Kbs zain and Co

05/08/2024

30/09/2022

31st October announced date extended.

14/08/2022

There is no power on earth that can undo Pakistan.
Muhammad Ali Jinnah..

Happy Independence Day.

04/08/2022

Self-believe and hard work always earn you success.

Happy birthday to our Manager Sales Tax Department Mr. Taha Khan.

خود اعتمادی اور محنت ہمیشہ آپ کو کامیابی دلاتی ہے۔

ہمارے منیجر سیلز ٹیکس ڈیپارٹمنٹ جناب طحہ خان کو سالگرہ مبارک

14/06/2022

In the budget for the next financial year, it has been proposed to give the Federal Board of Revenue (FBR) powers that in addition to disconnecting electricity and gas connections of consumers who do not file income tax returns, will also authorise it to deactivate mobile phone SIMs.

The federal government's Finance Bill 2022-23 empowers FBR to ensure annual income tax returns under Section 114B of the Income Tax Act and take action against active taxpayers who are not submitting returns as required under the law. “The FBR can take action against those people who are obliged to submit income tax returns but are not doing so.”

According to the Income Tax General Order issued under Sub-section 2 of Section 42 of the Income Tax Ordinance, the FBR will disable mobile phones or SIMs of those users who do not file returns. In addition, electricity and gas connections will also be disconnected.

Similarly, in the Income Tax General Order, the board or the commissioner having jurisdiction may order restoration of the mobile phone, cellphone SIMs as well as electricity and gas connections if he is satisfied that the annual income tax return has been submitted.

In addition, no person shall be included in the general order under Sub-section (1) unless the following conditions have been fulfilled, i.e. notices have been issued under Sub-section (114) (a).

According to the said section of the Income Tax Ordinance, if the date of compliance has passed and the person has not filed the return, the law will come into force.

“Further action against anyone cannot be stopped under this law.”

The finance bill will be presented to the National Assembly for approval and after that it will be implemented from the next financial year – starting July 1, 2022.

10/06/2022

Silent features of the Budget 2023:
DIRECT TAX:
•5 Years tax holiday to film makers.

• Tax rebate for five years to New cinemas, production houses, film museums and 10 years for film and drama export.

•Income Tax exemption to Cinemas and producers

• Exemption of 8% withholding tax to film producers and distributors
• 0% sales tax and customs duty on import of film equipment

• Taxable salary threshold increased from 600,000 to 1,200,000
•Taxable threshold for AOPs and business individuals increased from 400,000 to 600,000

• Tax rate on income from behboob certificates reduced from 10% to 5%

• Fixed tax introduced for small retailers ranging from Rs. 3000 to 10,000 which will be collected through Electricity bills which will be full and final tax liability.

• Initial depreciation rate increased from 50% to 100%

• Tax collected at import stage made adjustable.

• Advance tax will be 2% of value in case of electric vehicles

• Advance tax for non-filers will from 100% to 200%

• Windfall gain tax on banking companies from 39% to 42%

• Any person who is not resident in any country will be resident in Pakistan

•Advance tax of 1% onforeign transactions through debit/credit/prepaid card. 2% for non filers.

INDIRECT TAX:
•Sales tax exemption on import and supply of solar panels
•0% sales tax on agricultural machinery and seeds

•Sales tax exemption on electricity and local supplies to Non-profit hospitals having 50 beds or more
Revamped a taxpayer friendly ADRC for tax demands of 100 million or more.

•0% Customs duty on agricultural related machinery.

•Capital gain tax structure change from 4 years holding period to 6 years holding period.

•Advance tax increased form 1% to 2% and 5% for non-filers

•Rental income on second property having value more than Rs. 25,000,000 will be deemed to be 5% of FMV of property

•2% additional tax on persons having incomes 300 million or more

•Advance tax increased on cars of more than 1600cc.

•Customs and regulatory duties on approximately 400 tariff headings on industrial and manufacturing sector have been rationalized.

•Regulatory duties imposed to protect indigenous industries.
Tariff rationalized on synthetic yarn.

•More than 30 active pharmaceuticals ingredients have been exempted from Customs duty.

KBS Zain & Co
Advocates Tax Lawyers & Corporate Consultant’s

Regards
Sheikh Zain Bashir
Advocate High Court & Certified Tax Practitioner .

20/05/2022

Appellant Tribubal Inland revenue filing fee, coping fee and Inspection fee shell be deposited into Ministry of Law and justice head (C02604) with immediate effect