As per Section 24 of the Sales Tax Act, 1990, a person engaged in taxable supplies is mandated to preserve records and documents for a period of six years, effective from the end of the tax period to which such records or documents relate.
(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.
-
FBR amends requirement of cash withdrawal information by banks
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued new instructions to banks regarding providing details of cash withdrawal by filers and non-filers.
The FBR issued SRO 469(I)/2019 dated April 17, 2019 to amend SRO 1165(I)/2018 dated September 28, 2018. The amendment has been made regarding amount deducted on cash withdrawal from banks by filers and non-filers during a month.
Through SRO 1165(I)/2018, the FBR changed the reporting criteria for banks under Income Tax Rules, 2001. Under the revised reporting criteria banks have been required to provide information of persons who have withdrawn cash exceeding Rs50,000 in a day and tax deductions thereon for filers and non-filers, aggregating to Rs 1 million or more during a month.
The banks are required to provide information of cash withdrawal including name of person, CNIC, address, amount withdrawn during a month.
However, through the latest SRO the FBR added a column of amount of tax deducted to the table of information.
-
Sales Tax Act 1990: requirement of issuing tax invoice
KARACHI: A person making taxable supplies is required to issue serially numbered tax invoice at the time of making supply of goods.
According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 23 of the Act explained the requirement of issuing tax invoice.
Section 23: Tax Invoices
Sub-Section (1): A registered person making a taxable supply shall issue a serially numbered tax invoice at the time of supply of goods containing the following particulars, namely: –
(a) name, address and registration number of the supplier;
(b) name, address and registration number of the recipient;
(c) date of issue of invoice;
(d) description and quantity of goods;
(e) value exclusive of tax;
(f) amount of sales tax; and
(g) value inclusive of tax:
Provided that the Board may, by notification in the official Gazette, specify such modified invoices for different persons or classes of persons:
Provided further that not more than one tax invoice shall be issued for a taxable supply.
Sub-Section (2): No person other than a registered person or a person paying retail tax shall issue an invoice under this section.
Sub-Section (3): A registered person making a taxable supply may, subject to such conditions, restrictions and limitations as the Board may, by notification in the official Gazette, specify, issue invoices to another registered person electronically and to the Board as well as to the Commissioner, as may be specified.
Sub-Section (4): The Board may, by notification in the Official Gazette, prescribe the manner and procedure for regulating the issuance and authentication of tax invoices.
-
Sales tax auditors form association against FBR’s unfair treatment
KARACHI: The officers of Sales Tax have formed an association to voice against biased treatment of Federal Board of Revenue (FBR).
A statement issued on Tuesday said that Senior Auditors of BS-16 and Audit Officers of BS-16 had formed the association against unfair treatment of the FBR.
They said that the sales tax officers had been continuously ignored after the integration of services by the FBR.
They said that the BS-18 audit officers had been compelled to work under BS-16 and BS-19 officers of Income Tax.
The statement said that the situation was frustrating as officers having 20 years experience were compelled to work under inexperienced income tax officers. This situation has also jeopardized the revenue collection efforts.
The statement pointed out that sales tax officers having higher education caliber including MBA, MCOM, ICMA etc, had been deprived of promotions. Instead those officers were upgraded in the name of promotions.
It said that the sales tax wing was major arm of FBR and contributing huge sum in the shape of revenue collection. But the FBR is continuously ignoring the experience of sales tax officers, which is resulting in massive revenue shortfall.
The association requested Prime Minister Imran Khan, Finance Minister Asad Umar and State Minister Hamad Azhar to take notice of unfair treatment of FBR and resolve the issue.
-
FBR promotes 114 inspectors to BS-16 Revenue Officers
ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday notified promotion of 114 inspectors of Inland Revenue and Assistant Private Secretaries to the post of Revenue Officers (BS-16) on regular basis with immediate effect.
Following officers have been promoted:
01. Muhammad Aslam, Regional Tax Office (RTO) Rawalpindi
02. Muhammad Arshad, Large Taxpayers Unit (LTU) Islamabad
03. Abbas Jan Muhammad, RTO-II Karachi
04. Muhammad Shakil, Intelligence and Investigation (I&I), IR Karachi
05. Muhabat Ikhlaq, RTO Gujranwala
06. Abdul Rasool Soomro, RTO Hyderabad
07. Liaqat Ali Sahu, RTO Sukkur
08. Niaz Ali Bhan, Internal Audit (IR), Hyderabad
09. Muhammad Rahim Khan, Directorate General I&I IR, Islamabad
10. Muhammad Ashraf, RTO Faisalabad
11. Umar Hayat, RTO Faisalabad
12. Samiullah Khan, RTO Sargodha
13. Muhammad Intezar, RTO Sargodha
14. Javed Iqbal Qureshi, RTO Sargodha
15. Khalid Hayat, RTO Rawalpindi
16. Muhammad Muaaz Khalid, RTO Sargodha
17. Abdul Saleem Tariq, RTO Gujranwala
18. Muhammad Ramzan, RTO Gujranawala
19. Muhammad Ghias Khan, RTO Sialkot
20. Muhammad Nadeem, LTU Lahore
21. Iqtidar Ahmed, LTU Lahore
22. Manstoor Najeeb, RTO-II Lahore
23. Nisar Hussain, Corporate RTO Lahore
24. Malik Riaz Ahmed, Corporate RTO Lahore
25. Abdul Waheed, RTO-II Lahore
26. Tariq Baig, Corporate RTO Lahore
27. Syed Muzaffar Ali Langa, RTO Hyderabad
28. Shafqat Ali Arain, Directorate of Internal Audit IR Karachi
29. Muhammad Aslam Qureshi, RTO Hyderabad
30. Syed Shabbir Ahmed Shah, RTO Hyderabad
31. Abdul Lateef Kerio, RTO Hyderabad
32. Ameer Ali Kerrio, RTO Hyderabad
33. Ghulam Sarwar, Corporate RTO Karachi
34. Muhammad Aslam Chandio, RTO Sukkur
35. Allah Bux Agham, Additional Directorate of Internal Audit IR Sukkur
36. Ghulam Ali Kakepata, RTO Quetta
37. Mardan Ali, RTO Sukkur
38. Pir Naveed Ahmed, RTO Sukkur
39. Jamil Ahmed Soomro, Corporate RTO Karachi
40. Abdul Nabi Khokhar, RTO Sukkur
41. Muhammad Ayub Brohi, RTO Quetta
42. Abdul Khalique Jamali, RTO Hyderabad
43. Ishq Ali Magsi, RTO Sukkur
44. Imamuddin Zardari, RTO Hyderabad
45. Abdul Jabbar Bhutto, RTO-III Karachi
46. Rashid Hussain Soomro, RTO Sukkur
47. Nazir Ali Keerio, RTO Hyderabad
48. Aftab Ahmed Thallo, RTO Quetta
49. Rashid Ahmed Shahani, RTO Sukkur
50. Pir Sharful Haq Qureshi, RTO Hyderabad
51. Hussain Bukksh Shahani, RTO Hyderabad
52. Zulfiqar Ali Jamali, RTO Hyderabad
53. Saleem Ahmed Hakro, RTO Sukkur
54. Muhammad Rafique Magsi, RTO Quetta
55. Sultan Ahmed Magsi, LTU-II, Karachi
56. Mujeeb-ur-Rehman, RTO Sukkur
57. Agha Avais Khan, RTO Sukkur
58. Kashif Ali Shah, Corporate RTO Karachi
59. Muneer Ahmed Brohi, RTO Sukkur
60. Irfan Ali Umrani, RTO Quetta
61. Mujahid Hussain Shah, RTO Sukkur
62. Mazhar Ali Shah, RTO Sukkur
63. Mumtaz Ali Siyal, RTO Sukkur
64. Shafique Ahmed Mengal, RTO Quetta
65. Azhar Ali Bhutto, RTO Sukkur
66. Muhammad Aftab Amin, Corporate RTO Karachi
67. Ambrat Rai Chawla, LTU-II Karachi
68. Tahir Hussain Shah, RTO Sukkur
69. Syed Zaheer Haider Zaidi, LTU Karachi
70. S Q Aijaz ul Haq, RTO Hyderabad
71. Ghulam Muhammad Memon, RTO Hyderabad
72. Ashouk Kumar Rathi, RTO Hyderabad
73. Madad Ali Bhatti, RTO Hyderabad
74. Sarfraz Ali, RTO Bahawalpur
75. Zafar Iqbal, RTO Bahawalpur
76. Muhammad Yamin, RTO Bahawalpur
77. Sajid Hussain, RTO Sahiwal
78. Rao Abdul Qayyum, RTO Bahawalpur
79. Muhammad Hafeez Watto, RTO Bahawalpur
80. Riaz Ahmed, RTO Bahawalpur
81. Mashooq Hussain, RTO Multan
82. Rab Nawaz, I&I IR Multan
83. Abdur Rasheed, RTO Multan
84. Syed Ghulam Mustafa, RTO Sahiwal
85. Irshad Ahmed Bajwa, RTO Sahiwal
86. Muhammad Iqbal, RTO-II Lahore
87. Masood-ul-Hassan, RTO Sahiwal
88. Ahmed Shafique Elahi, RTO Faisalabad
89. Ch. Muhammad Kha, RTO Rawalpindi
90. Syed Ali Atif Jaffary, RTO Rawalpindi
91. Humayun Khan Durrani, RTO Rawalpindi
92. Rao Baber Ali Khan, LTU Islamabad
93. Naseer Ahmed, RTO Peshawar
94. Ms. Salma Sharif, RTO Islamabad
95. Akhtar Mehmood, RTO Islamabad
96. Arshad Mahmood Baig, RTO Islamabad
97. Muhammad Khalid Gill, FBR HQ Islamabad
98. Waqar Haider, RTO Islamabad
99. Altaf Hussain Khan, LTU Islamabad
100. Muhmmad Shomail Aslam Khan Tareen, RTO Islamabad
101. Saqib Faryad Malik, RTO Islamabad
102. Raja Riffat Hayat, RTO Sargodha
103. Ghulam Sarwar Shaikh, Directorate of Internal Audit, Sukkur
104. Ayaz Ali Shaikh, LTU II Karachi
105. Shahanshah Muhammad Yousaf, RTO-II Karachi
106. Ghulam Raza, LTU-II Karachi
107. Salman Qamar, RTO-II Karachi
108. Gain Chand Chawala, RTO-II Karachi
109. Akif Sohail APS, Corporate RTO Lahore
110. Muhammad Jawed, APS, IR Appeals-I Karachi
111. Muhammad Nadeem, APS, I&I IR Karachi
112. Muhamamd Islam, APS, RTO Peshawar
113. Tahir Pervaiz, APS, Corporate RTO Lahore
114. Abdul Khaliq Ch. APS, RTO Islamabad
The FBR said that the promotion would take effect from the date of joining by the officers, subject to the condition that no disciplinary proceedings were pending against them.
-
FBR issues procedure for obtaining NTN, company registration
ISLAMABAD: Federal Board of Revenue (FBR) has issued procedure for getting National Tax Number (NTN) and registration with Securities and Exchange Commission of Pakistan (SECP) through Virtual One Stop Shop (VOSS).
The FBR and SECP have launched a one-window facility for Company incorporation and National Text Number (NTN) registration.
This facility enables companies to be registered with SECP and FBR in one go without having to visit FBR offices or its website.
For the convenience of all stakeholders, the process to be followed is outlined as under:
Step 1- Taxpayer will visit the SECP website (https://www.secp.gov.pk) and complete the company incorporation application as before;
Step 2- As soon as company is incorporated, data of the company and its directors will be forwarded to FBR through an automated web service;
Step 3- FBR system will run an auto-process to verify if all the directors registered taxpayers of FBR. If all the directors are already registered taxpayers, then process will jump to Step 6;
Step 4- If any Director(s) are not registered with FBR, system will automatically register each unregistered director on the basis of data provided by SECP;
Step 5- System will send confirmation email and SMS to each director on successful registration;
Step 6- System will automatically create FBR registration application on behalf of company, process the application and register the company within FBR;
Step 7- System will send confirmation email and SMS to company representative on successful registration;
Step 8- FBR will intimate SECP about registration of Taxpayers within FBR.
The FBR said that the process from Step-3 to Step-8 is totally system-based without any human involvement which will save time and effort of the taxpayer and improve the efficiency of the system.
-
Cabinet to approve money whitening amnesty scheme today
ISLAMABAD: The federal cabinet may consider and approve the new amnesty scheme today which is meant for whitening the ill-gotten money.
The scheme may continue till the end of current fiscal year and it would be offered for domestic and foreign undisclosed assets. The scheme may be prolonged beyond July 2019.
The amnesty would also be offered for gold and cash in bank accounts at different rate of taxes.
After approval from federal cabinet the government would introduce the scheme through promulgation of presidential ordinance and subsequently would approve from the parliament through finance bill.
Many stakeholders are not in favor of giving tax dodgers another opportunity through money whitening scheme as the domestic and international laws are strengthened against tax evasion.
The FBR during the last three months also demonstrated efforts against tax evaders through confiscation of properties and other assets besides arrests in tax evasion.
However, the FBR sources believed that the fear created during the past three months and data gathered regarding businessmen was sufficient to make the amnesty scheme a success.
-
Sales Tax Act 1990: maintaining record for taxable supplies
KARACHI: A person making taxable supplies is required to maintain record of goods and keep at his office for scrutiny by tax officials.
(more…) -
FBR issues procedure for making payment through internet, ATM, mobile banking
ISLAMABAD: Federal Board of Revenue (FBR) has issued procedure for payment of duty and taxes through alternate delivery channels (ADC) including internet banking, ATM and mobile banking.
The FBR said that it had launched the system of payment of taxes through ADC under which taxpayers would now be able to make payments of federal taxes and duties i.e. income tax, sales tax, customs duty and Federal Excise Duty (FED) from any commercial bank account through internet banking, ATM, mobile banking and contact centers/
Availability of these options will improve the efficiency of the system, provide convenience for taxpayers and improve ease of doing business in Pakistan.
The FBR outlined the process for making payment for the convenience of all stakeholders:
Taxpayer will login to the FBR system (https://e.fbr.gov.pk) and prepared the PSID as before. However, he / she will select the ADC payment mode on the PSID;
Taxpayer will note down the PSID number for further processing;
Taxpayer will login to the online banking system of his/her bank through computer or mobile phone or visit ATM facility. The bill payment screen of the bank shall reflect ‘FBR’ as biller. The taxpayer shall click the option ‘FBR’. The bank/ATM screen shall require the taxpayer to enter the PSID number. The screen will appear for making payment to FBR.
By entering PSID, the payment details shall be visible to the taxpayer for approval of the payment of taxes. Upon confirmation, the bank account of taxpayer shall be debited and a message of successful transaction shall be visible on the screen;
Within three hours of confirmation, the payment will be marked as paid. A CPR will be provided to the taxpayer through e-mail and confirmation message sent on SMS. At the same time CPR will be available on FBR system for further use.
-
Sales Tax Act 1990: Invoice issued by suspended taxpayers not to be entertained for refund, input adjustment
KARACHI: Any invoice issued by a person, who is suspended or black listed by tax authorities, may not be acceptable for refund claim or input adjustment by another registered person.
According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 21 of the Act explained the de-registration, blacklisting and suspension of sales tax registration.
Section 21: De-registration, blacklisting and suspension of registration.
Sub-Section (1): The Board (FBR) or any officer, authorized in this behalf, may subject to the rules, de-register a registered person or such class of registered persons not required to be registered under this Act.
Sub-Section (2): Notwithstanding anything contained in this Act, in cases where the Commissioner is satisfied that a registered person is found to have issued fake invoices or has otherwise committed tax fraud, he may blacklist such person or suspend his registration in accordance with such procedure as the Board may by notification in the official Gazette, prescribe.
Sub-Section (3): During the period of suspension of registration, the invoices issued by such person shall not be entertained for the purposes of sales Tax refund or input tax credit, and once such person is black listed, the refund or input tax credit claimed against the invoices issued by him, whether prior or after such black listing, shall be rejected through a self-speaking appealable order and after affording an opportunity of being heard to such person.
Sub-Section (4): Notwithstanding anything contained in this Act, where the Board, the concerned Commissioner or any officer authorized by the Board in this behalf has reasons to believe that a registered person is engaged in issuing fake or flying invoices, claiming fraudulent input tax or refunds, does not physically exist or conduct actual business, or is committing any other fraudulent activity, the Board, concerned Commissioner or such Officer may after recording reasons in writing, block the refunds or input tax adjustments of such person and direct the concerned Commissioner having jurisdiction for further investigation and appropriate legal action.