The Federal Board of Revenue (FBR) has taken a significant step to boost the textile industry by withdrawing the five percent regulatory duty on the import of cotton yarn.
(more…)Tag: Federal Board of Revenue
The Federal Board of Revenue is Pakistan’s apex tax agency, overseeing tax collection and policies. Pakistan Revenue is committed to providing timely updates on the Federal Board of Revenue to its readers.
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Tax rate at 15 percent applicable on profit on debt: FBR
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday said that the general rate of tax is 15 percent on yield on investments. However, it is reduced at 10 percent where annual profit is below Rs500,000.
The FBR issued Income Tax Circular No. 07 of 2020 to clarify tax rate under Section 151 of the Income Tax Ordinance, 2001.
The FBR said: “General rate of tax deduction on profit on dent under Section 151 of the Income Tax Ordinance, 2001 is 15 percent of the profit.
“However, provision to the Division IA of the Part III of the First Schedule to the Income Tax Ordinance, 2001, provides that tax rate shall be 10 percent in case where the taxpayer furnishes a certificate to the payer of the profit on debt that during the tax year, total yield or profit payable in this case shall remain at Rs500,000 or less.”
The FBR said that queries had been received regarding the nature or format of the certificate.
“The required certificate is to be furnished by the recipient of the profit on debt to the payer of such profit to the effect that total profit on debt received/receivable during the tax year from all investments in his case shall not exceed Rs500,000,” the FBR said, adding that the requisite certificate can be submitted on plain paper.
According to the withholding tax card for tax year 2021 issued by the FBR, the profit on debt may be on account of deposit, account or a certificate under the National Saving Schemes or Post office savings account.
Besides, the same rates shall be applicable on profit on debt paid by a banking company or financial institution on account or deposit maintained.
Furthermore, the tax rates are also applicable on profit on bonds, certificates, debentures, securities or instruments of any kind (other than loan agreements between borrowers and banking companies or development financial institutions.
The tax rate of 15 percent shall be increased by 100 percent to 30 percent for persons not appearing on Active Taxpayers List (ATL).
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FBR directs conducting audit to cross match turnover
ISLAMABAD: Federal Board of Revenue (FBR) has directed field offices to conduct desk audit of returns filed for tax year 2020 to cross match turnover for avoiding misuse/mis-declaration.
The FBR on Tuesday said that it had clarified on December 03, 2020 on ‘technical issue in filing of tax return 2020 dated December 03, 2020’ on a communication sent by Lahore Chamber of Commerce and Industry (LCCI).
The LCCI had requested for clarification regarding the treatment of closing stock at the time of change of taxation regime from final to minimum tax.
The FBR said that the chamber had pointed out in case of importers, the tax collected at import stage during tax year 2019 had come final tax at the time of collection, therefore, the turnover or income arising from the disposal of such closing stock should not be included in taxable income for tax year 2020 as this would result in double taxation.
The FBR said that it had examined the matter. “The turnover resulting from disposal of closing stock already declared under Final Tax Regime (FTR) in previous tax year should not make part of next year’s turnover as it would be tantamount to double taxation. Therefore, such turnover should not be declared in the column of ‘subject to NTR [Normal Tax Rate] for tax year 2020.”
The FBR further said: “In order to void misuse/mis-declaration, field formation, are required to conduct desk audit/audit of all such cases for tax year 2020 and cross match turnover with relevant sales tax declarations.”
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Dr. Faiz Illahi Memon posted as Executive Director of State Life Insurance
ISLAMABAD: Dr. Faiz Illahi Memon, a senior officer of Inland Revenue Service (IRS) has been posted as Executive Director of State Life Insurance Corporation of Pakistan on deputation basis for three years.
A notification issued on Tuesday, the Federal Board of Revenue (FBR) said that Dr. Faiz Illahi Memon, BS-21 officer of IRS presently posted as Member (FATE) FBR, Islamabad has been placed at the disposal of State Life Insurance Corporation of Pakistan for posting as Executive Director, State Life Insurance Corporation of Pakistan, on deputation basis for a period of three years or till the date of his superannuation, whichever is earlier, on standard terms and conditions of deputation.
Grant of performance allowance of the officer has been discontinued during his deputation period, the FBR added.
According to another notification, Dr. Faiz Illahi Memon has relinquished the charge of the post of Member (FATE) FBR Islamabad with effect from December 22, 2020.
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FBR updates rates of duty, tax on import of vehicles
ISLAMABAD: Federal Board of Revenue (FBR) has issued updated rates of duty and tax for customs clearance of imported vehicle.
The Federal Government of Pakistan has extended various benefits / exemptions to the taxpayers for importing vehicles, according to updated rates up to June 30, 2020.
The details concessions / exemptions are given as under:-
i. S.R.O. 577(I)/2005 Dated 06.06.2005 (Exemption from customs duty, sales tax, withholding tax on import of certain specified Old and used automotive vehicles)
The import of old and used automotive vehicles of Asian makes meant for transport of persons, specified in column (2) of the Table below, falling under PCT heading No. 87.03 of the First Schedule to the Customs Act, 1969 (IV of 1969), is exempted from so much of the customs-duty, sales tax and withholding tax as are in excess of the cumulative amount specified in column (3) thereof,
Sr. No Automotive vehicles of Asian makes meant for transport of persons. Duty and taxes in US$ or equivalent amount in Pak rupees. (1) (2) (3) 1 Up to 800cc US$4800 2 Up to 801-1000cc US$6000 3 From 1001 – 1300cc US$13200 4 From 1301 – 1500cc US$18590 5 From 1501 – 1600cc US$22550 6 From 1601 – 1800cc (Excluding Jeeps) US$27940 It is relevant to mention that the Federal Government has fixed the leviable duty and taxes of automotive vehicles of Asian makes meant for transport of persons as discussed above irrespective of their physical condition. The Customs officers do not have any discretionary power to increase / decrease the leviable duties / taxes, the FBR said.
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FBR’s valuation of immovable properties in Karachi
ISLAMABAD: Following is the table of valuation of immovable properties in Karachi issued by the Federal Board of Revenue (FBR) for the purpose of deduction and collection of withholding tax.
The valuation of immovable properties in Karachi has been issued through SRO 837(I)/2019 dated July 23, 2019 in supersession of notification SRO 120(I)/2019 dated February 01, 2019.
The valuation of immovable properties is applicable from July 24, 2019.
The FBR said that:
(i) Values in the above table are in rupees;
(ii) value is per square yard of the covered area of ground floor plus covered area for the additional floors;
(iii) commercial property built up value is per square yard of the covered area of the ground floor plus covered area of the additional floors, if any;
(iv) built up industrial property value is per square yard of the plot area per square foot;
(v) the value in respect of a residential building consisting of more than one storey shall be increased by 25 percent for each additional storey i.e. value of each storey other than ground floor shall be calculated at 25 percent of the value of the ground floor;
(vi) a property which does not appear to fall in any of the categories shown in the Appendix below shall be deemed to fall in the adjacent lowest category of the Appendix;
(vii) whether the land has been granted for more than one purpose. Viz residential, commercial and industrial, the valuation in such a case shall be the mean/average prescribed rate;
(viii) a flat means the covered residential tenement having separate property unit number / sub-property unit number;
(ix) in residential, multi storey building, additional storey shall be charged if it consists of bed room and bath room;
(x) the rates for basements of built in commercial property in categories I, II, III and IV shall be Rs13,500 per square yard; and
(xi) area-wise categories are in the following appendix
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FBR officers to be deputed at FAFT secretariat
Officers from the Federal Board of Revenue (FBR) will be posted at the Financial Action Task Force (FATF) Secretariat on a deputation basis.
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FBR constitutes refund resolution committee for KPK taxpayers
ISLAMABAD: Federal Board of Revenue (FBR) on Friday constituted a provincial complaint resolution committee for settlement of issues relating of sales tax refund matters for Khyber Pakhtunkhwa (KPK).
The FBR constituted the complaint resolution committee Khyber Pakhtunkhwa comprising following members for settlement of sales tax refund issues for taxpayers falling under the jurisdiction of field formations of Khyber Pakhtunkhwa:
01. Senator Nauman Wazir Khattak: Convenor
02. Chief Commissioner Inland Revenue, Regional Tax Office (RTO), Peshawar: Member
03. Chief Commissioner-IR, RTO, Abbotabad: Member
04. Adeel Rauf, CEO, Khyber Match and AYS Electronics, Peshawar: Member
05. Saad Zahid, Director Rakaposhi Pharmaceuticals: Member
06. Additional Commissioner (HQ), RTO, Peshawar: Member/Secretary
Terms of Reference (TORs) of the complaint resolution committee shall be as under:
i. Review the nature of complaints/issues possible solution and take immediate actions for resolution;
ii. Follow up with concerned field formation till issue is resolved;
iii. Maintain complete record of complaints/issues, mechanism adopted for resolution and post resolution action required, if any; and
iv. share data with the Board on monthly basis including issues received, issues resolved and issues pending for resolution and reasons for pendency.
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Tax amnesty on money invested by builders, developers available till December 31
ISLAMABAD – A tax amnesty providing relief on undeclared money to builders and developers for new housing projects is set to expire on December 31, 2020.
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Cash back to customers: FBR issues list of integrated retailers
ISLAMABAD: Federal Board of Revenue (FBR) has issued updated list of Tier-1 retailers, who have integrated their Point of Sales (POS) with the online system of the tax authorities.
Only a customer of Tier-1 retailer is eligible to get cash back of five percent sales tax out of total amount of sales tax paid at the time of purchase from such retailers.
All tier-1 retailers are required to integrate all their POSs with FBR’s computerized system. ‘Tier-1 retailer’ is defined in section 2(43A) of the Sales Tax Act, 1990, to be a person who falls in any of the following categories:
(a) a retailer operating as a unit of a national or international chain of stores;
(b) a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks;
(c) a retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rupees twelve hundred thousand;
(d) a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers”; and
(e) a retailer, whose shop measures one thousand square feet in area or more.
Following is the list of Tier-1 retailers who integrated their POS with the FBR:
001. RANA TRADING COMPANY (RTC)
002. HI GOLD INTERNATIONAL ENTERPRISES
003. IFFI ELECTRONICS
004. M/S:- TAYYAB SUPER STORE & BUILDERS
005. AFZAL ELECTRONICS
006. AL HAFEEZ ELECTRONICS
007. M/S SEASONS FOODS PRIVATE LIMITED
008. MUNAWAR ASSOCIATES
009. TEAM-A VENTURE (PRIVATE) LIMITED
010. TAFRAL NIAZI TRADERS
011. MS ZUBAIDA ASSOCIATES
012. M/S SUPER ASIA ELECTRONICS,
013. M/S 3-STAR TRADING COMPANY,
014. REWAYAT
015. SEATS
016. TAZ & CO.
017. BIZTECH INTERNATIONAL
018. RETAIL 21
019. WOW SOLUTION (PVT.) LIMITED
020. PAKISTAN ELECTRONICS.
021. AL FALAH SWEETS & BAKERS
022. HAQ’S INTERNATIONAL
023. HOUSE OF CHARIZMA
024. RETAIL CONCEPTS.
025. TILE SELECT (PRIVATE) LIMITED
026. SAVE’N SAVE (PVT) LIMITED
027. SULAFAH
028. WORLD EELCTRONICS
029. KAHF INTERNATIONAL.
030. SAVE MART I-8
031. SAUDA SULF.
032. SHAHEEN CHEMIST
033. KHADIJA ENTERPRISES
034. SPEED (PRIVATE) LIMITED
035. M/S UNITED RETAIL (SMC-PRIVATE) LIMITED
036. H KARIM BUKSH ENTERPRISES
037. M/S PENSY GARMENTS (PVT) LTD
038. M/S PUNJAB CASH AND CARRY BAHRIA TOWN PHASE 4
039. BRAND MERCHANTS
040. JADE E-SERVICES PAKISTAN (PRIVATE) LIMITED
041. THE LEGEND
042. M/S OXFORD KNITTING MILLS (PVT) LTD,
043. NEAMAT KHANA BAKERS AND SWEETS
044. M/S. AM/PM
045. R&Y ENTERPRISES (PRIVATE) LIMITED
046. KIT AND KABOODLE
047. AL MERAJ BAKERS
048. SPRINGS STORES (PVT.) LIMITED
049. JS ENTERPRISES
050. THREADS AND MOTIFS
051. FOCUS
052. AR ASSOCIATES
053. THAL LIMITED
054. COTTON & SILK
055. NEEDLE IMPRESSIONS
056. CITY SMART ELECTRONICS
057. B & B ENTERPRISES
058. MANDAHAR MILLS (PRIVATE)LIMITED
059. M/S SARWAT ASSOCIATES
060. LIGHT SHOES
061. NEAMAT KHANA STORES (PRIVATE) LIMITED
062. BEHBUD CAFE
063. MSM SUPPER STORE
064. M/S MANOLO GELATO.
065. M STORE
066. HM SUPER MARKET
067. SANOOR (PVT.) LIMITED
068. SHALIMAR ELECTRONICS
069. MASTER OFFISYS (PVT) LTD
070. ABDULLAH ENTERPRISES
071. RIZWAN BEYG DESIGN
072. PAKITEX BOARDS (PRIVATE) LIMITED
073. MAF HYPERMARKETS PAKISTAN PVT. LTD.
074. AL BARAKA APPAREL
075. MINISO LIFESTYLE PAKISTAN (SMC-PRIVATE) LIMITED
076. USMAN TRADERS
077. PCC EXPRESS.
078. M/S WALK EAZE
079. EBRAHIM TEXTILE MILLS (PRIVATE) LIMITED
080. MASTER ENTERPRISES (PRIVATE) LIMITED
081. ABUZAR TRADING COMPANY
082. ONELIFE APPAREL (PVT.) LIMITED
083. HMZ SOURCING
084. MEMON BROTHERS
085. M/S. KARACHI TILE MART
086. DAAMAN
087. WALKEAZE EXCLUSIVE
088. NAHEED SUPER MARKET
089. M/S TEEPU TRADERS
090. MCC MALL
091. M/S MARIA B. DESIGNS (PVT) LTD
092. FAZAL DIN’S PHARMA PLUS
093. KHAS HOLDINGS.
094. WALK EAZE BRIDAL
095. AGHA NOOR
096. NOVA CARE (PRIVATE) LIMITED
097. NISAR AHMED & SONS KARYANA DEALER
098. M/S RAHIM MEDICAL AND PROVISIONAL STORE
099. ESAJEES
100. LVM (PVT.) LIMITED
101. SIBGHATALLAH ENTERPRISES
102. N-M ENTERPRISES
103. STYLE & COMFORT
104. PUNJAB CASH & CARRY..
105. AKHLAQ FURNITURE
106. MIAN SHAFIQ BUSINESS INTERNATIONAL
107. M/S BATIK
108. EBCO
109. MUHAMMAD YOUSAF TRADERS
110. CENTURY STEEL (PRIVATE) LIMITED
111. ROCK MARS INDUSTRIES PVT LIMITED
112. M/S. HAWA SOLUTION
113. MEER SWEETS & BAKERS
114. M/S RAZIKI (PVT.) LIMITED
115. EHAD HEALTHCARE
116. PREMIUM VENTURES
117. UMER ENTERPRISES
118. RENAISSANCE
119. THE LEATHER POINT
120. FABRICA
121. FISH COTTAGE
122. JINGGONG CONSTRUCTIONS (SMC-PRIVATE) LIMITED
123. MOHID PHARMACY
124. BEAN CORPORATION
125. AAK TRADING COMPANY
126. BIN RIAZ TRADERS
127. MOHSIN TRADERS
128. BS ENTERPRISES
129. AA FOODS
130. MASSAB ENTERPRISES
131. ABDULLAH ASSOCIATES
132. KHUSHI DIGITAL
133. ILYAS & SONS
134. M/S.M JAFFERJEES
135. M/S BUSINESS CORE.
136. VICTORIA RETAILERS
137. A.MOOSAJEE SONS
138. M/S FAIRDEAL TEXTILES (PVT.) LTD
139. MUSHTAQ SONS
140. MADINA CASH & CARRY (PVT) LIMITED
141. M/S ENGLISH BOOT HOUSE PVT LTD
142. DANIYAL KHAN TRADERS
143. HM ENTERPRISES
144. CROSS CONNECTION RETAIL (PRIVATE) LIMITED
145. WALK EAZE CLASSIC
146. SAMRIN (PVT.) LIMITED
147. G. N. STORE
148. J.A COLLECTIONS
149. ETIHAD ENERGY (PVT) LIMITED
150. PARAMOUNT LACE
151. MAYPOLE (PRIVATE) LIMITED
152. UMER TRADERS
153. COSMETICS TRADING COMPANY (PVT) LTD.,
154. ROLLOVER KIDS COMPANY
155. M/S MIAN GROUP OF CHAKWAL
156. RAJA SAHIB.
157. RESHAM ENTERPRISES
158. INTERNATIONAL INTERIOR (PVT) LIMITED
159. BIG BIRD FOODS (PRIVATE) LIMITED
160. MAISON DE LACE
161. ELAN FACON (SMC-PRIVATE) LIMITED
162. HILAL SILK
163. PUNJAB BAKERY
164. ACME ASSOCIATES
165. NAQSHBANDI STORE
166. MINISO
167. HOME KRAFT STYLE ARTS
168. SAVE MART
169. GOURMET FOOD
170. M/S . ZM
171. HEMANI HERBAL
172. ELECTRONICS MARKETING COMPANY (PVT.) LIMITED
173. THE CLOSET
174. HUSSAIN ENTERPRISES
175. PRIME TEXTILE
176. M/S UC FASHION
177. ENEM PAKISTAN.
178. ARUJ INDUSTRIES LIMITED
179. E-MART
180. LAIBA CORPORATION
181. SHAFIQUE SONS
182. TILE SELECT
183. SNZR ENTERPRISES (PRIVATE) LIMITED
184. COLLECTIBLES
185. BLESS CORPORATION
186. GATEWAY
187. SAVE MART (PVT) LIMITED
188. M/S SUPER ASIA HOUSE,
189. AL RAHIM RETAIL LIMITED
190. M/S ZEIT GEIST
191. ENEM ENTERPRISES.
192. LIFE STYLE COLLECTION
193. M/S INTELLIGENT SOLUTIONS
194. AL RAYAN BROTHERS
195. STYLO JALALPUR JATTAN
196. M/S STYLE WALK
197. PUNJAB CASH AND CARRY ASKARI VII
198. MAKKAH TILES
199. M/S. SAVE MART-BAHRIA TOWN
200. VEGAS COSMETICS
201. FATIMA ENTERPRISES
202. ADIDAS
203. PEOPLECONNECT (PRIVATE) LIMITED
204. AL-SAEED BAKERS
205. LEGENDS BY INZAMAMUL HAQ
206. INTERNATIONAL HOUSE OF LUGGAGE (SMC-PRIVATE) LIMITED
207. M/S ASGHAR ALI (PVT) LTD
208. PUNJAB CASH & CARRY – PARK ROAD
209. BEAUTE COLLECTION
210. M/S TOKYO TRADING INC,
211. MALIK AUTO CORPORATION
212. WALK EAZE CASUAL
213. PLATINUM AFFILIATES
214. CREDO STAR PAKISTAN (PRIVATE) LIMITED
215. AMANAH ESTATE (PRIVATE) LIMITED
216. MINE SAVE MART-TRAMRI
217. THEMES FURNITURE & HOMESTORE
218. M/S K & N’S FOODS (PVT) LTD
219. PUNJAB CASH & CARRY
220. ESAJEE’S
221. AL JAHAN
222. READYGO (PVT.) LIMITED
223. NOOR-E-YOUSAF FOODS (PRIVATE) LIMITED
224. M/S FAISHON VILLAZ
225. UNIFY SOLUTIONS
226. MAKKAH MARBLES
227. UNBEATABLE
228. SERVAID PHARMACY (PVT.) LTD
229. FDPP CONSUMER
230. TEE-EMM (PRIVATE) LIMITED
231. WARDA DESIGNER COLLECTION (PRIVATE) LIMITED
232. SHABBIR TILES & CERAMICS LIMITED
233. BED & BLANKET (PRIVATE) LIMITED
234. DAR CERAMICS TRADING COMPANY
235. M/S SANAULLA CORPORATION (PRIVATE) LIMITED
236. SONICA ELECTRONICS
237. FRENCH GALLERIA
238. M/S DEEPAK PARWANI
239. BRANDS JUST PRET
240. SHOE PLANET (PRIVATE) LIMITED
241. PUNJAB CASH & CARRY BHARRA KAHU
242. RAFUM INDUSTRIES (PVT.) LIMITED
243. M/S BAJWA CO. (PVT) LTD.
244. HAMZA FOODS (PVT.) LIMITED
245. SHAHZAD ZARI HOUSE
246. GHOURI’S DEPARTMENT STORE
247. VANGUARD TEXTILES (PRIVATE) LIMITED
248. M/S HILAL SILK PALACE
249. SHAHEEN CHEMISTS
250. AL HAFIZ ENTERPRISER
251. PARIS SUPER MART
252. AL-MAHMUD ELECTRONICS
253. METRO SHOES.
254. MAFCO (PRIVATE) LIMITED
255. INTERNATIONAL ENGINEERING CO.
256. METRO PAKISTAN (PRIVATE) LIMITED
257. NAEEM ELECTRONICS
258. CHEVRON PAKISTAN LUBRICANTS PRIVATE LIMITED
259. AKRAM & SONS
260. URGE PRET (PRIVATE) LIMITED
261. M/S CIZANO ENTERPRISES
262. RANGE ENTERPRISES
263. IBRAHIM ELECTRONIC
264. MOHSAN TRADERS
265. AMI’S PAN SHOP COLD DRINK STORE
266. AL-NAFEH TRADING COMPANY
267. ATA BAKERY SOLUTIONS (PVT.) LIMITED
268. SOURCECO (PRIVATE) LIMITED
269. BRAGGS KIDS
270. M/S G.B. TRADING COMPANY
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