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Showing posts from February, 2020

What is Point of Sale (POS) Invoicing System?

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It is the online real-time system used for documentation of sales which connects FBR’s system to computerized sales system if Tier-1 retailers. There is no need for retailers to purchase any machine to connect to that system as they can get connected by simply downloading an app ‘Tax Asaan App’ on their smartphones. QR code or barcode automatically gets printed on the invoice generated through the sale by the retailer. Customers can easily verify their sales tax payment by Tax Asaan App installed on their smartphones. This system will help retailers in automatic preparation of sales tax returns that will also help them to reduce their expenditures. The use of POS system will also end the periodic inspection on FBR officials. POS system is working successfully at 3824 outlets of 70 top textile and leather brands for over a year. This system has been on all restaurants in Islamabad and all shopping store chains across the country from November 2019. This app is availabl

How to apply for NTN online

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You can apply for NTN through the website: https://e.fbr.gov.pk , by following steps given: Step 1: Go to https://e.fbr.gov.pk to apply for NTN Step 2: From the drop-down menu ‘e-Registration’, select new e-registration to start with a new application. Step 3: Select the application type (New Registration, Change in Particulars’ ST FED Registration, Duplicate Certificate) Step 4: Select the taxpayer type (Individual, AOP, or Company) Step 5: Enter the CNIC / NTN / Reg. Inc, according to the selected taxpayer type, Name and image character then click ok to proceed. Step 6: Already selected category will appear on the next screen (Individual, AOP, and Company). Step 7: After the completion of the online registration form, verify and submit the application if you want to apply online. To process from TFC, submit the application along with documents at our TFC counter. Step8: A token number will be assigned to the application for further processing/ approval/inquiry. N

How Overseas Pakistani can become tax filer

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If you're a citizen of Pakistan residing in an exceedingly foreign country, you may have some queries relating to filing your tax returns. Or even you would like to know if you'll become a tax filer, to start with. Whereas the prospect of handling taxes could appear overwhelming to some, the method through that overseas Pakistanis become tax filers is sort of easy. Before we have a tendency to discuss however Pakistani expats will file tax returns from the comfort of their homes, let’s address a number of common misconceptions and queries you may have. Do Overseas Pakistanis Have to File Taxes? The simple answer is yes, overseas Pakistanis ought to file taxes. However, they're solely taxed on their Pakistan-sourced income. Taxation in Pakistan, very like in different countries, relies on an individual’s residential status rather than their position. Previously, someone was thought-about a tax resident if they keep within the country for a period of 183 days (or lo

What is the exemption from penalty and default surcharge?

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The Federal Government may, by notification in the Official Gazette, or the Board by an order published in the Official Gazette for reasons to be recorded in writing, exempt any person or class of persons from payment of the whole or part of the penalty and default surcharge payable under this Ordinance subject to such conditions and limitations as may be specified in such notification or, as the case may be,  order. For More Details visit FBR or our blogs .

What is the penalty for non-compliance with a notice?

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A person who, without reasonable excuse, fails to comply with any notice served on the person under section 116 or 176 shall be liable for a penalty equal to: In the case of the first failure, two thousand rupees; In the case of a second failure, five thousand rupees; or In the case of a third and subsequent failure, ten thousand rupees. Where a person liable for a penalty under sub-section (1) has an assessed tax liability for the tax year in which the failure occurred of less than twenty thousand rupees, the amount of the penalty imposed under subsection (1) shall be reduced by seventy-five percent. For More Details visit FBR also view our other blog. Moreover, if you want to read latest updates, please visit our news page.

What are the penalties for failure to give notice and obstruction?

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  Where a  person fails to give notice of the discontinuance of the person‘s business as required under section 117, the Commissioner may impose a penalty on the person not exceeding the amount of tax payable by the person for the tax year in which the business was discontinued. Where a person fails to give notice of the person‘s appointment as liquidator as required under section 141, the Commissioner may impose a penalty on the person not exceeding ten thousand rupees. Penalty  for  obstruction : Where any person obstructs the  Commissioner or a  taxation officer in the discharge of the Commissioner or officer‘s functions under this Ordinance, the Commissioner may impose a penalty on the person not exceeding ten thousand rupees. For More Details visit FBR also view our other blogs Suggested Blog: How to become Filer

What is the penalty for making false or misleading statements?

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Where a person: Makes a statement to an income tax authority that is false or misleading in a material particular or omits from a statement made to an income tax authority any matter or thing without which the statement is false or misleading in a material particular; and The tax liability (including the liability for advance tax under section 147) of the person computed on the basis of the statement is less than it would have been if the statement had not been false or misleading (the difference hereinafter referred to as the ―tax shortfall the person shall be liable for a penalty equal to where the statement or omission was made knowingly or recklessly, two hundred percent of the tax shortfall; or in any other case (other than where sub-section (2) applies), twenty- five percent of the tax shortfall. In the case of an assessment order under section 120, no penalty shall be imposed under subsection (1) to the extent to which the tax shortfall arose as a r

Is NTN number same as CNIC number?

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No, CNIC and NTN numbers are two different numbers. The CNIC is a 13 digit number consist of 3 parts first part contain five numbers which gives different details of the person location while the second part is his/her family number and the last part represents your gender group. But NTN number is totally different this number has two parts and it consist of 8 digits. NTN number is generated in sequence. CNIC and NTN were different numbers but FBR has announced that from the fiscal year 2018-19 both will be same. The announcement to put in CNIC as NTN number is implemented from last fiscal year 2018-19, the Federal Board of Revenue (FBR) all sets to utilize the data of companies for broadening of tax base, it is learnt. Federal Board of Revenue has said that NADRA issued CNIC numbers will become NTN ( National Tax Number ) for all Pakistanis and anyone submitting tax returns can use his/her CNIC in place of NTN numbers that were issued by the Fbr. Recommend

What if I miss the Due Date of filing tax?

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In case the taxpayer misses the deadline to file his taxes, he will file a late tax return. Belated tax returns will be filed either by the tip of the relevant assessment year or before the completion of the assessment, whichever is earlier. For the current fiscal year, a belated tax return will be filed any time before thirty-first March 2020 if the assessee fails to file his taxes on or before 31st August 2019. Moreover, If you have missed the due date to file your return, you can still file it before 31 Dec 2019 by paying a fee of Rs 5,000. If you are filing after 31 December 2019, you will have to pay a fee of Rs 10,000. Also to note that the time limit for filing a tax return late for FY 2019-20 expires on 31 August 2019. Filing Income tax returns on time you will get a lot of benefits Filing your ITR on time can benefit you in the following ways: Easy Loan Approval from Banks Claim Tax Refund from Govt. Income & Address Proof Quick Visa

What is Filer and Non-filer

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Difference between Filer and Non-filer   Filer The person whose name is appearing in the list as an “Active Tax Payer” issued by the Federal Board of Revenue shall b considered as a filer; also a person holding a “Taxpayers’ Card”. Filer has a lot of benefits on income tax returns.   Non-Filer   The person whose name is not appearing in the list as an “Active Tax Payer” issued by the Federal Board of Revenue shall b considered as a non-filer. Moreover, non filer pays more withholding taxes under Income Tax Ordinance 2001 through Finance Bill (2014-15). Also Check: How to become Filer .

How to become Filer

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Obtain an NTN Number (National Tax Number) this number is mandatory to become a tax payer in Pakistan. You can easily obtain an NTN number by visiting a your legal adviser or through online process by visiting FBR website and making a request. Go to the site and then go to the Registration for Unregistered Person tab. It is a simple form. After filling it, NTN generates. NTN number takes a few hours and you will have a unique NTN number at your disposal but now government is working on converting CNIC as a NTN number. IRIS Registration.  Go to federal board of Revenue website and go to the IRIS tab. From there register yourself for e-enrollment. Also read: Filer and Non-filer