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Tag: Karachi Tax Bar Association

  • KTBA strongly condemns Israel’s atrocities in Palestine

    KTBA strongly condemns Israel’s atrocities in Palestine

    KARACHI: Karachi Tax Bar Association (KTBA) on Wednesday strongly condemned Israeli barbaric attacks on innocent Palestinians and demanded immediate halt of barbaric attacks in Gaza.

    KTBA President Muhammad Zeeshan Merchant, while leading the protest rally, expressed deep anger over the current violent Israeli atrocities on the innocent Palestinians.

    Showing solidarity with the Palestinian people, the tax bar expressed concerns over Israeli aggression and brutality in Palestine and strongly condemned the barbaric attacks on the innocent people.

    “The intensifying assault on Gaza is beyond the pale of humanity,” Merchant said, adding that it was an act of aggression and a pompous show of strength on the part of the Israeli military on innocent and helpless Muslims of Palestine.

    “Our members believe that hundreds of civilians’ causalities are horrendous for this so-called civilized world,” KTBA president said.

    The tax bar also condemned the Israeli attacks on offices of media organizations in Gaza. “We demand the atrocities perpetrated by the Israeli government and the military should be stopped immediately in Gaza.”

    “We believe in survival through co-existence but what is happening is not about the so-called Israeli’s right to exist.”

    The KTBA demanded the government to strongly speak and take stand to safeguard the sanctity of Qibla-e-Awwal as well as the right of Palestinians.

  • KTBA seeks further date extension for sales tax payment, return filing

    KTBA seeks further date extension for sales tax payment, return filing

    KARACHI: Karachi Tax Bar Association (KTBA) on Tuesday urged the Federal Board of Revenue (FBR) to further extend the last date for sales tax payment and filing monthly return as taxpayers are unable to comply with statutory requirement due to extended Eid holidays.

    The tax bar asked the tax authorities to extend the date of payment of sales tax and date of e-filing of the monthly sales tax return for the period April 2021 till May 24, 2021 and May 27, 2021, respectively to facilitate members of the bar and the compliant taxpayers to fulfill their legal obligation.

    While referring to a notification previously issued by the FBR to extend the date for payment of sales tax and filing monthly return for the period April 2021 issued on May 06, 2021, the date of payment was extended up to May 18, 2021 followed by filing of sales tax return till May 21, 2021.

    The KTBA said that may taxpayers and bar members had approached the association informing that the extended date (two days) for payment of sales tax for the tax period April 2021 was insufficient as businesses were not functional properly after Eid Holidays that were during May 10 to May 15, 2021 followed by Sunday on May 16, 2021.

    The KTBA also highlighted that in many cases taxpayers were unable to submit Annexure C as the last date of furnishing of Annexure C was May 10, 2021 which was also a holiday on account of Eid. It is important to note that unless Annexure C is submitted, sales tax payment amount cannot be calculated as payment of sales tax is dependent upon submission of Annexure C.

    The tax bar further informed that provincial revenue authorities had extended deadline for payments and filing of their respective sales tax returns between May 21 and May 27.

    “It is important to highlight that federal sales tax return cannot be furnished before the dates as extended by the provincial revenue authorities owing to the fact that input tax relating to services falling under the provincial domain can only be claimed in federal sales tax return once corresponding provincial sales tax return has been submitted by respective service provider,” the KTBA said.

  • Implementing full fledged VAT recommended in budget

    Implementing full fledged VAT recommended in budget

    Tax experts, gathered under the banner of the Karachi Tax Bar Association (KTBA), have strongly recommended the implementation of a comprehensive Value Added Tax (VAT) by the Federal Board of Revenue (FBR).

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  • Framing sales tax rules for e-commerce recommended

    Framing sales tax rules for e-commerce recommended

    KARACHI: Tax practitioners have suggested the Federal Board of Revenue (FBR) for framing rules to bring e-commerce under sales tax laws.

    The tax practitioners under the umbrella of Karachi Tax Bar Association (KTBA) discussed upcoming budget 2021/2022 and proposed a comprehensive rules for e-commerce under sales tax laws.

    It is discussed that e-commerce of goods as well as services has gained significant momentum particularly in post COVID era. Through digital platforms, large number of vendors/service providers from informal economy can reach customers without setting up proper business structure.

    It is difficult not only for the tax authorities to capture such activity but also for the compliant taxpayers who want to discharge their obligations under the tax laws.

    Therefore, it is suggested that relevant provisions be amended, and detailed rules be framed for ecommerce in line with global best practices core features of which are:

    — Digital platforms, due to their control on the transactions, should be held responsible for collection and payment of sales tax where the vendor is unregistered

    — Small vendors earning revenue below 5 Million be exempted from getting registration under the Act

    — Appropriate provision for exemption from withholding tax should also be introduced

  • FBR urged to prescribe time limit for audit conclusion

    FBR urged to prescribe time limit for audit conclusion

    The Karachi Tax Bar Association (KTBA) has called upon the Federal Board of Revenue (FBR) to institute a definitive time limit for concluding audit proceedings in sales tax cases.

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  • Withholding agents should be allowed filing separate statements for salary cases

    Withholding agents should be allowed filing separate statements for salary cases

    KARACHI: Tax practitioners have urged the Federal Board of Revenue (FBR) to allow withholding agents to file separate statements for salary and other than salary cases.

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  • WTO tariff heading proposed for sales tax on services

    WTO tariff heading proposed for sales tax on services

    KARACHI: Tax practitioners have urged the Federal Board of Revenue (FBR) to adopt tariff headings of World Trade Organizations (WTO) for effectively impose sales tax services.

    Tax practitioners under the umbrella of Karachi Tax Bar Association (KTBA) held a pre-budget 2021/2022 conference and discussed issues of sales tax on services.

    It is discussed that all the service sales tax laws contain their own list of taxable services, which are couched in such a way that there are many entries with overlapping scope which lead to interpretational issues.

    Further all the provincial laws envisage origin as well as destination principle for levying tax on service- double taxation Proposal.

    It is recommended that the government should co-ordinate to promulgate negative list approach and specify place of supply rules at earliest.

    It is suggested: “WTO tariff heading for services may also be adopted.”

    It is discussed that despite lapse over ten years, since promulgation of 18th Constitutional Amendment, disputes regarding jurisdiction and basis for levying the sales tax are still unresolved.

    A lot of unnecessary litigation on such issues has piled up.

    National Tax Council has been announced to resolve such issues, however, no tangible results till date.

    It is proposed that the governments should resolve jurisdictional disputes at earliest.

  • Tax fraud cases should be investigated through special directorate

    Tax fraud cases should be investigated through special directorate

    KARACHI: Tax practitioners have discussed sales tax matters at a pre-budget seminar and recommended that tax fraud cases should be investigation through a special directorate.

    Members of Karachi Tax Bar Associations (KTBA) in the pre-budget seminar discussed various issues pertaining to sales tax laws.

    They highlighted the issue where jurisdiction for audit and adjudication of cases involving tax fraud as well as routine audit and assessments lies with the same officer. Further, the two proceedings require different type of skill set and approach.

    It is also discussed that same officer is responsible for conducting audit and adjudication- KTBA also filed petition in SHC seeking segregation of same which still pending

    Lack of segregation, results in inefficiency and undue harassment of law compliant taxpayer, as officers invariably include allegation of tax fraud in almost every show cause notice, the members discussed.

    They proposed for the budget 2021/2022 that cases of tax fraud should be investigated and adjudicated by a Special Directorate to be set up for this purpose.

    Further, concerned officer exercising jurisdiction over a taxpayer, if has determined that taxpayer is involved in suspicious/criminal activity the case should be turned over to the Special Directorate.

    Function of conducting audit and assessment of tax/adjudication should also be separated

    Detailed framework / rules should be prescribed after consultation with all the stakeholders.

  • Corporate tax rate should be brought down to 25pc

    Corporate tax rate should be brought down to 25pc

    KARACHI – Tax practitioners gathered at a pre-budget seminar organized by the Karachi Tax Bar Association (KTBA) have urged the government to consider reducing the corporate tax rate to 25 percent in the upcoming budget for 2021/2022.

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  • FBR advised to use withholding statements for identifying new taxpayers

    FBR advised to use withholding statements for identifying new taxpayers

    KARACHI: Tax practitioners have advised the Federal Board of Revenue (FBR) to examine withholding statements and extract information of persons not paying taxes and not filing their annual returns.

    The members of Karachi Tax Bar Association (KTBA) in their pre-budget 2021/2022 seminar urged the FBR for mining of its database to identify new taxpayers & those not fully discharging their liabilities

    FBR should extract information from withholding statements, details of government supplies and maintain a database of above third party information, according to a presentation made by Haider Patel, former president, KTBA.

    He further suggested that relevant organizations, departments, institutions including utility companies, banks, NADRA and information obtained related to offshore transactions should submit prescribed information on quarterly basis to the FBR.

    The FBR has been further advised effective enforcement for compliance of filing of Return of Income under section 114 of Income Tax Ordinance, 2001.