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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.

Date for sales tax payment may not to be extended

ISLAMABAD: Federal Board of Revenue (FBR) has said it will not extend the date for sales tax payment beyond March 31, 2020.

The FBR spokesman said that the date was extended for duty and tax payment in order to facilitate taxpayers amid outbreak of coronavirus and subsequent lockdown.

Through a notification on March 18 the FBR extended the last date for submission of sales tax and federal excise return for the tax period of February 2020.

The FBR extended the date of submission of sales tax and federal excise return up to March 25 for the tax period of February 2020, which was due on March 18, 2020.

The FBR on March 24 issued another circular to further extend the date for submission of sales tax and federal excise returns along with annexures for the tax period of January 2020 and February 2020.

The FBR allowed extension return filing date for January 202 up to April 15, 2020. This return was due on February 18, 2020 and was extended up to February 28, 2020.

For the month of February 2020, the date for payment of sales tax and federal excise duty has been extended up to March 03, 2020 which was due on March 15, 2020.

The submission of sales tax and federal excise return has been further extended up to April 15, 2020, which was due on March 18, 2020 and it was extended up to March 25, 2020.

March 28, 2020
FBR may extend date for Tier-1 retailers POS integration

ISLAMABAD: Federal Board of Revenue (FBR) is likely to extend the last date for big retailers to integrate their point of sales (POSs) with the online system of the tax system owing to ongoing lockdown to prevent spread of coronavirus, sources said on Wednesday.
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March 26, 2020
FBR advises duty, tax payment through alternate delivery channels

KARACHI: Federal Board of Revenue (FBR) has advised taxpayers to pay duty and taxes through alternate delivery channels (ADC) during restricted movement in the wake of coronavirus pandemic.
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March 25, 2020
FBR extends date for filing sales tax returns up to April 15

ISLAMABAD: In response to the ongoing lockdowns across various regions of the country to curb the spread of COVID-19, the Federal Board of Revenue (FBR) has announced an extension for the filing of monthly sales tax returns. This decision aims to alleviate the burden on taxpayers facing difficulties due to the pandemic-induced restrictions.
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March 24, 2020
FBR allows exemption on import of 61 medical, testing equipment to fight against coronavirus

ISLAMABAD: Federal Board of Revenue (FBR) has allowed exemption from duty and taxes on import of medical and testing equipment regarding outbreak of coronavirus.
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March 21, 2020
FBR withdraws sugar valuation for sales tax collection

KARACHI: Federal Board of Revenue (FBR) has withdrawn valuation of sugar for the purpose of sales tax collection in order to ensure clearance at prevalent international rates.

The FBR issued SRO 233(I)/2020 dated March 18, 2020 to amend SRO 812(I)/2016 dated September 02, 2016.

The FBR had fixed valuation at $725 per metric ton through previous notification. However, the prices of the commodity witnessed sharp decline in international market over the time.

Presently, the international sugar prices is being traded at $334.30 per metric tons. The prices fell by 21 percent during March 20, 2020 in international trade.

March 19, 2020
FBR extends date for filing sales tax returns

ISLAMABAD – The Federal Board of Revenue (FBR) has announced an extension in the deadline for filing sales tax and federal excise return for the month of February 2020.
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March 19, 2020
FBR decides online monitoring sale of petroleum products

ISLAMABAD: Federal Board of Revenue (FBR) has decided online monitoring the sale of petroleum products in order to prevent tax evasion.
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March 18, 2020
FBR starts obtaining CNIC information on purchases above Rs50,000

KARACHI: Federal Board of Revenue (FBR) has started obtaining CNIC information of buyers making purchases above Rs50,000 in order to realize sales tax and for broadening of tax base.

Sources in FBR said that sales tax registered persons would provide details of Computerized National Identity Card (CNIC) of buyers making purchases above Rs50,000.
The registered persons will provide the details of CNIC through their monthly sales tax return that is due on March 18, 2020 for the month of February 2020.

The FBR made it mandatory for sales tax registered persons to obtain CNIC details of unregistered buyers. In this regard an amendment was made to Section 23 of Sales Tax Act, 1990 through Finance Act, 2019.

The condition was made mandatory on supplies from August 01, 2019. However, on the objections from stakeholders including small traders and shopkeepers the condition was deferred till January 31, 2020.

The sources said that the sales tax registered persons are required to obtain CNIC details of buyers from February 01, 2020 and provide the same information to the FBR through monthly returns of February 2020, which is due on March 18, 2020.

They said that the condition is not applicable on ordinary customers.

For the purpose of this clause, ordinary consumer means a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing.

The sources said that in case seller was unable to obtain the CNIC information of buyer then in such case the registered person would be responsible.

However, the FBR through Sales Tax General Order No. 106 dated October 04, 2019 issued clarification regarding CNIC condition.

The FBR clarified that the CNIC/NTN of the buyer with respect to taxable supplies to an unregistered person shall be deemed to have been reported in good faith by the suppliers with conditions that the invoice should complies with statutory requirements.

It is also mandatory that payment made by or on behalf of the unregistered purchaser of the amount of the tax invoice, inclusive of sales tax and applicable further tax, is deposited into the supplier’s declared business bank account.

The CNIC provided by the purchaser is found authenticated by the National Data and Registration Authority (NADRA).

The FBR also barred that CNIC/NTN provided was not of the employee of the seller or of his associates.

The sources said that the tax authorities would impose penalty on registered persons on failure to comply with the requirement of obtaining CNIC.

March 15, 2020
FBR allows filing Annexure-H for July – October up to April 15

ISLAMABAD: Federal Board of Revenue (FBR) has allowed taxpayers to submit their stock position for the period July – October 2019 up to April 15, 2020 in order to claim sales tax refunds under newly only verification and issuance system.

In an official memorandum issued on Friday, the FBR condoned the time limit for filing of Annexure – H for the tax period July – October 2019 up to April 15, 2020.

Annexure-H is a statement for providing stock position by taxpayers along with monthly sales tax return.

The FBR from July 01, 2019 introduced expeditious payment of sales tax refunds within 72 hours subject to the true filing of Annexure – H.

Recently, Karachi Tax Bar Association (KTBA) highlighted this issue and urged the tax authorities to resolve for facilitating exporters and manufacturers.

The KTBA pointed out that as per the amendments made in Sales Tax Rules, 2006 vide SRO no. 918(I)/2019 dated August 7, 2019, mechanism for expeditious processing of refund claim has been devised only for manufacturers-cum- exporters.

As per the Rules, refund will be treated as having been filed only after filing of Annexure H of the Sales Tax return, for which deadline of 120 days has been prescribed in the Rules and the same can be extended for a period of 60 days on the basis of approval from the Commissioner.

However, the rules are silent about the mechanism for processing of Sales Tax refunds incase Annexure H has not been filed by manufacturer-cum-exporter for any reason. Considering the legal and legitimate right of the taxpayer to claim adjustment / refund of the input tax, either of the following two option be considered by the FBR for facilitation of exporters:

Allow filing of Annexure H without any time limit [present time limit of 4 months be abolished and taxpayer be allowed to claim refund as and when required] ii. Incase present limit of 4 months cannot be abolished, registered persons be allowed at least to alternatively file refund on annual basis after the end of the tax year.

Apart from the above, Annexure H is only being allowed to be filed to taxpayers who have filed the said Annexure from sales tax returns of July 2019 and onwards. Instead of claiming refund, some taxpayers have reported sales tax carried forward balance in their sales tax returns from July 2019 onwards. In case they now intend to file Annexure H from the current month,

FBR’s online portal does not allow such taxpayers to enter opening balance of inventory / raw materials as the said field in blocked for editing. This limitation should be removed and taxpayers should be allowed to file Annexure H for any specific month, for which they intend to claim refund.

From apparent mechanism being followed by the system, it appears that those taxpayers who have not filed Annexure H for the month of July 2019 will never be allowed to file Annexure H for any subsequent month. This apparent anomaly should be resolved at earliest.

March 13, 2020