No. 6 of 2022 dated December 03, 2021.
The FBR said that the Finance Act, 2019 added sub-section (6) to section 811 of the Sales Tax Act, 1990 whereby a Tier-1 Retailer who did not integrate its retail outlet in the manner prescribed under sub-section (9A) of section 3 of the Sales Tax Act, 1990 during a tax period, its adjustable tax for that period would be reduced by 15 per cent. The figure of 15 per cent has been raised to 60 per cent vide Finance Act, 2021.
READ MORE: POS installation offers reduced tax rates: LTO Karachi
In order to operationalize this important provision of law, a system-based approach has been adopted whereby all Tier-1 retailers who are liable to integrate but have not yet integrated, with effect from July-2021 (Sales Tax Returns filed in August 2021) are to be dealt with as per the procedure laid down in STGO No. 1 of 2022 issued on August 03, 2021.
Vide the instant STGO No. 6, a list of 482 identified tier-1 retailers has been placed on FBR’s web portal at www.fbr.gov.pk allowing them to integrate with FBR’s system by December 10, 2021, and the procedure of exclusion from this list of 482 identified retailers shall apply as laid down in Para 2 of STGO 1 of 2022 dated 03.8.2021.
Upon the filing of Sales Tax Return for the month of November 2021 for all hereby notified retailers not having yet integrated, their input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount.