KITBA proposes several amendments to Ordinances

In a move to resolve the problems being faced by the taxpayers after the promulgation of amended ordinances 2011, the Karachi Income Tax Bar Association (KITBA) has demanded of the Federal Board of Revenue to make these ordinances effective from March 16, 2011.
In a letter sent to the authorities concerned in FBR, the KITBA has demanded them to make these ordinances applicable from March 16, 2011 as they were promulgated on March 15, 2011 at midnight after working hours.
The bar has also proposed several amendments through the letter, which are as follow:
-- The word "Amendment of Section 2" should be deleted in order to clear insertion of newly introduced section of 4-A after section 4 of the Income Tax Ordinance, 2001, as against the understanding of insertion in section 2 of the Ordinance.
-- The word "This Ordinance" in para 2 of the newly introduced section 4-A should be read as "Amendment Ordinance, 2011" as the same appears third time in line no. 4 hence the notification in this regard should be issued.
The association also seeks clarification for the method of calculating flood surcharge in the following cases:
-- Any income received in advance for the year 2012 during the period from March 15, 2011 to June 30, 2011.
--Where tax year is a calendar year ie, January to December, the prescribed period of the Amended Ordinance ie March 15, 2011 to June 30, 2011 falls in the tax year 2012. The letter also proposed the authority to exclude the stock purchased prior to March 15, 2011 for the applicability of Sales Tax Amendment Ordinance, 2011.
It said the amendment made in SRO 509 through SRO 231 and 274 clearly provided benefits to the manufacture, manufacture cum exporter or exporter. Therefore, the words "for use on utilisation in goods meant for export" should be deleted and any other procedure for the identification of the aforesaid person should be prescribed. Moreover, it said the category of indirect exporter should be added in the Sales Tax Act for clear benefit provided under the Sales Tax Amendment Ordinance, 2011.