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.

  • Sales tax registration made mandatory for buyers of ginned cotton

    Sales tax registration made mandatory for buyers of ginned cotton

    ISLAMABAD: Federal Board of Revenue (FBR) has made sales tax registration mandatory for persons buying ginned cotton.

    The FBR issued SRO 1087(I)/2019 and said that the person receiving ginned cotton shall pay sales tax and shall discharged the liability in the following manner:

    (a) the recipient of the supply of ginned cotton shall be duly registered under the Sales Tax Act, 1990, and the ginner shall not make any supply of ginned cotton to any person who is not so registered;

    (b) the ginner shall issue a tax invoice on the supply of taxable goods under Section 23 of the Sales Tax Act, 1990 indicating the value of taxable supply and the amount of tax due on such supply, along with other particulars as prescribed therein. The ginner shall also file the monthly return in accordance with the rules prescribed under the Act;

    (c) the tax invoice shall be issued of the date on which the ginned cotton was dispatched;

    (d) the recipient of ginned cotton shall deposit the tax due thereon under a payment challan indicating the name and registration number of supplier, along with the return for tax period in which invoice is issued for the relevant supply;

    (e) if the recipient fails to deposit sales tax payable on ginned cotton purchased by him by the due date for the relevant tax period, besides any other action which may be taken against him under the said Act, he shall not be entitled to claim adjustment or refund of input tax in respect of such purchase unless he pays the amount of additional tax or penalties chargeable on such late deposit under Section 33 and 34 of the said Act;

    (f) in case the ginner fails to declare the supply of ginned cotton in his return and same is detected during the course of an audit or otherwise, the amount due on such supply shall be recoverable from the ginner in accordance with the provisions of the said Act and the rules made thereunder;

    (g) the cases involving non-payment or short-payment of sales tax by a ginner or a recipient on supplies of ginned cotton made under the provisions of this notification shall be adjudicated by the officer having jurisdiction in the area where the contravention is made; and

    (h) in case a ginner deposits the tax due on the supply of ginned cotton, the same shall absolve the recipient from liability to pay tax on such supply under this notification.

  • FBR issues 60,000 notices to Faisalabad industrial, commercial electricity consumers

    FBR issues 60,000 notices to Faisalabad industrial, commercial electricity consumers

    ISLAMABAD: Federal Board of Revenue (FBR) has issued 60,000 notices to commercial and industrial electricity consumers for mandatory registration and filing of income tax returns.

    Syed Shabbar Zaidi in a tweet on Wednesday said that over 60,000 notices to non-registered / non-compliant persons were being jointly sent by FBR and Faisalabad Electric Supply Company (FESCO) to industrial and commercial consumers in Faisalabad.

    “Strict actions will be taken against delinquents. Such action will be replicated around the country.”

    Under the Income Tax Ordinance 2001, an industrial / commercial consumer of gas or electricity paying above Rs500,000 for single connection is mandatorily required to file income tax returns.

    Recently, the chairman wrote letters to power and gas utilities for refusing new applications for commercial / industrial connections until the individuals appear on the active taxpayers list.

  • FBR sets up information booth at ITCN Asia

    FBR sets up information booth at ITCN Asia

    KARACHI: Federal Board of Revenue (FBR) has setup an informative booth for ease of doing business at ITCN Asia Expo 2019 to be continued September 17-19 at Karachi Expo Center.

    The setting up of the informative booth is aimed at enlightening the industry players, youth and the other stakeholders about the role FBR is playing in Ease of Doing Business in Pakistan and other facilitative measures being taken for the taxpayers, traders and investors.

    The team of FBR is led by Mustafa Sajjad Hassan, Member Facilitation & Taxpayers Education (FATE) who is assisted by Ms. Tehmina Aamer, Chief (FATE) and Field officials of RTO, Karachi.

    The event has provided an opportunity to not only comprehend the challenges and concerns faced by industrialists and business community but also to enlighten them about the new initiatives taken by FBR to reduce the hurdles of doing business.

    Through this platform, FBR aims to create awareness about the simplification of filing process, alternative modes of tax payment with ease, automation of sales tax registration and sales tax refund system besides other facilitative measure taken by FBR.

    The setting up of information booth will also help to get valuable feedback of industry leaders, businesses and most importantly the youth that is shaping the future narrative transforming business and industry outlook in the region.

  • Salary persons can file returns in easy steps by using mobile app

    Salary persons can file returns in easy steps by using mobile app

    ISLAMABAD: In a significant step towards enhancing accessibility and ease of tax compliance, the Federal Board of Revenue (FBR) has officially launched a mobile application tailored for salaried individuals to file their income tax returns for the tax year 2019.

    (more…)
  • FBR applies standard measurement units for customs clearance

    FBR applies standard measurement units for customs clearance

    ISLAMABAD: Federal Board of Revenue (FBR) has applied standard units of measurements (UoM) for customs clearance of consignments.

    The FBR issued Customs General Order (CGO) No. 15/ 2019 on Monday and directed all field formations of Customs to adopt standard units of quantity/measurement.

    The FBR said that the units of measurement have been revisited in terms of recommendations of the World Customs Organization (WCO) and international / national trading practices to maintain uniformity; improve collection, comparison and analysis of trade statistics and facilitate trade, based on the Harmonized System.

    The standard units of quantity were previously notified by the FBR on August 06, 2012. Due to adoption of HS-2017 version Pakistan Customs Tariff (PCT) codes have been created. Accordingly an updated CGO has been prepared to accommodate these changes.

    The standard units of quantity are:

    Weight – kilograms (kg), carat (carat)

    Length – meters (m)

    Area – square meters (m2)

    Volume – cubic meters (m3), liters (l)

    Electric power – 1,000 kilowatts hours (1,000 kWh)

    Numbers – pieces/items (u), pairs (2u), dozen (12), thousands of pieces / items (1,000 u), packs (u (jeu/pack)).

    The FBR applied these units of measurements on 7,354 PCT codes.

  • FBR bars tax officials from entering taxpayers premises for search, audit

    FBR bars tax officials from entering taxpayers premises for search, audit

    ISLAMABAD: Federal Board of Revenue (FBR) has barred officers of Inland Revenue from entering premises of taxpayers for search and audit purposes.

    The FBR issued a notification on Monday and restricted IR officers for invoking Section 175(1) of Income Tax Ordinance, 2001.

    The FBR received numerous complaints of taxpayers that tax officials were abusing powers available under this section.

    The IR officers were allowed under this section to enter and search premises.—

    (1) In order to enforce any provision of this Ordinance (including for the purpose of making an audit of a taxpayer or a survey of persons liable to tax), the Commissioner or any officer authorised in writing by the Commissioner for the purposes of this section –

    (a) shall, at all times and without prior notice, have full and free access to any premises, place, accounts, documents or computer;

    (b) may stamp, or make an extract or copy of any accounts, documents or computer-stored information to which access is obtained under clause (a);

    (c) may impound any accounts or documents and retain them for so long as may be necessary for examination or for the purposes of prosecution;

    (d) may, where a hard copy or computer disk of information stored on a computer is not made available, impound and retain the computer for as long as is necessary to copy the information
    required; and

    (e) may make an inventory of any articles found in any premises or place to which access is obtained under clause (a).

    The FBR said that in exceptional cases the section may be invoked but with the prior permission of the chief commissioner of Inland Revenue.

  • Traders criticizes FBR for early implementation of CNIC condition

    Traders criticizes FBR for early implementation of CNIC condition

    KARACHI: Traders have strongly criticized Federal Board of Revenue (FBR) for applying condition of Computerized National Identity Card (CNIC) for sales tax invoices much before its promised date of September 30, 2019.

    Javed Shams, President, Anjuman e Tajiran, Sindh, Karachi Division urged the FBR to allow sales tax transactions without the condition of CNIC till September 30, 2019.

    He said that in a meeting on August 07, 2019 with FBR chairman Shabbar Zaidi it was agreed that retailers would not asked for CNIC from its customers. Besides it was also agreed that company and distributors would also not demand for CNIC from their customers.

    Javed Shams further said that it was agreed that the transactions would not be documented till FBR and traders associations were not reached on an agreement. Instead the FBR portal is not accepting sales tax return for the month of August 2019 without CNIC.

    He urged the FBR to withdraw the condition till September 30, 2019 and allow taxpayers to file their returns for the month of August without condition of CNIC.

    He said that such steps of the FBR would not augur well for the economy.

  • FBR to retest shorthand, typing speed of officials; gives 60 days deadline

    FBR to retest shorthand, typing speed of officials; gives 60 days deadline

    ISLAMABAD: Federal Board of Revenue (FBR) has observed that lethargy of officials working as assistant private secretaries and steno typists is causing problems in speedy and efficient disposal of work.

    The FBR said that during a drive to check the efficiency of Assistant Private Secretaries (BS-16) and Steno typists (BS-14), working in Inland Revenue field formation it had been observed that shorthand and typing speed had declined far below the prescribed standard threshold.

    “This lethargy on part of the officials is causing problems in speedy and efficient disposal of official work,” the FBR said.

    An official memorandum sent to all the heads of IR offices, said that in terms of recruitment rules for the said posts following criteria was laid down for shorthand and typing:

    Assistant private secretary – minimum shorthand speed 100 words per minute (WPM) and minimum typing speed 50 WPM.

    Steno typists – minimum shorthand speed 80 WPM and minimum typing speed 40 WPM.

    Considering the present situation, the FBR has decided that all assistant private secretaries / steno typists Inland Revenue field formations will undergo the shorthand and typing speed test to be conducted by all the heads of Inland Revenue field formation after 60 days from issuance of this memo i.e. August 30, 2019.

    The FBR further said that the results of the test would be shared with the board which would be incorporated in the personal dossiers of the respective officials and would also have a bearing on the performance allowance.

  • FBR allows refund, adjustment under abolished sales tax special procedure

    FBR allows refund, adjustment under abolished sales tax special procedure

    ISLAMABAD: Federal Board of Revenue (FBR) has allowed refund and adjustment that are stuck up as sales tax special procedure was abolished through Finance Act, 2019.

    The FBR on Friday issued Sales Tax General Order (STGO) No. 105 for allowing adjustment / refund of sales tax paid under special procedures.

    The FBR said that through the budgetary measures for the financial year 2019-20, special procedures and other treatments for various sectors have been abolished and instead standard sales tax regime with right to input tax adjustment have been prescribed with effect from 1st July, 2019.

    It has been pointed out that the goods on which sales tax has been paid under special procedures prior to 1st July, 2019, were in stock on 30th June, 2019, and the same would be supplied after the said date, thus attracting sales tax under standard regime at applicable rate, subjecting the goods to double / increased incidence of tax.

    It has been further pointed out that under special procedures, input tax adjustment was not allowed. However, if such input goods, or finished goods made from these inputs, are supplied after 30th June, 2019, the right of input tax is created. The taxpayers have requested to provide a mechanism to avail such adjustment or for refund of tax paid in excess.

    Acknowledging the position as highlighted, the Board intends to resolve the issue as under:

    Steel Sector: Melters:

    Adjustment against GDs of re-meltable scrap imported prior to 1st July, 2019, which remained in stocks or the finished goods made therefrom remained in stock on 30th June, 2019, shall be made available to the extent of that consumed in supplies made in July and August 2019, provided no adjustment of tax paid on such GDs was made against sales tax on electricity bill as was provided under the Sales Tax Special Procedures Rules, 2007.

    However, such adjustment shall be made available, on case-to-case basis, if the Commissioner concerned verifies the stock position on 30th June, 2019, as declared online by such steel melters.

    The verification may be done by working back from current physical stocks and production and sales of intervening period after ensuring that the declared production is not below one metric ton per 800 units of electricity consumed during the intervening period. The adjustment to be allowed shall not exceed the stock as so verified or the stock as declared online, whichever is lower.

    Oil and Ghee Mills:

    Adjustment shall be available in respect of 16 percent FED against imports made in June, 2019, as available in stock on 30th June, 2019, in the same form or in the form of finished goods, as consumed in sales made during July and August, 2019. Adjustment shall be made to the extent of sales actually made in each month.

    Refund of Rs. 1 / kg paid on inputs:

    If inputs on which Rs. 1 / kg FED was paid on import or local purchase and the same, or the finished goods made therefrom, remained in stock on 30th June, 2019, such Rs. 1 / kg becomes payment in excess if such finished goods are supplied after 30th June, 2019, with payment of due tax / FED at 17 percent. The refund of such Rs. 1 / kg, so paid in excess, may be allowed by the field formations, under section 66, after due scrutiny and as per law, after ensuring that the finished goods produced from such inputs have been supplied and FED payable at 17 percent has been duly accounted for in the relevant return.

    Extra Tax Items as specified in Chapter XI of rescinded Sales Tax Special Procedures Rules, 2007:

    Adjustment shall be available against invoices showing 17 percent input tax on purchases of specified goods during June, 2019, which were in stock on 30th June, 2019, and were sold in July and August 2019. These invoices as declared in June, 2019 return shall be made available for adjustment. Adjustment shall be made to the extent of sales actually made in each month.

    Refund of 2 percent extra tax:

    If purchases of specified goods inputs on which 2 percent extra tax was paid, remained in stock on 30th June, 2019, such 2 percent extra tax becomes payment in excess if such finished goods are supplied after 30th June, 2019, with payment of due sales tax at 17 percent. The refund of extra tax, so paid in excess, may be allowed by the field formations, under section 66, after due scrutiny and as per law, after ensuring that the goods involved supplied and sales tax at 17 percent has been duly accounted for in the relevant return.

    General Guidelines:

    There shall be only one adjustment of input tax against a particular GD or invoice. In case part input tax is adjustable against a particular GD or invoice, the inadmissible amount may be reflected in Column 7 of the return. Field formations shall monitor input tax adjustments as provided herein and ensure that the same have been rightfully made.

    The adjustment shall be made against stocks on 30th June, 2019, as declared on FBR’s website. In case of any mis-declaration of such stocks, or adjustments in excess of amount of tax involved in actual stocks shall be recovered under law Adjustment / refund shall only be made in respect of suppliesas already made on payment of tax due.

  • FBR notifies transfers, postings of BS-17-19 customs officers

    FBR notifies transfers, postings of BS-17-19 customs officers

    KARACHI: Federal Board of Revenue (FBR) on Friday announced transfers and postings of Pakistan Customs Service (PCS) officers in BS-17-19 with immediate effect until further orders.

    The FBR notified transfers and postings of following officers:

    01. Muhammad Nayyar Shafiq (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Collector, Model Customs Collectorate (AIIA), Lahore from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    02. Muhammad Irfan Wahid (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Director, Directorate General of Intelligence & Investigation,FBR, Islamabad from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    03. Engr. Habib Ahmad (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Collector, Model Customs Collectorate of Exports, Custom House, Karachi from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    04. Ms. Mehreen Naseem (Pakistan Customs Service/BS-19) has been transferred and posted as Secretary, Federal Board of Revenue (Hq), Islamabad from the post of Additional Director, Directorate of Intelligence & Investigation,FBR, Lahore.

    05. Muhammad Ahsan Khan (Pakistan Customs Service/BS-19) has been transferred and posted as Secretary, Federal Board of Revenue (Hq), Islamabad from the post of Additional Collector, Model Customs Collectorate of Appraisement, Peshawar.

    06. Muhammad Raza (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Collector, Model Customs Collectorate (AIIA), Lahore from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    07. Adnan Iqbal Sawati (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Collector, Model Customs Collectorate of Appraisement, Peshawar from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    08. Haroon Waqar Malik (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Collector, Model Customs Collectorate of Preventive, Karachi from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    09. Rizwan Bashir (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Collector, Model Customs Collectorate of Appraisement (East), Karachi from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    10. Ms. Dr. Kaukab Farooq (Pakistan Customs Service/BS-19) has been transferred and posted as Secretary, Federal Board of Revenue (Hq), Islamabad from the post of Additional Director, Directorate General of Intelligence & Investigation,FBR, Islamabad.

    11. Mushtaq Ali Shahani (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Collector, Model Customs Collectorate of Port Muhammad Bin Qasim, Karachi from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    12. Afzaal Ahmed (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Collector, Model Customs Collectorate of Appraisement (East), Karachi from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    13. Ms. Tahira Javed (Pakistan Customs Service/BS-19) has been transferred and posted as Secretary, Federal Board of Revenue (Hq), Islamabad from the post of Additional Collector, Model Customs Collectorate of Preventive, Lahore.

    14. Asad Ullah Larik (Pakistan Customs Service/BS-19) has been transferred and posted as Secretary, Federal Board of Revenue (Hq), Islamabad from the post of Additional Collector, Collectorate of Customs (Adjudication-II), Karachi.

    15. Ali Raza Turabi (Pakistan Customs Service/BS-18) has been transferred and posted as Second Secretary, Federal Board of Revenue (Hq), Islamabad from the post of Deputy Collector, Model Customs Collectorate of Exports (Port Muhammad Bin Qasim), Karachi.

    16. Moeen Afzal Ali (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Appraisement (East), Karachi from the post of Second Secretary, Federal Board of Revenue (Hq), Islamabad.

    17. Mrs. Saher Yasir (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate of IPR Enforcement (North), Islamabad from the post of Second Secretary, Federal Board of Revenue (Hq), Islamabad.

    18. Ubaidullah (Pakistan Customs Service/BS-17) has been transferred and posted as Deputy Director, (OPS) Directorate of Post Clearance Audit, Islamabad from the post of Deputy Collector, (OPS) Model Customs Collectorate, Peshawar.

    19. Syeda Sadaf Ali Shah (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Appraisement (East), Karachi from the post of Assistant Collector, Model Customs Collectorate, Peshawar.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.