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Showing posts from March, 2020

Coronavirus hits Pakistan’s already-strained economy, and its most vulnerable

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These are rare occasions. The global economy, including Pakistan, has already plummeted. A recent recession-fueled economy that has seen the country return to the International Monetary Fund (IMF) by securing another bail has received unprecedented strikes. In all the major economic crises in Pakistan – and there have been few of them – the wheels of the informal economy have continued. Today, the informal sector will lose a lot, especially the tens of millions of workers who rely on this funded sector to give them the little money they need to meet their daily needs. In many ways, it was the anxiety expected by the weakened social classes that led Prime Minister Imran Khan to become frustrated at the closing of the entire country. The human and economic costs of the process will not be calculated yet, but one must note that it was the sensitivity of the vulnerable and not the global anti-science view that caused a delay in the response by the Pakistani g

How to Register for Customs

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The person should get to register himself with Federal Board of Revenue first in order to get access of online Custom’s portal ‘ WeBOC ’. APPLICATION FORM FOR REGISTRATION / WeBOC USER ID ISSUANCE (To be submitted in the User ID Section of Collectorate having jurisdiction) Th e WeBOC form can be downloaded from: external user registration form Registration Procedure : Submit the application to the Deputy / Assistant Collector of the BOC User-ID Section, with supporting / required documentation Appearance of the applicant before the Deputy / Collector User Class Section ID via the original CNIC. The process of taking a digital photo and thumbing of the applicant for his or her appearance. Visiting business premises (wherever required) Acceptance / Refusal of request. User ID creation when the request is received Login-ID Issue and Automatic Sending of Password generated by Computer to Applicant by Email. For more information, please  visit

Custom Basics

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Prior to the registration and execution of various custom processes, it is recommended that people familiarize themselves with all the basic concepts related to these processes. A basic understanding of these concepts would not only ensure that tasks are performed easily but also in a limited way. Functions of Pakistan Customs : Pakistan Customs must ensure that the following works are done in a lawful manner. Import & Export of legitimate cargo Trade Facilitation Trade Regulator Preventive (Control of contraband Goods) Revenue Collection Basic terminology ACCOUNT: Account means all the records, books, correspondence, bank and financial statements ACT: It means Pakistan’s customs ACT. 1969 (IV of 1969) COLLECTOR: It means “Collector”, “Additional Collector”, “Deputy Collector” and “Assistant Collector”, respectively, means the Customer Collector, Additional Customer Collector, Customs Collector and Customs Collector appointed un

Sales Tax due dates

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Tax filer according to their respective categories need to file their tax return in monthly, quarterly and annual return format. Monthly Return Under normal procedure the subscriber must file a monthly return with Annexure C on the 10th and payment on the 15th and return of emails on the 18th of the month following the period in which the transaction is made, to designated branches of the National Bank of Pakistan. In the event of specific phases as outlined below The process is designed to file monthly and quarterly file returns. Quarterly Return Taxpayers who fall exclusively in the CNG category must file a return on a quarterly basis. Annual Return A manufacturer must file an annual sales tax return by September 30 of the next fiscal year. Calculate your tax from Tax Calculator now. For more information, please visit our website or FBR official website . Also Check: Check FBR Filer Status Check NTN Online How to become Taxpayer in

SALES TAX REFUND

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If the filing tax payable by a registrant on a tax-exempt transaction made exceeds the amount of tax due to local non-tax provision or export made during that tax period, the estimated value of the input tax shall be returned to the registrant not later than forty-five days of filing a claim for tax refund and thus subject to the conditions. prescribed by the board, by notice in the official Gazette. PERSONS THAT CAN CLAIM REFUND : The following registered persons may claim the refund of sales tax paid as input tax: Registered manufacturer- cum-exporters and commercial exporters rate the whole or a portion of their supply in accordance with Section 4 of the Act. Registered persons who receive taxable inputs in the manufacture of goods that are taxable at the rate of zero per cent of the law or in the notification issued there. People who are registered to pay back an additional input tax that cannot be consumed within three months. Registered persons receiving taxable inputs

Taxpayer Authorized Representatives

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APPOINTING AN AUTHORIZED REPRESENTATIVE: In order to appoint this authorized attorney, the taxpayer must produce a letter of approval, duly signed by the proprietor, partner or director of the company or, business, to be submitted by an authorized representative before the judicial or appellate tribunal authority. ELIGIBLE PERSONS: The following persons may authorize the taxpayer to refer the taxpayer before the judicial authority and the appellate tribunal ·      The taxpayer is a full-time employer, at least with a bachelor’s degree. ·      A practicing lawyer ·      The person who holds the bachelor or ·      Masters degree in commerce. ·      The retired officer of the department of sales tax, customs or federal excise does not provide at least 10 years of satisfactory service beyond the post of the assistant collector. ·      Accountant. INELIGIBLE PERSONS: ·      A person convicted of a criminal offense. ·      A person gets forced out or retired from work.

Govt faces pressure to reverse real estate taxes

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ISLAMABAD: The government has come under increasing pressure from influential tax reforms, which it launched nine months ago to increase its tangible contribution from the sector, and announced the initiative as part of a global anti-economic assistance package. the coronavirus epidemic. The government is discussing a proposal to not pay the 20% capital gains tax (CGT) if the deal is sold after keeping it 1,095 days instead of the 2,921-day period, according to Federal Board of Revenue (FBR) sources. Currently, the tax is exempted if the property is held for more than eight years intended to alleviate speculative practices. Opposition groups want the government to reduce the period to just three years. If immovable property is sold before an eight-year period, it is less than 20% of tax revenue. Key players in the financial sector, including some members of the cabinet, have been visiting the FBR headquarters for relief. They had also pressured the

FEDERAL EXCISE DUTY (FED) BASICS

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A basic understanding of Federal Excise Duty (FED) concepts would not only ensure that the tasks are performed easily but also in the prescribed manner. ADJUSTMENT deduction of amount of duty paid on goods used in the manufacture or production of other goods from the amount of duty payable on such other goods in the prescribed manner DISTRIBUTOR a person appointed by a manufacturer in or for a specified area to purchase goods from him for sale to a wholesale dealer in that area; DUE DATE in relation to furnishing a return under section 4, means the 15th day of the month following the end of the month, or such other date as the Board may, by notification in the official Gazette, specify and different dates may be specified for furnishing of different parts or annexures of the return. DUTIABLE GOODS all excisable goods specified in the First Schedule except those which are exempt under section 16 of the Act; DUTIABLE SUPPLY a supply of dutiable goods made by a manuf

Persons Eligible to Appeal for Income Tax

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Any person who is not satisfied with any order passed by the Commissioner / Officer Inland Revenue has the right to appeal. If man, man himself; in the case of a Personal Organization (AOP), any partner or member of the organization; and in the case of a company the chief executive officer. In the case of the deceased, represent the deceased legally; and in the case of a legally disabled person or a non-abusive person, his or her “representative”. Also Check: How to become filer How to check FBR Filer Status Who is filer and non-filer?

REGULATION ON ARTICLES OR GOODS

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Articles or goods delivered at a commercial value are only issued at a payment equal to 30% of the value of the goods or goods or in addition to the taxable service. COMMERCIAL QUANTITY Prima facie for business or money gain is the number of imported goods and not for personal use or gift. PROHIBITED ARTICLES OR GOODS Anything that cannot be imported or exported from Pakistan is prohibited or prohibited under any circumstances to protect society, health and environment. RESTRICTED ARTICLES OR GOODS Some certificates, conditions, licenses, permits or restrictions may be imported or exported from Pakistan. Some commonly banned and restricted articles or goods that cannot be imported or exported from Pakistan are listed in the Luggage Regulations Brochure. Also Check: How to become filer How to check FBR Filer Status Who is filer and non-filer?

Persons to be Registered for Sales Tax

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1. All importers 2. All vendors (including retailers) and distributors 3. Manufacturers who fall into the cottage industry. Home Sector means the annual manufacturer of any sales tax deductions made during any of the last twelve months ending any tax period does not exceed 10 million rupees or his annual expenditure (electricity, gas and telephone) over the last 12 months ends any period tax period does not exceed eight hundred rupees;} 4. Merchants (Tier-1 Merchants means: 5. A retailer acting as a supplier to a national or international mall; 6. A salesman working in a shopping mall with a boutique, a plaza or a center, without any outlets; 7. The seller whose accumulated electricity accumulated during twelve consecutive months exceeds Rupees six hundred thousand; and 8. The seller-cum-seller, involved in the bulk import and distribution of consumer goods for sale through retailers and general consumer auctions;) 9. A person r

Income Tax Appeal

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Right to Appeal : Many complaints arise as a result of disagreements between taxpayers and taxpayers (the Inland Treasury) regarding the deduction of income and taxes owed and the overpayment of taxes, penalties, etc. To resolve such disputes, the law sets out a procedure, which gives taxpayers the right to file a complaint before the Commissioner (cases) and if they are not satisfied, another right to file a complaint before the state Court of Appeals and Supreme Court. Persons Eligible to Appeal : Any person who is not satisfied with any order passed by the Commissioner / Officer Inland Revenue has the right to appeal. If man, man himself; in the case of a Personal Organization (AOP), any partner or member of the organization; and in the case of a company the chief executive officer. In the case of the deceased, represent the deceased legally; and in the case of a legally disabled person or a non-abusive person, his or her “representative”.

How to change personal details for filing the income tax return

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A person may change his or her registration information to complete Income-tax Return in at least three (3) ways. 1. To change information about Iris, one can change / update information by logging in to Iris. The following information can be updated by the person on the Registration Form 181 (filed for conversion) Income Tax: Mobile number Email Your Address / Residence Business Address Addition of Business Branches Legal Agent / s 87 of the Income-tax Ordinance 2001 Bank Account 2. To change information using the Federal Board of Revenue (FBR) helpline, one can change and update information through the FBR telephone service by telephone or email. The following information can be updated by the helpline: Name Birthday Gender Disability status Senior Citizen Status 3. Changing Information by Visiting the Regional Office (RTO) For changes in registration in respect of the following issues, a person will need to visit their appropr

The cost of being Non-filer

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Unfortunately, Pakistan has the lowest ratio of income tax payers among many other countries. As only 1% population of Pakistan is a tax payer as recent statistics of Federal Board of Revenue show that only 1.42 million people are paying their taxes. The federal government is trying to increase the tax payer ratio in the annual budget since 2013. In order to convert non-filer to  filer , Finance Act 2014 is introduced to  penalize the non-filers  by compelling them to become tax payers. A Filer is the person who files his/her income tax return annually. As per Section 2(23), a filers is one whose name appears in the Active Tax Payer list (ATL) issue by FBR. Tax law regards the taxation and distribution of Tax Return as two separate activities – a concept that is not generally accepted by most people. Paying or deducting a tax does not remove a person from the official and prescribed tax return filing system, so one cannot be a file unless one person submits their Income Retur

FBR launched the new ATL for Tax Year 2019

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FBR launched the new ATL for Tax Year 2019 enabling taxpayers to avail reduced rate of withholding tax till March 2021. According to the new ATL around 2.53 million persons and companies filed their returns till February 29, 2020. The FBR issues the new ATL on March 01 every year on the basis of income tax returns filed for the preceding tax year. The income tax return filing has increased by over 58 percent when compared with 1.6 million returns filed as per the ATL issued on March 01, 2019. Recommended Blogs:    How to become filer How Overseas Pakistani can become tax filer How to apply for NTN online