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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.

  • FBR publishes valuation rulings to facilitate trade

    FBR publishes valuation rulings to facilitate trade

    KARACHI: Federal Board of Revenue (FBR) on Thursday published customs valuations on its official portal to facilitate trade and for ease of doing business.

    A day earlier FBR Chairman directed the authorities to ensure availability of valuation rulings in order to trade facilitation and ease of doing business.

    The FBR published following valuation rulings at its website:

    1429/2019: Determination of Customs Values of Frequency Inverters under Pct Heading (8504.4090) under Section 25-A of the Customs Act, 1969 11/26/2019

    1430/2019: Determination of Customs Values of Skimmed Milk Powder & Instant Milk Powder under Section 25-A of the Customs Act, 1969 11/26/2019

    1427/2019: Determination of Customs Values of Base Cap for Bulbs PCT (8539.9020) under Section 25-A of the Customs Act, 1969 11/19/2019

    1428/2019: Determination of Customs Values of Uncoated Offset Paper for Writing, Printing and Photocopy under Section 25-A of the Customs Act, 1969 11/19/2019

    1426/2019: Determination of Customs Values of LED Decoration Strip Lights/Christmas/Rice/Festival/Madni/Larris Lights PCT (9405.3000) under Section 25-A of the Customs Act, 1969 11/8/2019

    1409/2019: Determination of Customs Values of Latex Rubber Threads under Section 25-A of the Customs Act, 1969 11/8/2019

    1425/2019: Determination of Customs Values of Printed Circuit Board PCT (8534.0000) under Section 25-A of the Customs Act, 1969 11/6/2019

    1424/2019: Determination of Customs Values of Tractors Parts under Section 25-A of the Customs Act, 1969 11/5/2019

    1420/2019: Determination of Customs Values of Hair Brushes/Cleaning/Washing/Sweeping Dusting and Similar kind of Brushes and Feeder Brushes under Section 25-A of the Customs Act, 1969 11/4/2019

    1421/2019: Determination of Customs Values of Replacement Wheel Rim (Alloy/Other than Alloy) under Section 25-A of the Customs Act, 1969 11/2/2019

    1422/2019: Determination of Customs Values of Motor Cycle Parts under Section 25-A of the Customs Act, 1969 11/2/2019

    1423/2019: Determination of Customs Values of Wall Papers under Section 25-A of the Customs Act, 1969 11/2/2019

    1407/2019: Determination of Customs Values of Stationer Items under Section 25-A of the Customs Act, 1969 11/2/2019

    1417/2019: Determination of Customs Values of Waist Belts (Artificial Leather Low-eng Brands), under Section 25-A of the Customs Act, 1969 11/2/2019

    1418/2019: Determination of Customs Values of Circuit Breakers PCT (8526.2010, 8536.2090, 8536.9090) under Section 25-A of the Customs Act, 1969 11/2/2019

    1419/2019: Determination of Customs Values of Hot & Cold Water Dispenser and Parts under Section 25-A of the Customs Act, 1969 11/2/2019

    1408/2019: Determination of Customs Values of Ball, Taper,Needle,Roller,Spherical,Cylindrical Bearings PCT (8482.1000, 8482.2000, 8482.3000 8482.4000, 8482.5000, 8482.6000, 8482.7000, 8482.8000) and Parts/Components of Bearings PCT (8482.9100, 8482.9910, 8482.9990) under Section 25-A of the Customs Act, 1969 11/1/2019

    1410/2019: Determination of Customs Values of Toiletries/Face/Talcum Powder,Face and Skin Creams/Lotions, Tooth Paste, After Shave, Shaving Cream/Gel/Foam, Soap in ot her Forms and Facial Wash under Section 25-A of the Customs Act, 1969 11/1/2019

    1411/2019: Determination of Customs Values of Hair Care Products/Shampoos/Conditionsers and Hair Spray/Gel/Wax/Cream/Colour/Oil/Coat/Aqua/Hydrogen Peroxide Liquid/Develor/Accelerator under Section 25-A of the Customs Act, 1969 11/1/2019

    1412/2019: Determination of Customs Values of PVC Trunking Duct Patti under Section 25-A of the Customs Act, 1969 11/1/2019

    1413/2019: Determination of Customs Values of Used Photocopier Machine under Section 25-A of the Customs Act, 1969 11/1/2019

    1414/2019: Determination of Customs Values of File Covers, File Folder, Pouches and Envelopes made of plastic under Section 25-A of the Customs Act, 1969 11/1/2019

    1415/2019: Determination of Customs Values of Aluminium Radiators under Section 25-A of the Customs Act, 1969 11/1/2019

    1416/2019: Determination of Customs Values of Iron Pad Locks PCT (8301.1000) under Section 25-A of the Customs Act, 1969 11/1/2019

    1406/2019: Determination of Customs Values of Medium Density Fiber (MDF) Board under Section 25-A of the Customs Act, 1969 11/1/2019

    1405/2019: Determination of Customs Values of Low-End Brands Shoes, Slippers, Sandals,Chappals and Joggers under Section 25-A of the Customs Act, 1969 10/31/2019

    1400/2019: Determination of Customs Values of Engine Parts (Replacement Auto Parts) under Section 25-A of the Customs Act, 1969 10/30/2019

    1401/2019: Determination of Customs Values of Cam Shaft, Crank Shaft, Spark Plugs, Lamps Light Lenses, Sealed Beam and Rubber Parts (Replacement Auto Parts) under Section 25-A of the Customs Act, 1969 10/30/2019

    1402/2019: Determination of Customs Values of Water Pumps, Oil Pumps, Fuel Pumps, Oil Filers, Fuel Filters and Air Filters (Replacement Auto Parts) under Section 25-A of the Customs Act, 1969 10/30/2019

    1403/2019: Determination of Customs Values of Transmission Group, Brake Assembly, Steering & Suspension and Body Parts Group (Replacement Auto Parts) under Section 25-A of the Customs Act, 1969 10/30/2019

    1404/2019: Determination of Customs Values of Colour Cosmetics under Section 25-A of the Customs Act, 1969 10/30/2019

    1397/2019: Determination of Customs Values of Children Garments (Baby/Baba) Garments of Low End Brands of China Vietnam,Indonesia, Thailand Malaysia, UAE,sri Lanka & Other Origins under Section 25-A of the Customs Act, 1969 10/28/2019

    1398/2019: Determination of Customs Values of Children Garments of Low End Brands of China,Indonesia,Malaysia,UAE,Bangladesh,sri Lanka,Thailand,Vietnam & Other Origins under Section 25-A of the Customs Act, 1969 10/28/2019

    1395/2019: Determination of Customs Values of Mobile Phone LCD Screens (HS Code 8517.7000) under Section 25-A of the Customs Act, 1969 10/25/2019

    1396/2019: Determination of Customs Values of White Oil, under Section 25-A of the Customs Act, 1969 10/25/2019

    1394/2019: Determination of Customs Values of Non-carbon releasing paper, Art Card/Coated Board/Paper and Light Weight Coated Papers under Section 25-A of the Customs Act, 1969 10/17/2019

    1393/2019: Determination of Customs Values of Chandeliers,Pendants & Others Hanging Lights and Parts Thereof under Section 25-A of the Customs Act, 1969 10/16/2019

    1392/2019: Determination of Customs Values of (1) Perfumes (2) Eau De Toilet Perfumes (3) Eau De Toilt (4) Eau De Cologne (5) Body Spray (6) Personal Deodorants (7) Roll-on (8) Anti-Perspirant (9) Body Deo (10) Deo Stick under Section 25-A of the Customs Act, 1969 10/15/2019

    1391/2019: Determination of Customs Values of Aerosol Spray Paints under section 25-A of the Customs Act, 1969 10/3/2019

    1390/2019: Determination of Customs Values of Ginger and Garlic under section 25-A of the Customs Act, 1969 9/24/2019

    1388/2019: Determination of Customs Values of Thermal Paper/Fax Machine Paper in Roll under section 25-A of the Customs Act, 1969 9/5/2019

    1387/2019: Determination of Customs Values of Polyester Filament Yarn under section 25-A of the Customs Act, 1969 9/3/2019

    1386/2019: Determination of Customs Value of Ball Bearings and Taper Bearings under Section 25-A of the Customs Act, 1969 7/25/2019

    1385/2019: Determination of Customs Values of Printed Polyester Microfiber Fabric for Bed Sheets under Section 25-A of the Customs Act, 169 7/18/2019

    1384/2019: Determination of Customs Values of Non-Dairy Topping/Whipping Cream Under Section 25-A of the Customs Act, 1969 7/17/2019

    1382/2019: Determination of Customs Values of PVC Electric Insulation Tape Under Section 25-A of the Customs Act, 1969 7/15/2019

    1383/2019: Determination of Customs Values of Water Based Acrylic Type Self Adhesive Tape (BOPP/OPP) and Hot Melt Rubber Based Self Adhesive Tape in Jumbo/Log Rolls or in Retail Packing Under Section 25-A of the Customs Act, 1969 7/15/2019

    1381/2019: Determination of Customs Values of Aseptic Packaging Material for Liquid Food/Beverages Under Section 25-A of the Customs Act, 1969 7/12/2019

    1380/2019: Determination of Customs Values of Aerosoft & Similar Brands of Footwear of Thailand Origin Under Section 25-A of the Customs Act, 1969 7/9/2019

    1378/2019: Determination of Customs Value of Three wheelers Cargo Loaders in CKD/SKD conditions and Parts/Components thereof under Section 25-A of the Customs Act, 1969 6/27/2019

    1377/2019: Determination of Customs Value of Refrigeration Gases (in Retail Packing and ISO Tanks/Drums) under Section 25-A of the Customs Act, 1969 6/12/2019

    1376/2019: Determination of Customs Value of Artificial Imitation Jewellery under Section 25-A of the Customs Act, 1969 5/30/2019

    1375/2019: Determination of Customs Value of Food Supplements/Multivitamis/Mineral Supplements and Whey Protein under Section 25-A of the Customs Act, 1969 5/24/2019

    1373/2019: Determination of Customs Value of Branded Milk (Lacnor, Almariai, Soyafresh, etc.) under Section 25-A of the Customs Act, 1969 5/15/2019

    1372/2019: Determination of Customs Value of Aluminum Beverage Cans under Section 25-A of the Customs Act, 1969 5/14/2019

    1371/2019: Determination of Customs Value of Hydrogen Peroxide 50% under Section 25-A of the Customs Act, 1969 5/9/2019

    1369/2019: Determination of Customs Value of Toner Powder Black/Coloured in Bulkfor Photocopiers and Printers under Section 25-A of the Customs Act, 1969 5/6/2019

    1370/2019: Determination of Customs Value of Butter (Derived From Milk/Dairy) under Section 25-A of the Customs Act, 1969 5/6/2019

    1366/2019: Determination of Customs Value of Sauces / Salad Dressing / Mayonnaise / Mustard and Tomato Ketchup under Section 25-A of the Customs Act, 1969 4/30/2019

    1367/2019: Determination of Customs Value of Formic Acid under Section 25-A of the Customs Act, 1969 4/30/2019

    1368/2019: Determination of Customs Value of Dry Coconut/Dry Copra under Section 25-A of the Customs Act, 1969 4/30/2019

    The Valuation Rulings can be downloaded here.

  • FBR may extend return filing date further to facilitate taxpayers

    FBR may extend return filing date further to facilitate taxpayers

    ISLAMABAD: Federal Board of Revenue (FBR) may further extend the last date for filing income tax returns for tax year 2019 beyond November 30, 2019 as large number of filing is still pending.

    The last date for filing income tax returns is expiring on November 30, 2019.

    The actual last date for filing income tax returns was September 30, 2019. This cutoff date was for return filing including salaried persons, business individuals, Association of Persons (AOPs) and corporate entities falling under special tax year.

    However, the FBR granted first extension from September 30 to October 31, 2019. Further, the next extension was granted up to November 30, 2019.

     

    The income tax return filing for tax year 2019 has been recorded at 1.6 million by November 25, 2019. Whereas the number of income tax returns was increased to record 2.7 million for tax year 2018.

    Therefore, it is estimated that a large number may not file their returns by due date.

    The Pakistan Tax Bar Association (PTBA), the apex tax bar of the country, recently through a letter urged the FBR that the date of filing income tax returns of individuals, salaried individuals, Association of Persons (AOP) for the tax year 2019 should be extended up to December 31, 2019 in order to facilitate the genuine taxpayers in the country, who are regularly contributing in the national exchequer as their moral and legal obligation.

    The tax bar previously through different communications on September 27, 2019 and October 28, 2019 already advised the FBR to extend the date for filing Tax Year 2019 returns up to December 31, 2019.

    The FBR chairman has been informed that the draft return Form 2019 for individuals, salaried individuals and AOPs was uploaded on August 23, 2019 through SRO 951 and final return 2019 was uploaded on IRIS on September 02, 2019 through SRO 979 of 2019 which shows laps of statutory period of two months and all burden shifts on FBR.

    The manual return of income form for tax year 2019 was issued on September 27, 2019 FBR through SRO 1160 of 2019, so the small volume taxpayers could file their returns of income for the year 2019 within the stipulated time.

    Furthermore, as per law and statutory time period for filing of income tax return is 90 days under Section 118 of the Income Tax Ordinance, 2001 read with rule 34 of the Income Tax Rules, 2002.

     

    The PTBA said that the date for filing income tax returns was extended up to August 09, 2019 for tax year 2018. This shows the FBR allowed 11 months for the filing for last year returns and for current year it is allowing only two months, which is injustice with the bar members and taxpayers as well.

    The tax bar also pointed out towards the political uncertainty due to sit-in at Islamabad, which was remained continue from start of November 2019 to mid of this month.

  • Cash gifts received without banking channel chargeable to tax

    Cash gifts received without banking channel chargeable to tax

    ISLAMABAD: Any cash gift received by a person other than banking channel will be treated as chargeable to tax, sources in Federal Board of Revenue (FBR) said on Thursday.

    The sources said that in the past people were taking advantage of incentives granted on gifts and concealed their income to evade taxes.

    However, the change in the law through last budget those people will no more dodge the tax authorities of claiming gift from their relatives and evade taxes.

    The FBR had conducted an analysis of income tax returns filed in previous years, which showed that huge amount of non recurring receipts from un-related persons are transferred in the garb of gifts to avoid incidence of taxation.

    The sources said that in order to discourage this practice of undisclosed receipts, Section 39 of Income Tax Ordinance, 2001 had been amended through Finance Act, 2019.

    The amendment enabled the tax authorities to include any amount or fair market value of any property received by a person without consideration or received as a gift in income under the head ‘income from other sources.’

    However, gift received from grandparents, parents, spouse, brother, sister, son or a daughter shall not be included in such income.

    The new income provision is subject to sub-section 3 of Section 39 which states that an amount received by a person otherwise than by a cross cheque drawn on a bank or through a banking channel from a person holding a National Tax Number (NTN) shall be treated as income chargeable to tax under the head ‘income from other sources’.

    This means that the gift received by a person is chargeable to tax if gift is not received from grandparents, parents, spouse, brother, sister, son or a daughter of the recipient.

    However, even if cash gift is received from the relations mentioned above but the same has not be received through cross cheque or banking channel, as the case may be, the amount of gift will still be added in income chargeable to tax under the head, income from other sources.

  • FBR decides to publish customs valuation rulings

    FBR decides to publish customs valuation rulings

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to publish all prevailing valuation rulings to its official website in order to make customs clearance transparent and ease of doing business.

    The FBR in a statement on Thursday said that the chairman Syed Shabbar Zaidi, had issued special instructions to publish all Customs Valuation Rulings on the Website of FBR so that Rulings are easily accessible to the general public.

    The Instructions have been issued to further promote transparency and ease of doing business. The Chairman has requested the business community to assist FBR in identifying cases of under-valuation so that remedial action should be taken.

  • CNIC condition to document transactions above Rs50,000: FBR chairman

    CNIC condition to document transactions above Rs50,000: FBR chairman

    KARACHI: Syed Shabbar Zaidi, Chairman, Federal Board of Revenue (FBR) has said that the condition of Computerized National Identity Card (CNIC) has been made mandatory in order to document transactions above Rs50,000.

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  • Late filers to get ATL status only after surcharge payment

    Late filers to get ATL status only after surcharge payment

    KARACHI: Late filers will only get their names on the Active Taxpayers List (ATL) after payment of penalty or surcharge.

    It has been observed that many taxpayers were filing their income tax returns for tax year after the last date of August 09, 2019 but they could not get their name on the ATL.

    The taxpayers noticed that their returns were filed and shown on the completed task but their names were not appeared on the ATL.

    However, this issued was resolved when they deposited penal amount to the Federal Board of Revenue (FBR).

    Officials at the FBR said that the late filers of Income Tax Return for Tax Year 2018 can pay “Surcharge for ATL” as defined under section 182(A) of Income Tax Ordinance 2001 by clicking on Tax Payment Nature “Misc” head in the PSID.

    “Only after the payment of surcharge will the name of the late filer become part of ATL.”

    In order to make normal payment through electronic mode, the officials said that in the e-Payments tab, a person will access Create Payment and then select Income Tax Annual Return option.

    The resulting selection will lead you to Income Tax e-Payment page. On this page a payment slip (PSID) will be created by:

    Selecting the relevant Tax Year

    Typing the Tax amount due

    Selecting the mode of payment

    Clicking the create button on the bottom of the page Confirm the e-Payment created. This will successfully create the e-Payment slip.

    The e-Payment slip can be deposited in any National Bank (NBP)/State Bank (SBP) branch. Select the nearest city where a taxpayer wants to deposit the payment slip from the drop down list.

    Click the print button to download the PSID on your computer. Deposit the PSID in any of the available branches of the city of your choice.

  • Only return filers allowed to claim income tax refunds

    Only return filers allowed to claim income tax refunds

    KARACHI: Only those taxpayers have been allowed to claim income tax refunds, who filed their income tax returns electronically, officials at Federal Board of Revenue (FBR) said.

    Refund can be only claimed if the person has filed their income tax return electronically.

    A manual Return does not entitle you to a refund, the officials said.

    The refund amount should be clearly reflected in the taxpayers’ income tax returns filed on FBR’s portal i.e. Iris.

    Refund resulting from the income tax return can be claimed by filing a separate application in Iris.

    To check the status of application, the taxpayers can visit relevant Regional Tax Office (RTO).

    The refund can also be claimed later on after submitting the income tax return, but within two years from the date of filling of return (date of assessment) or from the date on which the tax was paid, whichever is later.

    However, persons filing tax return for tax year after the specified due date will not be entitled to refund during the period the person is not included in ATL and income tax authorities will not incur any liability of compensation for delayed refund for the period the person is not appearing in ATL and such period shall not be counted for the purpose of computing additional payment for delayed refund.

  • Properly filled stock statement to ensure refund in 72 hours: FBR

    Properly filled stock statement to ensure refund in 72 hours: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) has said that property filled stock statement will ensure processing of sales tax refunds within 72 hours.

    The FBR said that properly filled Annex-H, which is form to provide details of stock statement, without objections and anomalies of data will ensure processing in 72 hours.

    The FBR said that Annex-H is a stock statement of input goods / services which shows flow of inputs in terms of quantity, value and sales tax involved in opening / closing balances, purchases and consumption in exports and local sales.

    Quantities / values of finished products (exports and local) and output tax on local sales should not be mentioned in Annex-H3-Use Annex H to upload for the month transactions i.e. purchase, import and Consumption only, Opening and Closing are derived /calculated automatically.

    Same is applicable for Excel file uploading otherwise objection of duplicate value will arise.

    The brought forward and carry forward tax amount in the return should match with opening balance and closing balance tax amount in the Annex-H5

    The value of purchases and input tax paid thereon in the return should match with the corresponding figures in columns “purchased / imported during the month” in Annex-H6-Generally, refund amount in column 29 of return is based on following formula:

    Refund claim=Input Tax Consumed in Exports/ Zero Rated(Col 22 of Annex-H)–Net payment against local supplies

    OR

    Refund claim = Input Tax Consumed in Exports/ Zero Rated(Col. 22 of Annex-H)+Input tax consumed in local supplies (Col. 20 of Annex-H)− Accumulated debit from monthly return (Row 17 of return)

    Mark invoice-wise inadmissible input tax for SRO 490 for accuracy in Annex-A of return

    Avoid claiming input tax credit more than once on same GD / invoice (e.g. both in provinces and FBR return)

    Credit brought forward from previous claim will be made available in opening balance in Annex-H.

    Recovery / arrears data will be made available in Annex H Declaration

    Following items relating to toll manufacturing have been added in “Item description” in Annex-H

    a.Sizing

    b.Yarn Dyeing

    c.Yarn Doubling

    d.Weaving

    e.Knitting

    f.Processing (Bleaching, Dyeing and Printing)

    g.Stitching

    h.Embroidery

  • Tax return filing not mandatory for widow, orphan, disabled persons

    Tax return filing not mandatory for widow, orphan, disabled persons

    KARACHI: Filing of income tax return is not mandatory for persons including widow, orphan and disabled persons for sole reasons mentioned in the Income Tax Ordinance, 2001.

    Officials of Federal Board of Revenue (FBR) on Tuesday said that the Section 115 of Income Tax Ordinance, 2001 categorized persons, who are not required to file income tax returns.

    It said that the following persons shall not be required to furnish a return of income for a tax year solely by reason of sub-clause (iii), (iv),(v) and (vi) of clause (b) of sub-section (1) of section 114 –

    (a) A widow;

    (b) an orphan below the age of twenty-five years;

    (c) a disabled person; or

    (d) in the case of ownership of immovable property, a non-resident person.

    Sub-clause (iii), (iv),(v) and (vi) of clause (b) of sub-section (1) of section 114 are as under:

    (iii) owns immovable property with a land area of five hundred square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;

    (iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;

    (v) owns a flat having covered area of two thousand square feet or more located in a rating area;

    (vi) owns a motor vehicle having engine capacity above 1000 CC

    The officials said that any person who is not obliged to furnish a return for a tax year because all the person’s income is subject to final taxation under sections 5, 6, 7, 148, 151 and 152, sub-section (3) of section 153, sections 154, 156 and 156A, sub-section (3) of section 233 or sub-section (3) of section 234A shall furnish to the Commissioner a statement showing such particulars relating to the person’s income for the tax year in such form and verified in such manner as may be prescribed.

    (4A) Any person who, having furnished a statement, discovers any omission or wrong statement therein, he may, without prejudice to any other liability which he may incur under this Ordinance, furnish a revised statement for that tax year, at any time within five years from the end of the financial year in which the original statement was furnished.

    (5) Subject to sub-section (6), the Commissioner may, by notice in writing, require any person who, in his opinion, is required to file a prescribed statement under this section for a tax year but who has failed to do so, to furnish a prescribed statement for that year within thirty days from the date of service of such notice or such longer period as may be specified in such notice or as he may, allow.

    (6) A notice under sub-section (5) may be issued in respect of one or more of the last five completed tax years.

  • Income tax return filing hits new record high of 2.7 million

    Income tax return filing hits new record high of 2.7 million

    ISLAMABAD: Measures to increase tax burden on non-compliant persons have resulted into record income tax return filing of 2.7 million for tax year 2018.

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