07262016Tue
Last update: Tue, 26 Jul 2016 09am

Taxation: Pakistan

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Directorate General Customs Valuation Karachi has revised customs values of dozens of imported items under the massive exercise to develop valuation database where declarations of importers do not correctly reflect values of the items traded in the international market. In this regard, the Federal Board of Revenue (FBR) has received new values of a number of items during the ongoing valuation exercise.
The Federal Board of Revenue (FBR) has transferred and posted Syed Zulfiqar Ali Shah Kazmi, Collector, Collectorate of Customs (Appeals), Islamabad as Member Technical Customs Appellate Tribunal, Bench-I, Karachi.
Dismissing 30 identical petitions challenging vires of Section 3 (8) of the Sales Tax Act 1990 as incorporated by the Ordinance of 2014, the Supreme Court directed CNG station owners to approach the Federal Board of Revenue (FBR) for refund of input tax, if available to them. A three-member bench led by Justice Azmat Saeed Sheikh, comprising Justice Mushir Alam and Justice Dost Muhammad Khan had reserved the judgement on June 2, 2016 in response to CNG stations'' appeals filed against Sindh High Court judgement of October 06, 2015 in the matter.
The Federal Board of Revenue (FBR) has proposed mandatory electronic filing of income tax return and withholding statement by an individual declaring taxable income of Rs 1 million and more or turnover or receipts exceeding Rs 50 million from July 1, 2016 onwards. Through an SRO 497(I)/2016 issued here on Friday, the FBR has proposed amendment in Income Tax Rules, 2002. The draft rules have been circulated by the FBR for comments which would be taken into consideration by the FBR after seven days of its publication in the official gazette.
The formula used for calculation of tax on domestic and commercial electricity bills has revealed that sales tax was added to the electricity charges prior to working out income tax; or in other words income tax is worked out on the basis of electricity charges plus sales tax. A Business Recorder team undertook a detailed analysis of the tax components in electricity bills and determined that the percentage of tax declines as the total bill rises in the case of commercial/industrial sector.
The Federal Board of Revenue (FBR) has renamed Regional Tax Office (RTO) Karachi and RTO Lahore as Corporate RTO Karachi and Corporate RTO Lahore with immediate effect. According to a notification issued by the FBR here on Friday, RTO Karachi has been renamed as Corporate RTO Karachi and RTO Lahore has been renamed as Corporate RTO Lahore. The RTO-II Karachi and RTO-II Lahore will hold the administrative authority, notification added.
The Federal Board of Revenue (FBR) has ordered recovery of short payment of sales tax from units which failed to withhold input tax of the supplier at the time of purchase of goods under section 11 (2) of the Sales Tax Act, 1990. In this regard, the FBR has issued instructions to the field formations here on Friday about legal powers to issue show cause notice for recovery of short payment of sales tax from defaulted units.