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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.

  • Withholding tax rates on purchase, registration of motor vehicle for Tax Year 2019

    Withholding tax rates on purchase, registration of motor vehicle for Tax Year 2019

    KARACHI: Federal Board of Revenue (FBR) has issued updated withholding tax rates on purchase and registration of motor vehicles.

    The withholding tax rates have been updated through Finance Supplementary (Second Amendment) Act, 2019 as on March 09, 2019.
    The withholding tax rate on registration of motor vehicle to be collected by excise and taxation department of provincial government under Sub-Section 1 of Section 231B of Income Tax Ordinance, 2001:
     

    Registration of Motor VehicleFilerNon-Filer
    Up to 850CCRs7,500Rs15,000
    851CC to 1000CCRs15,000Rs37,500
    1001CC to 1300CCRs25,000Rs60,000
    1301CC to 1600CCRs50,000Rs150,000
    1601CC to 1800CCRs75,000Rs225,000
    1801CC to 2000CCRs100,000Rs300,000
    2001CC to 2500CCRs150,000Rs450,000
    2501CC to 3000CCRs200,000Rs600,000
    Above 3000CCRs250,000Rs675,000

     
    Every leasing company or a scheduled bank or a non-banking financial institution or an investment bank or a modaraba or a development finance institution, whether shariah compliant or under conventional mode, at the time of leasing of a motor vehicle to a non-filer, either through ijara or otherwise, shall collect advance tax at the rate of four per cent of the value of the motor vehicle under Sub-Section 1A of Section 231B of Income Tax Ordinance.

    Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of transfer of registration or ownership of a private motor vehicle, at the following rates under Sub-Section 2 Section 231B of Income Tax Ordinance, 2001:
     

    Engine CapacityTax for FilerTax for Non-Filer
    Up to 850CCRs 0Rs5,000
    851CC to 1000CCRs5,000Rs15,000
    1001CC to 1300CCRs7,500Rs25,000
    1301CC to 1600CCRs12,500Rs65,000
    1601CC to 1800CCRs18,750Rs100,000
    1801CC to 2000CCRs25,000Rs135,000
    2001CC to 2500CCRs37,500Rs200,000
    2501CC to 3000CCRs50,000Rs270,000
    Above 3000CCRs62,500Rs300,000

     
    Provided that no collection of advance tax under this sub-section shall be made on transfer of vehicle after five year from the date of first registration in Pakistan.

    Every manufacturer of a motor vehicle shall collect, at the time of sale of a motor car or jeep, advance tax at the following rates under Sub-Section 3 of Section 231B of Income Tax Ordinance, 2001 from the person to whom such sale is made:
     

    Engine CapacityTax for FilerTax for Non-filer
    Up to 850CCRs7,500Rs15,000
    851CC to 1000CCRs15,000Rs37,500
    1001CC to 1300CCRs25,000Rs60,000
    1301CC to 1600CCRs50,000Rs150,000
    1601CC to 1800CCRs75,000Rs225,000
    1801CC to 2000CCRs100,000Rs300,000
    2001CC to 2500CCRs150,000Rs450,000
    2501CC to 3000CCRs200,000Rs600,000
    Above 3000CCRs250,000Rs675,000
  • FBR imposes ban on transfers and postings

    FBR imposes ban on transfers and postings

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday imposed ban on postings and transfers with immediate effect till June 30, 2019.

    The FBR said that the revenue collection had entered the last quarter of the current fiscal year and preparation of federal budget for the year 2019/2020 was in full swing.

    Therefore, it has been decided that no further transfer/posting of officers/officials in the field formation of FBR would be made till June 30, 2019.

    The FBR further said that in the cases of hardship or of extreme necessity, the concerned heads of the field formations would be requested to seek board’s prior approval for such transfers/postings.

    The notification has been sent to all heads of field formations of Inland Revenue Service and Pakistan Customs Service.


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    FBR announces major reshuffle; transfers 41 customs officers of BS-17-18

  • FBR updates procedure for mobile device registration

    FBR updates procedure for mobile device registration

    ISLAMABAD: Device Identification Registration and Blocking System (DIRBS) is a system designed to identify non-compliant devices operating on local mobile networks.

    It automatically registers compliant devices operating on the mobile networks and eventually blocks non-compliant devices, according to Federal Board of Revenue (FBR).

    DIRBS has been launched from December, 2018.

    International passengers and Importers are requested to view the following information to confirm the correct procedure for registration of mobile devices.

    The FBR said that for further information on the matter kindly visit: Device Verification System – PTA

  • FBR penalizes two BS-18 officers for inefficiency, misconduct

    FBR penalizes two BS-18 officers for inefficiency, misconduct

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday imposed penalty upon two officers of Inland Revenue Service (IRS) for inefficiency and misconduct.

    In two different notices issued by the FBR the penalty has been imposed on the officers of BS-18.

    Case 01:

    Disciplinary proceedings were initiated against Asad Munir Malik (IRS/BS-18), on recommendations of CCIR, LTU, Lahore vide letter dated 30.03.2016 on account of his unauthorized absence from duty w.e.f. 07.08.2015.

    In the meanwhile, Asad Munir Malik (IRS/BS-18) was transferred from LTU, Lahore to RTO-II, Lahore vide Board’s Notification No.0056-IR-I/2016 dated 08.01.2016.

    Vide Board’s letter dated 28.04.2016, CCIR, RTO-II, Lahore was requested to inform whether the officer joined his new place of posting or otherwise. CCIR, RTO-II, Lahore vide letter dated 26.04.2016 informed that the officer has not joined duty at RTO-II, Lahore and requested for initiation of disciplinary action against the officer.

    The officer was issued Charge Sheet and Statement of Allegations vide letter dated 20.05.2016 and Jehangir Ahmad, the then Commissioner-IR, RTO-II, Lahore was appointed as Inquiry Officer to conduct inquiry on account of acts of omission and commission by the accused officer constituting “Misconduct”.

    Whereas, the inquiry officer submitted inquiry report on 18.09.2018, according to which the charge of “Misconduct” was established against the accused officer.

    On the basis of inquiry report, the accused officer was issued Show Cause Notice on 26.02.2019. In response to Show Cause Notice, the accused officer vide letter dated 13.03.2019 requested for opportunity of personal hearing before the Authorized Officer i.e. Member (Admn) which was granted for personal hearing on 23.04.2019.

    Having gone through the relevant record, report of inquiry officer and verbal explanation during the course of personal hearing of the accused officer, the Authorized Officer opined that although the charges of “Misconduct” leveled against Asad Munir Malik (IRS/BS-18) stood established and found the officer guilty of the said charge.

    However, taking into consideration the domestic issues that officer was facing due to illness of his son and could not attend office and because of indecision by LTU, Lahore on the leave application of the officer, the Authorized Officer, therefore, imposed minor penalty of “Withholding of One (01) Annual Increment without cumulative effect falling on December, 2019” as laid down in Rule 4(1)(a)(ii) of the Government Servant (E&D) Rules, 1973 upon Asad Munir Malik (IRS/BS-18), DCIR, RTO-II, Lahore.

    Performance Allowance in respect of Asad Munir Malik (IRS/BS-18) shall be stopped for six months from the date of award of the above minor penalty as provided in Para 7(ii) of the Performance Allowance Guidelines, 2015 and he shall have to appear afresh for restoration of the same.

    On conclusion of the proceedings, period of unauthorized absence from duty w.e.f. 07.08.2015 to 02.05.2019 shall be treated as leave of kind due as admissible under the rules.

    Asad Munir Malik (IRS/BS-18), Deputy Commissioner-IR, Regional Tax Office-II, Lahore shall have the right to appeal to the Appellate Authority under Civil Servants (Appeals) Rules, 1977 as provided under the relevant Rules.

    Case 02:

    Disciplinary proceedings were initiated against Muhammad Faisal Chaudhary (IRS/BS-18) on account of “Inefficiency”, “Misconduct” and “Corruption” vide Charge Sheet and Statement of Allegations dated 22.04.2016 and Naveed Ahmed Nawab, the then Commissioner-IR, CRTO, Lahore was appointed as Inquiry Officer to conduct inquiry on account of acts of omission and commission by the accused officer constituting “Inefficiency”, “Misconduct” and “Corruption”.

    Whereas, the inquiry officer submitted inquiry report on 20.10.2016. Later on fresh allegations against the officer, on account of unauthorized absence from duty w.e.f 01.10.2016 to 31.10.2016, were raised by the then Chief Commissioner-IR, RTO, Faisalabad vide letter dated 03.11.2016. Therefore, Denovo Inquiry was initiated vide Charge Sheet and Statement of Allegations dated 06.02.2017 and Mr. Muhammad Akram Khan, the then, Chief Commissioner-IR, RTO, Faisalabad was appointed as Inquiry Officer. The inquiry officer submitted inquiry report on 20.09.2017.

    Member (Administration), being Authorized Officer perused the record and found that Inquiry Officer placed reliance upon the first inquiry dated 16.02.2015 and notification dated 15.07.2015 and ignored the fact that in first inquiry period of absence was different than the period of absence mentioned in Inquiry dated 22.04.2016 and Denovo Inquiry dated 06.02.2017.

    Therefore, the accused officer was issued Show Cause Notice on 14.03.2019. In response, the accused officer submitted his reply to the Show Cause Notice vide letter dated 27.03.2019.

    The opportunity of personal hearing before the Authorized Officer i.e. Member (Admn) was granted to the accused officer on 29.04.2019.

    Having gone through the relevant record, report of inquiry officer and verbal explanation during the course of personal hearing of the accused officer, the Authorized Officer opined that the charges of “Inefficiency” & “Misconduct” leveled against Muhammad Faisal Chaudhary (IRS/BS-18) stand established on account of unauthorized absence w.e.f 01.10.2016 to 31.10.2016 whereas, the charge of corruption was not proved vide inquiry report dated 20.10.2016 and Denovo inquiry report taking a lenient view of the situation, the Authorized Officer imposed minor penalty of “Censure” as laid down in Rule 4(1)(a)(i) of the Government Servant (E&D) Rules, 1973 upon Muhammad Faisal Chaudhary (IRS/BS-18), Deputy Commissioner-IR, Regional Tax Office-II, Lahore.

    Performance Allowance in respect of Muhammad Faisal Chaudhary (IRS/BS-18), shall be stopped for six months from the date of award of the above minor penalty as provided in Para 7(ii) of the Performance Allowance Guidelines, 2015 and he shall have to appear afresh for restoration of the same. On conclusion of the proceedings, period of unauthorized absence from duty w.e.f 01.10.2016 to 31.10.2016 shall be treated as leave of kind due as admissible under the rules.

    Muhammad Faisal Chaudhary (IRS/BS-18), Deputy Commissioner-IR, Regional Tax Office-II, Lahore shall have the right to appeal to the Appellate Authority under Civil Servants (Appeals) Rules, 1977 as provided under the relevant Rules.

  • FBR appoints 49 IR Inspectors to strengthen field force

    FBR appoints 49 IR Inspectors to strengthen field force

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday appointed 49 inspectors (BS-16) in Inland Revenue in order to strengthen the field force of tax offices.

    The FBR appointed the tax officials on the recommendations of Federal Public Service Commission (FPSC).

    The FBR also notified place of posting of those officials.

    Following is the list of appointed officials and their place of posting:

    1. Muhammad Mehboob-ur-Rehman Sabir, Regional Tax Office, Islamabad.

    2. Rana Muhammad Awais, Regional Tax Office-II, Lahore.

    3. Salman Munir, Corporate Regional Tax Office, Lahore.

    4. Muhammad Kashif Iqbal, Regional Tax Office, Multan.

    5. Muhammad Abrar Khan, Regional Tax Office, Gujranwala,

    6. Zaighum Waqas, Regional Tax Office, Sargodha.

    7. Muhammad Arif, Regional Tax Office, Rawalpindi

    8. Waqas Zafar Kurar, Regional Tax Office, Gujranwala.

    9. Makwdar Ali, Large Taxpayers Unit, Islamabad.

    10. Zeeshan Waheed, Regional Tax Office, Rawalpindi.

    11. Mohsin Khan, Regional Tax Office, Faisalabad.

    12. Waqas Ali, Regional Tax Office, Islamabad.

    13. Kamran Taj, Regional Tax Office-II, Karachi.

    14. Yasir Sohu, Regional Tax Office-III, Karachi.

    15. Shujah ud din, Regional Tax Office, Sialkot.

    16. Nabil ur Rehman, Corporate Regional Tax Office, Lahore.

    17. Syed Aijaz Ali Shah, Regional Tax Office-III, Karachi.

    18. Muhammad Umair Shaikh, Regional Tax Office-II, Karachi.

    19. Muhammad Usman, Regional Tax Office, Abbottabad.

    20. Syed Zia ur Rehman, Regional Tax Office, Peshawar.

    21. Naveed Ahmad, Regional Tax Office, Peshawar.

    22. Suhail Afzal, Regional Tax Offce, Hyderabad.

    23. Ahmad Baig, Regional Tax Office, Rawalpindi.

    24. Muhammad Kashif, Regional tax Office, Islamabad.

    25. Muhammad Irfan, Regional tax Office, Peshawar.

    26. Yaqub Shah, Regional Tax Office, Peshawar.

    27. Obaid Ullah, Regional Tax Office, Quetta.

    28. Muhammad Wasif, Regional Tax Office-II, Karachi.

    29. Sohaib Zafar, Regional Tax Office-III, Karachi.

    30. Muhammad Ali, Regional tax Office, Quetta.

    31. Sovia Mukhtar, Corporate Regional Tax Office, Lahore.

    32. Maryam Bibi, Regional Tax Office, Rawalpindi.

    33. Maryam Yaqoob, Regional Tax Office, Gujranwala.

    34. Nazia Ghazal, Regional Tax Office-II, Lahore.

    35. Zareena Bashir, Regional Tax Office, Sahiwal.

    36. Makhar, Regional Tax Office, Hyderabad.

    37. Shamila Rasool, Regional tax Office-II, Lahore.

    38. Zakia Shafi, Regional Tax Office, Gujranwala.

    39. Zeenat, Regional Tax Office, Hyderabad.

    40. Kiran Shahzadi, Corporate Regional Tax Office, Karachi.

    41. Rehan Saleem Ahmed, Regional Tax Office, Sialkot.

    42. Raza Inderyas, Regional Tax Office, Sargodha.

    43. Raynaud Hayat, Regional Tax Office, Faisalabad.

    44. Syeda Tabassum, Regional Tax Office-III, Karachi.

    45. Suman, Regional Tax Office-II, Karachi.

    46. Subhash, Regional Tax Office-III, Karachi.

    47. Sadia Bano, Regional Tax Office, Islamabad.

    48. Muhammad Adnan, Regional tax Office, Peshawar.

    49. Naveed Yousaf, Large Taxpayers Unit, Islamabad.

    The FBR directed the officers to join their duties in the office mentioned against their names by May 20, 2019.

  • Sales Tax Act 1990: Vast recovery powers of IR officers

    Sales Tax Act 1990: Vast recovery powers of IR officers

    KARACHI: The officers of Inland Revenue have vast powers under sales tax laws to recover outstanding amount from taxpayers.

    Section 48 of updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR) explained the powers of IR officers for recovery of outstanding amount from taxpayers.

    Section 48: Recovery of arrears of tax.

    Sub-Section (1): Subject to sub-section (1A), where any amount of tax is due from any person, the officer of Inland Revenue may:-

    (a) deduct the amount from any money owing to person from whom such amount is recoverable and which may be at the disposal or in the control of such officer or any officer of Income Tax, Customs or Central Excise Department;

    (b) require by a notice in writing any person who holds or may subsequently hold any money for or on account of the person from whom tax may be recoverable to pay to such officer the amount specified in the notice;

    (c) stop removal of any goods from the business premises of such person till such time the amount of tax is paid or recovered in full;

    (ca) require by a notice in writing any person to stop clearance of imported goods or manufactured goods or attach bank accounts;

    (d) seal the business premises till such time the amount of tax is paid or- recovered in full;

    (e) attach and sell or sell without attachment any movable or immovable property of the registered person from whom tax is due; and

    (f) recover such amount by attachment and sale of any moveable or- immovable property of the guarantor, person, company, bank or financial institution, where a guarantor or any other person, company, bank or financial institution fails to make payment under such guarantee, bond or instrument:

    Provided that the Commissioner Inland Revenue or any officer of Inland Revenue shall not issue notice under this section or the rules made thereunder for recovery of any tax due from a taxpayer if the said taxpayer has filed an appeal under section 45B in respect of the order under which the tax sought to be recovered has become payable and the appeal has not been decided by the Commissioner (Appeals), subject to the condition that ten per cent of the amount of tax due has been paid by the taxpayer.

    Sub-Section (1A): If any arrears of tax, default surcharge, penalty or any other amount which is adjudged or payable by any person and which cannot be recovered in the manner prescribed above, the Board or any officer authorized by the Board, may, write off the arrears in the manner as may be prescribed by the Board.

    Sub-Section (2): For the purpose of recovery of tax, penalty or any other demand raised under this Act, the officer of Inland Revenue shall have the same powers which under the Code of Civil Procedure 1908 (V of 1908), a Civil Court has for the purpose of recovery of an amount due under a decree.

  • FBR may proceed for sales tax blacklisting of M/s. Hascol Petroleum Limited

    FBR may proceed for sales tax blacklisting of M/s. Hascol Petroleum Limited

    KARACHI: Federal Board of Revenue (FBR) will start proceeding to blacklist a major oil marketing company after suspending this week for non-compliance and suppressing sales to evade taxes.

    The FBR suspended the sales tax registration of M/s. Hascol Petroleum Limited earlier this week for evading sales tax to the tune of Rs3.9 billion by concealing actual sales.

    The status of the company for active sales taxpayer is remained suspended on the official FBR website till 2:50AM on May 02, 2019.

    Hascol 01

    The status of the company can be checked at https://e.fbr.gov.pk/atlsearchutility.aspx?PID=BLcOS/IMzEf3Rn3kVI062g== by inserting company’s sales tax registration number (STRN) 1200271018373 or through National Tax Number (NTN) 1496632-8.

    A notice issued on April 29, 2019 for suspending sales tax registration of the OMC said that the company had concealed and evaded sales tax amounting to Rs3.69 billion and further tax amounting to Rs279.84 million.

    “Therefore, registered person is being charged with the contravention of Section 3, 3(1A), 6, 22, 23 and 26 of the Sales Tax Act, 1990 and Rs3.97 billion is recoverable Under Section 11(2) of the Sales Tax Act, 1990, along with default surcharge Under Section 34(1) and penalty Under Section 33(5) the Sales Tax Act, 1990,” according to the notice.

    The notice also stated: “sales tax registration of above mentioned registered person is hereby suspended with immediate effect till finalization of the proceedings,” it added.

    The OMC through a notice to Pakistan Stock Exchange (PSX) on April 30, 2019 flatly denied all the charges stating that it was not involved in any form of theft and tax fraud.

    Some section of press ran the story regarding suspension of sales tax registration of the company along with charges framed by the FBR. The notice sent to the PSX by M/s. Hascol Petroleum Limited also threatened to initiate legal action against such news reports.

    FBR sources said that suspension of sales tax registration of any company was not done on the wishes of a person. It is thorough process and a commissioner of Inland Revenue only issued such order after having sufficient records.

    The sources further said that since the centralization of system the suspension of sales tax registration was done through the main system of Inland Revenue and WeBOC system.

    The sources said: “Commissioner shall issue written order to the concerned registered person detailing the reasons for suspension. The order shall also be provided to all other Large Taxpayer Units (LTUs)/Regional Tax Offices (RTOs), the FBR‘s computer system, the STARR computer system and the Customs Wing computer system for information and necessary action as per law.”

    They also said that suspension of registered person will make them ineligible to avail input tax adjustment/refund. “Similarly, no input tax adjustment/refund shall be allowed to any other registered persons on the basis of invoices issued by such suspended person (whether issued prior to or after such suspension).”

    The sources said that the suspension would also disable a company to file a goods declaration in customs system for clearance of consignment.

    What is post suspension?

    According to FBR’s official website the suspended registered person will be issued a show cause notice (through registered post or courier service) within seven days of issuance of order of suspension by the Commissioner.

    “The registered person will have an opportunity of hearing with fifteen days of the issuance of such notice clearly indicating that he will be blacklisted.”

    In case of non-availability of the suspended person at the given address, the notice may be placed on the main notice Board of the LTU/RTO.

    The sources said that where the show cause notice is not issued within seven days of the order of suspension, the order of suspension shall become invalid.

    The notice issued by LTU Karachi to suspend the registration:

    Hascol 02Hascol 03

  • FBR reduces up to 88 percent sales tax on petroleum products

    FBR reduces up to 88 percent sales tax on petroleum products

    ISLAMABAD: Federal Board of Revenue (FBR) has significantly reduced the sales tax rates up to 88 percent on supply of petroleum products for five days.

    The FBR issued SRO 499(I)/2019 dated April 30, 2019 to announced reduction in sales tax rates on petroleum products.

    The government a day earlier announced not to immediately pass on the rise in oil prices to consumers and referred the issue to the Economic Coordination Committee of the Cabinet to decide the petroleum prices for the month of May 2019.

    Meanwhile, the government absorbed the rise in petroleum price by reducing the sales tax rates on petroleum products till May 05, 2019.

    The FBR amended the SRO 1574(I)/2018 dated December 31, 2018 through the latest notification, under which the sales tax on petrol reduced by 88 percent to 2 percent from 17 percent.

    The sales tax rate on High Speed Diesel has been reduced by 23.6 percent to 13 percent from 17 percent.

    The FBR reduced the sales tax rate on kerosene oil by 53 percent to 8 percent from previous 17 percent.

    Similarly the sales tax rate on light diesel oil has been reduced by 47 percent to 9 percent from 17 percent.

  • Sales Tax Act 1990: Suo Moto powers of FBR, IR Commissioner to call for record

    Sales Tax Act 1990: Suo Moto powers of FBR, IR Commissioner to call for record

    KARACHI: The sales tax laws have authorized suo moto powers to Federal Board of Revenue (FBR) and Commissioner of Inland Revenue (IR) to call for records from department and taxpayers.

    The Section 45 of updated Sales Tax Act, 1990 explained the suo moto powers of FBR and IR commissioner to call for records in any case.

    Section 45A: Power of the Board and Commissioner to call for records:

    Sub-Section (1): The Board may, of its own motion, or otherwise call for and examine the record of any departmental proceedings under this Act or the rules made there under for the purpose of satisfying itself as to the legality or propriety of any decision or order passed therein by an Officer of Inland Revenue, it may pass such order as it may think fit:

    Provided that no order imposing or enhancing any penalty or fine requiring payment of a greater amount of Sales Tax than the originally levied shall be passed unless the person affected by such order has been given an opportunity of showing cause and of being heard.

    Sub-Section (2): No proceeding under 9[this section] shall be initiated in a case where an appeal under Section 45B or Section 46 is pending.

    Sub-Section (3): No order shall be made under this Section after the expiry of five years from the date of original decision or order of the sub-ordinate officer referred to in sub-section (1).

    Sub-Section (4): The Commissioner may, suo moto, call for and examine the record of any proceeding under this Act or the rules made thereunder for the purpose of satisfying himself as to the legality or propriety of any decision or order passed by an officer of Inland Revenue subordinate to him, and pass such order as he may deem fit.

    Section 45B: Appeals

    Sub-Section (1): Any person, other than the Sales Tax Department, aggrieved by any decision or order passed under sections 10, 11, 25, 36, or 66, by an officer of Inland Revenue may, within thirty days of the date of receipt of such decision or order, prefer appeal to the Commissioner Inland Revenue (Appeals):

    Provided that an appeal preferred after the expiry of thirty days may be admitted by the Commissioner Inland Revenue (Appeals) if he is satisfied that the appellant has sufficient cause for not preferring the appeal within the specified period:

    Provided further that the appeal shall be accompanied by a fee of one thousand rupees to be paid in such manner as the Board may prescribe.

    Sub-Section (1A): Where in a particular case, the Commissioner (Appeals) is of the opinion recovery of tax levied under this act, shall cause undue hardship to the taxpayer, he, after affording opportunity of being heard to the commissioner or officer of Inland revenue against whose orders appeal has been made, may stay the recovery of such tax for a period not exceeding thirty days in aggregate.

    Sub-Section (2): The Commissioner Inland Revenue (Appeals) may, after giving both parties to the appeal an opportunity of being heard, pass such order as he thinks fit, confirming, varying, altering, setting aside or annulling the decision or order appealed against:

    Provided that such order shall be passed not later than one hundred and twenty days from the date of filing of appeal or within such extended period as the Commissioner (Appeals) may, for reasons to be recorded in writing fix:

    Provided further that such extended period shall, in no case, exceed sixty days:

    Provided further that any period during which the proceedings are adjourned on account of a stay order or Alternative Dispute Resolution proceedings or the time taken through adjournment by the petitioner not exceeding thirty days shall be excluded from the computation of aforesaid periods.

    Sub-Section (3): In deciding an appeal, the Commissioner of Inland Revenue (Appeals) may make such further inquiry as may be necessary provided that he shall not remand the case for de novo consideration.

  • Sales Tax Act, 1990: FBR may posts IR officer to business premises

    Sales Tax Act, 1990: FBR may posts IR officer to business premises

    KARACHI: Federal Board of Revenue (FBR) may post an officer of Inland Revenue to the premises of a registered taxpayer to monitor sale, purchase and production activities.

    The Section 40 of updated Sales Tax Act, 1990 explained the powers of FBR and Inland Revenue officers under the law.

    Section 40: Searches under warrant

    Sub-Section (1): Where any officer of Inland Revenue has reason to believe that any documents or things which in his opinion, may be useful for, or relevant to, any proceedings under this Act are kept in any place, he may after obtaining a warrant from the magistrate, enter that place and cause a search to be made at any time.

    2) The search made in his presence under sub-section (1) shall be carried out in accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (V of 1898).

    Section 40B: Posting of Inland Revenue Officer

    Subject to such conditions and restrictions, as deemed fit to impose, the Board, may post Officer of Inland Revenue to the premises of registered person or class of such persons to monitor production, sale of taxable goods and the stock position.

    Section 40C: Monitoring or Tracking by Electronic or other means

    Sub-Section (1): Subject to such conditions, restrictions, and procedures, as it may being fit to impose or specified, the Board may, by notification in the official Gazette, specify any registered person or class of registered persons or any good or class of goods in respect of which monitoring or tracking of production, sales, clearances, stocks or any other related activity may be implemented through electronic or other means as may be prescribed.

    Sub-Section(2): From such date as may be prescribed by the Board, no taxable goods shall be removed or sold by the manufacturer or any other person without affixing tax stamp, bandrole stickers, labels, barcodes, etc. in any such form, style and manner as may be prescribed by the Board in this behalf.

    Sub-Section (3): Such tax stamps, banderols, stickers, labels, barcodes etc., shall be acquired by the registered person referred to in sub-section (2) from a licensee appointed by the Board for the purpose, against price approved by the Board, which shall include the cost of equipment installed by such licensee in the premises of the said registered person.