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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.

  • FBR issues procedure for obtaining NTN, company registration

    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

    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

    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.

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  • FBR issues procedure for making payment through internet, ATM, mobile banking

    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

    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.

  • Procedure to get WeBOC registration for online customs access

    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)

  • FBR suspends zero rating on electricity to textile unit

    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).

  • FBR may redefine motor vehicle for withholding tax collection

    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.”

  • Sales Tax Act 1990: persons required to get registration

    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.

  • FBR lodges FIR against Shaheen Air for tax fraud

    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.