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ISLAMABAD: Federal Board of Revenue (FBR) on Friday extended date for retailers to integrate their Point of Sale (POS) up to August 31, 2020. The last date for integrating the POS for Tier-1 retailers was June 30, 2020. The FBR said that only those retailers can integrate their POS by August 31 who submit their intention to RTOs/LTUs by August 20, 2020. FBR sources said that the decision had been taken due to lockdown in the many parts of the country in order to prevent spread of coronavirus the business activities had become stand still. They said that big outlets and shopping plazas are observing closure during the lockdown and many of those big retailers would not able to make compliance. The deadline was expired on December 15, 2019 which was given by the FBR to tier-1 retailers to integrate their POSs with the FBR online system. However, the date was extended in order to give opportunity to big retailers to make compliance. All tier-1 retailers are required to integra...

Presently, expenses incurred to the extent of 6 percent of rent chargeable wholly and exclusively for deriving rent are admissible as deduction against rental income. The Bill proposed to reduce the limit from 6 percent to 2 percent. The experts said that further reducing such limit would deprive a taxpayer for claiming a legitimate expense incurred solely for deriving taxable income and would ultimately lead to higher tax payable by the taxpayer. “It may encourage taxpayers to under-report their taxable income on the grounds that their legitimate expenses are disallowed,” experts at Deloitte Yousuf Adil Chartered Accountants said. Presently, income from property derived by an individual or an Association of Persons is subject to tax at the specified slab rates and treated as a separate block of income. However, individuals or AOPs whose income from property exceeds Rs 4 million per annum can opt to claim deductions under section 15A of the Ordinance and pay tax at normal rate...

According to budget commentary issued by PwC A F Ferguson, as part of reforms for ease of doing business, the government has proposed to withdraw following withholding tax provisions, which in government’s view were not generating enough revenues: 01. Section 148A – Tax on local purchase of cooking oil or vegetable ghee by certain persons Two percent tax was chargeable on the purchase of locally produced edible oil by the manufacturers of cooking oil or vegetable ghee. 02. Section 156B – Withdrawal of balance under Pension Fund A pension fund manager making payment from individual pension accounts, maintained under any approved Pension Fund, was required to deduct tax at the average rate of tax as calculated in section 12, from the amount so withdrawn by the pensioner before or after his retirement. 03. Section 235B – Tax on steel melters and composite units Tax under this section was required to be collected from every steel melter, and composite steel units, registered f...

ISLAMABAD: Federal Board of Revenue (FBR) has re-constituted committee for grant of license for tracking transit and transshipment cargo. The FBR on Wednesday issued SRO 542(I)/2020 dated June 08, 2020 to amend Tracking and Monitoring of Cargo Rules, 2012 The reconstitution of committee shall comprise of Director General of Transit Trade (Chairman), Director Transit Trade (I-IQs), Karachi, Director Transit Trade (Peshawar), Director Transit Trade (Quetta), Director Reforms and Automation (Karachi), Collectors of Customs (Enforcement and Compliance, Karachi), (Appraisement and Facilitation, Port Muhammad Bin Qasim, Karachi), (Appraisement and Facilitation-East, Karachi), (Appraisement and Facilitation-West), Karachi, and Director of Intelligence and Investigation, FBR, Karachi or any other authority designated by the FBR Headquarter. As per amendment the project director shall be Director (HQs), Directorate General of Transit Trade. Previously, the project director was Collector,...

KARACHI: Tax practitioners have recommended that the selection of income tax returns for audit should be rest only with the Federal Board of Revenue (FBR) and powers of commissioner in this regard should be withdrawn. “The power to select the return of income may rest only with the FBR under Section 214C of the Ordinance,” according to proposals for budget 2020/2021 submitted by Pakistan Tax Bar Association (PTBA). There is a dire need to explain the two terms in section 122(5A) of the Ordinance so that the taxpayers are not harassed in the garb of returns being ‘erroneous’ and ‘prejudicial to the interest of revenue’. The error of law or fact must be floating on the surface of the available record. The time limit for amendment of assessment under section 122(4) of the Ordinance, 2001 be reduced to two years. The commissioner once amend the original order should not have the powers amend the laws as many time as decided by him. Moreover, the combined audit of income tax,...

KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Wednesday said it will oppose any move to grant powers to tax officials regarding opening cases of past 10 years. KCCI President Agha Shahab Ahmed Khan in a statement expressed serious concern on reports that officials of Inland Revenue are seeking more powers to probe and reopen cases of taxpayers for as long as past 10 years. President KCCI pointed out that KCCI has contested for years to curtail discretionary powers of tax officials, which are a source of harassment to the taxpayers and have prevented a majority of business persons to register in the tax regime. Such powers are a deterrent to broadening of tax base which remains around 1 percent despite all kinds of coercive tactics. He said that contrary to stated goal of reforms in Federal Board of Revenue (FBR) and taxation regime, the government is being misled into taking measures in the Budget 2020-2021 which will further discourage documentation and result...

Every person in the above-mentioned categories and who does tax-exempt activities in Pakistan is legally obliged to obtain sales tax registration. However, for tax assets granted in any tax during the last 12 months ending any tax does not exceed 10 million rupees or those used annually (telephones, gas and electricity) in the last 12 months ending any tax. do not exceed Rs. 800,000. How Can You Pay Your Tax Return ? According to the law every subscriber must submit a no later than 15 monthly installment in respect of sales made in the previous month. Every registered person is obliged to submit the forms electronically; in such case the complaint should be made by the 15th and the return may be filed on the e-portal conducted by the Federal Board of Revenue (FBR) on the 18th. Recommended Blogs How to become filer How to check NTN number How to check FBR filer status

Pakistan has one of the lowest rates of tax-on GDP in the world. For the uninitiated, the tax-to-GDP ratio is used to assess country development year after year. They claim that the higher the Gross Domestic Product (GDP) of a country, the higher the amount of tax revenues the government can get by the same as the number of goods and services exported has increased. With those exciting numbers and information out of the way, that's why employed / paid people should care about filling their income tax now more than ever. You should have heard about bank transactions being very drawn to non-filers. As it happens, even the actual interbank transfers are charged a new excise tax (WHT) under Section 236P of the Income tax Ordinance 2001 to non-filers. All bank operations will be taxed at 0.3% WHT unless they file their income tax returns by November 30th 2016. You are also charged more when you buy cars or other property. And if your WHT amount is greater than your applicable taxes, ...

Transfer Your Loss If you file a return within a reasonable time, you will be able to continue the loss until the following years, which can be used to save on the next. In terms of income tax law, people are not allowed to perpetuate the loss of income and set aside income if the tax revenue is not paid by the due date. Therefore, it is important to file your income tax return during the claim for lost income in the coming years. Simple tax returns, will help people, when they have to apply for a car loan or Home Loan. All major banks can request a copy of the taxes. Tax Refund If you have a valid return from the Treasury, you will need to submit the files, otherwise you will have to stop the return. The income and any tax return address that can be used is proof of your income and address. Immediate Visa Request An international and international agency is requesting copies of your previous tax returns to process your visa application. Avoid Penalty If you are asked to submit your...

All citizens, people, and businesses in Pakistan with an annual income of R1 million. 400,000 and more to fill out their tax returns every year is compulsory. You must submit your form before the FBR (Federal Bureau of Revenue) announced deadline, after which, your name will be added to the payer list, known as the active payer list (ATL). ATL allows you to get many benefits such as paying lower taxes on financial transactions such as bank transactions, sales or purchases of goods and services, etc. People who paid their tax deduction automatically become a filer or have a file status. You can only become a filer when you file your tax return. Recommended: How to become filer  How to check NTN number

·          Low rates of tax deduction at source by banks on all profits and withdrawals ·       Withholding tax deduction (tax deducted from your income and benefits) when you register and transfer vehicles ·          Lower tax rate on buying and selling goods ·          Low withholding tax rate on profits from security transactions ·          The tax expense on the dividend will decrease ·          Low rate of tax avoidance on tax bond winnings ·          It allows you to recover the overpayment tax deductible For more information, please v isit website . Recommended blogs for you: How to become filer How to check FBR Filer Status How to Check NTN number Cost of being Non-filer

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. ·   ...

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...

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...

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...