Kbs Zain & Co Associates K.B.S & Co Uk

31/10/2016

IRIS is not working properly. It is very difficult for consultants to file returns alongwith wealth statement within time limit.

07/10/2016

Dear Sir,
Lahore High Court adjourned audit cases for Tax Year 2014 for 10-10-2016.

04/09/2016

SLAMABAD: The Federal Board of Revenue (FBR) has filed 253 cases regarding prosecution for tax crimes during July 01, 2015 to June 30, 2016, according to official documents.
The FBR shared the information regarding prosecution for tax crimes during the last fiscal year.
It said that number of convictions out of total cases filed were 23 while in 20 cases the court ordered custodial sentences.
The court has fined in 21 cases out of total cases in tax crimes.

03/09/2016

KARACHI: The Sindh Revenue Board (SRB) has allowed sales tax exemption on services rendered to provincial-funded projects.

In a notification issued on Friday, the Sindh Revenue Board exempted the tax levied on the services that are directly received or procured by departments of the Sindh government, whichare funded out of the Annual Development Program (ADP).

The sales tax has been exempted on the services included persons engaged in contractual ex*****on of work or furnishing supplies; contractor of building (including water supply, gas supply and sanitary works), electrical and mechanical works (including air-conditioning), multi-disciplinary works (including turn-key projects) and similar other works; technical, scientific and engineering consultants; software or IT based system development consultants; and construction services.

The provincial revenue body imposed certain conditions on the service providers in order to avail of the exemption. The Sindh Revenue Board said that the service provider must be registered with the provicial body and issue tax invoice as prescribed in sales tax on services laws.

Further, the service provider must file monthly return electronically, the notification said. The Sindh Revenue Board also made the provincial departments responsible for e-filing monthly statement and providing details of service providers of both registered and un-registered. The provincial revenue body said that while making payment to the service provider for the value of service received under the benefits of exemption, the secretary of the respective department should issue a certificate.

03/09/2016

Karachi: The Federal Board of Revenue (FBR) has imposed a 25 percent tax on the return on investments in Sukuks by corporate entities, a notification said on Friday.

A new Section 5AA was introduced into the Income Tax Ordinance, 2001 for taxing the return on Sukuk investments by corporations, individuals and association of persons (AOPs).

“A corporate entity shall pay 25 percent. The rate of tax is 12.5 percent in case a Sukuk-holder is an individual or an association of person (AOP), if the return on investment is more than one million rupees. For less than one million rupees, the tax rate is 10 percent for individuals and association of persons,” the notification said.

“The tax would be imposed on a person who receives a return on investment in Sukuks thatshall be computed by applying the relevant rate of tax to the gross amount of the return on investment in Sukuks.”

In addition, the withholding tax rate is 15 percent for corporate entities, 12.5 percent for individual and AOPs for over one million rupees of investment and 10 percent on less than one million rupees of investment.

Non-filers are to pay 17.5 percent as withholding tax. The Federal Board of Revenue said the Sukuk companies are to collect the withholding tax at the time of making payment of a return on investment.

03/09/2016

03/09/2016

Tax update
Tax Laws (Amendment) Ordinance, 2016 has been issued which has allowed Provincial Sales Tax on Services as "Input Tax" for Federal Sales Tax Returns from July 1, 2016.

26/08/2016

Federal Board of Revenue on Thursday asked salaried tax payers to file their income tax returns this year by August 31, a deadline which has only three working days and set to expire in next five days.

The revenue body issued income returns forms for the tax year 2016 for individuals and Association of Persons (AOPs). Tax officials said the form was issued before the cut-off date. The FBR, on August 11, issued draft return form and also invited stakeholders comment. It said “the draft will be taken into consideration by the FBR after fifteen days of its publication.”

According to the FBR’s issued SRO 792(I)/2015 the deadline for the filing of income tax return for salaried persons is August 31. While for the AOPs and companies, falling in special account year is September 30 and for corporate entities the last date is December 31.

Tax experts feared many people would fail to file their income tax return on the short deadline set by the revenue authorities, “Especially the salaried persons would not be able to file their tax liabilities due to certain requirements in the returns,” said a tax expert.

“A salary person is required to have withholding statement of salary deduction from his employer to determine and insert taxable amount.” He said certain withholding statements, which are adjustable against the final tax liabilities, including deduction at mobile phone bills, purchase of car, banking transactions etc are time consuming. “Further, every salaried person, having income above Rs400,000 is required to file an annual return electronically, along with a wealth statement.”

Salaried persons were around 30-40 percent of total return filers in the country. In actual, the FBR is giving them only three days in case they hired third party help as Saturday and Sunday were closed, another expert said.

As per FBR, a person filing the return for the first time should reconcile a wealth statement for the previous year. Tax experts said the FBR should allow at least two months from issuance of return form for filing return.

Muhammad Zubair, former president, Karachi Tax Bar Association (KTBA), said it was impossible for a salaried person to file his return by the given deadline, and the FBR should consider extending the date.

He further said that the persons under Final Tax Regime (FTR) were also required to file their return by August 31. “There are calculation problems for FTR cases on the FBR portal,” Zubair said.

25/08/2016

KARACHI: The Federal Board of Revenue (FBR) has updated advance tax rates to be collected by educational institutions on fee paid during fiscal year 2016/2017.
Collection of advance tax by educational institutions under Section 236I of Income Tax Ordinance, 2001.
Sub-Section (1): There shall be collected advance tax at the rate of five percent on the amount of fee paid to an educational institution.
Sub-Section (2): The person preparing fee voucher or challan shall charge advance tax under sub-section (1) in the manner the fee is charged.
Sub-Section (3): Advance tax under this section shall not be collected from a person where annual fee does not exceed two hundred thousand rupees.
Sub-Section (4): The term ‘fee’ includes, tuition fee and all charges received by the educational institution, by whatever name called, excluding the amount which is refundable.
Sub-Section (5): Tax collected under this section shall be adjustable against the tax liability of either of the parents or guardian making payment of the fee.
Sub-Section (6): Advance tax under this section shall not be collected from a person who is a non-resident and,—
(i) furnishes copy of passport as an evidence to the educational institution that during previous tax year, his stay in Pakistan was less than one hundred eighty-three days;
(ii) furnishes a certificate that he has no Pakistan-source income; and
(iii) the fee is remitted directly from abroad through normal banking channels to the bank account of the educational institution.

25/08/2016

KARACHI: The Federal Board of Revenue (FBR) has updated different rates of advance tax for filers and non-filers distributors, dealers and wholesalers of manufacturers or commercial importers during 2016/2017.
Advance tax on sales to distributors, dealers and wholesalers under Section 236G of Income Tax Ordinance, 2001.
Sub-Section (1): Every manufacturer or commercial importer of electronics, sugar, cement, iron and steel products, fertilizer, motorcycles, pesticides, ci******es, glass, textile, beverages, paint or foam sector, at the time of sale to distributors, dealers and wholesalers, shall collect advance tax at the rate specified in the following table, from the aforesaid person to whom such sales have been made.

Category of Sale Rate of Tax
Filer Non-Filer
Fertilizers 0.7% 1.4%
Other than Fertilizers 0.1% 0.2%
Sub-Section (2): Credit for tax collected under sub-section (1) shall be allowed in computing the tax due by the distributor, dealer or wholesaler on the taxable income for the tax year in which the tax was collected.