KARACHI: A person making taxable supplies is required to maintain record of goods and keep at his office for scrutiny by tax officials.
(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.
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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.
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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.
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Procedure to get WeBOC registration for online customs access
KARACHI: Federal Board of Revenue (FBR) has issued procedure to get registration for WeBOC in order to access the Customs online system for consignment clearance.
According to the procedure, a person is required to submit an application to Deputy/Assistant Collector WeBOC User-ID Section, along with supportive/required documents.
For the registration personal appearance of applicant before Deputy / Assistant Collector User-ID Section is mandatory with original CNIC.
The customs staff will take digital picture and thumb impression of the applicant upon personal appearance.
The customs authorities may visit of the business premises (wherever required) as mentioned by the applicant.
After thorough verification the customs authorities may accept or reject the application.
On acceptance of the application the customs authorities to create User-ID and issue Login-ID and automatic sending of computer generated password to the applicant through email.
For the WeBOC registration following details would be required:
NTN Number *
STRN *
Business Name *
Business Address *
Contact Person Name *
Contact Person CNIC *
Phone Number 1*
Phone Number 2
Fax Number
Cell Number*
Contact Person Email id *
Bank Name
Branch City
Branch Name
Account Number
License Number
Collectorate
Warehouse (In case of Warehouse)
Shipping Line Type (In case of Shipping Line)
Location (In case of Terminal Operator)
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FBR suspends zero rating on electricity to textile unit
ISLAMABAD: Federal Board of Revenue (FBR) has suspended sales tax zero rating allowed to a textile unit on consumption of electricity.
The FBR issued Sales Tax General Order (STGO) No. 51 of 2019 and suspended sales tax zero rating under SRO 1125(I)/2011 dated December 31, 2011 of Habib Fabric Private Limited.
The zero rating of the taxpayers has been suspended on the recommendation of Regional Tax Office (RTO) Faisalabad.
The FBR directed Chief Commissioner RTO Faisalabad to coordinate with power supply company to implement the normal tax rate. The RTO has also been asked to submit report in respect of action taken/recovery made for misuse of the facility.
The FBR also asked Faisalabad Electric Supply Company (FESCO) to start charging sales tax on the supply of electricity in respect of the said consumer with immediate effect (April 10, 2019).
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FBR may redefine motor vehicle for withholding tax collection
KARACHI: Federal Board of Revenue (FBR) to recommend the government to redefine withholding tax on motor vehicles to bring construction and heavy vehicles into tax net.
The FBR sources said that the FBR may propose amendment to Section 231B(7) of Income Tax Ordinance, 2001.
This section presently defined motor vehicle, including car, jeep, van, sports, utility vehicle, pick up trucks for private use, caravan automobile, limousine, wagon and any other automobile used for private purpose.
The proposed amendment to section is:
“Motor vehicle includes car ,jeep, van, sports, utility vehicle, pick up trucks for private use, caravan automobile , limousine , wagon and any other automobile used for private purpose, any mechanically propelled vehicle adapted for use upon roads whether the powers of propulsion in transmitted thereto from an external or internal source, and includes a chassis to which a body has not been attached, a tractor and a trailer, a combined harvester, a rig, a fork lifter a road roller, construction and earth moving machinery such as a wheel loader, a crane, an excavator, a grader, a dozer and a pipe layer, a road making and road/sewerage cleaning plant and any other motor vehicle as defined under provincial Motor Vehicles Ordinance 1965 and any other law.”
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Sales Tax Act 1990: persons required to get registration
KARACHI: All the persons engaged in making taxable supplies are required to get sales tax registration.
According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 14 of the Act, explained the requirement of registration.
Section 14: Registration
Sub-Section (1): Every person engaged in making taxable supplies in Pakistan, including zero-rated supplies, in the course or furtherance of any taxable activity carried on by him, falling in any of the following categories, if not already registered, is required to be registered under this Act, namely:-
(a) a manufacturer who is not running a cottage industry;
(b) a retailer who is liable to pay sales tax under the Act or rules made thereunder, excluding such retailer required to pay sales tax through his electricity bill under sub-section (9) of section 3;
(c) an importer;
(d) an exporter who intends to obtain sales tax refund against his zero-rated supplies;
(e) a wholesaler, dealer or distributor; and
(f) a person who is required, under any other Federal law or Provincial law, to be registered for the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be collected under the Act.
Sub-Section (2): Persons not engaged in making of taxable supplies in Pakistan, if required to be registered for making imports or exports, or under any provisions of the Act, or any other Federal law, may apply for registration.
Sub-Section (3): The registration under this Act shall be regulated in such manner as the Board may, by notification in the official Gazette, prescribe.
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FBR lodges FIR against Shaheen Air for tax fraud
KARACHI: Federal Board of Revenue (FBR) has lodged First Information Report (FIR) against Shaheen Air International Limited for committing tax fraud to the tune of Rs 1 billion.
According to a copy of FIR made available to PkRevenue.com, the registered person has committed tax fraud as defined under section 2(37) of Sales Tax Act, 1990 in contravention to Section 11 (1) and 11 (4A) of the Sales Tax Act, 1990 read with the Sales Tax General Order No. 03 of 2004, dated June 12, 2004 and Section 4, 14 and 19 (1) of the Federal Excise Act, 2005 read with sub-rule 9 of the rule 41A, 47 and 60(1)(2)(3)(4) Table II etc.
The registered person M/s. Shaheen Air International (Pvt) Limited has failed to deposit government revenues, which the payment has collected / withheld from various passengers / travelers who opted to travel through the defrauder’s airline and has committed tax fraud within the maning and scope of tax laws.
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RTO Karachi recommends revival of minimum tax for commercial importers in budget 2019/2020
KARACHI: Regional Tax Office (RTO) – II Karachi has recommended revival of minimum tax regime for commercial importers in the budget 2019/2020.
According to budget proposals sent to Federal Board of Revenue (FBR), the RTO-II Karachi recommended that Final Tax Regime for commercial importers should be withdrawn as it was creating distortion in the taxation system.
Sources said the FBR had been asked that the scope of Minimum Tax Regime (MTR) should be extended to commercial importers under Section 148 of the Income Tax Ordinance 2001 and for of goods under Section 153(I) and execution of contracts under section 153(1)(c) and Section 233 of the ordinance.
The RTO-II said that presently, the entire FTR sector, especially the commercial importers (by paying more six percent of tax), are at liberty to declare imputable income of their choice to explain assets or expenses.
This provision would bring them at par with other taxpayers, who do not enjoy this luxury, the FBR informed.
The RTO-II Karachi proposed concept of imputable income from FTR receipts: Section 169(4) which was ommitted through Finance Act 2004 may be re-incorporated in law.
This proposals should be made part of the budget in order to discourage those taxpayers who take undue benefit of provisions of law related to final tax regime and whiten those assets / incomes as well which are not from FTR recipts.
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Sales Tax Act 1990: exemption on domestic supplies, imports
KARACHI: The government has allowed exemption on supply of goods and import of goods falling in the Sixth Schedule of Sales Tax Act, 1990.
Section 13 of updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), explained the exemptions on domestic supplies and imported goods.
Section 13: Exemption
Sub-Section (1): Notwithstanding the provisions of section 3, supply of goods or import of goods specified in the Sixth Schedule shall, subject to such conditions as may be specified by the Federal Government, be exempt from tax under this Act.
Sub-Section (2): Notwithstanding the provisions of sub-section (1) –
(a) the Federal Government may, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations, protection of national economic interests in situations arising out of abnormal fluctuation in international commodity prices, removal of anomalies in taxes, development of backward areas and implementation of bilateral, multilateral agreements and matters relating to international financial institutions or foreign government-owned financial institutions by notification in the official Gazette, exempt any taxable supplies made or import or supply of any goods or class of goods, from the whole or any part of the tax chargeable under this Act, subject to the conditions and limitations specified therein;
Sub-Section (3): The exemption from tax chargeable under sub-section (2) may be allowed from any previous date specified in the notification issued under clause (a).
Sub-Section (4): omitted
Sub-Section (5): omitted
Sub-Section (6): The Board shall place before the National Assembly all notifications issued under this section in a financial year.
Sub-Section (7): Any notification issued under sub-section (2), after 1st July, 2015 shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued:
Provided that all such notifications, except those earlier rescinded, shall be deemed to have been in force with effect from the 1st July, 2016 and shall continue to be in force till the 30th June, 2018, if not earlier rescinded:
Provided further that all notifications issued on or after the first day of July, 2016 and placed before the National Assembly as required under sub-section (6) shall continue to be in force till thirtieth day of June, 2018, if not earlier rescinded by the Federal Government or the National Assembly.