FBR Notification (770 (I)/2020)

 

Introduction

 

Federal Board of Revenue (Revenue Division) had issued Corrigendum in the Sales Tax Notification S.R.O. No. 770 (I)/2020 dated August 24, 2020.

 

Commentary

 

Earlier the aforesaid Notification was issued while reducing the rate of Sales Tax on import of sugar. However, through the aforesaid Corrigendum, the words “white crystalline sugar falling under HS codes 1701.9910 and 1701.9920” may be read as “white sugar”. Moreover, the expression “from 25th August, 2020 to 30th November, 2020 (both days inclusive)” may be read as “from 25th August, 2020 to 15th November, 2020 (both days inclusive)”.

 

FBR Notification (S.R.O. No. 771(I)/2020)

 

Introduction

 

Federal Board of Revenue (Revenue Division) had issued Corrigendum in the Income Tax Notification S.R.O. No. 771 (I)/2020 dated August 24, 2020.

 

Commentary

 

Earlier the aforesaid Notification was issued while reducing the rate of Income Tax on import of sugar. However, through the aforesaid Corrigendum, the words “white crystalline sugar falling under HS codes 1701.9910 and 1701.9920” may be read as “white sugar”. Moreover, the expression “provided that such imports shall not exceed three hundred thousand metric tons in aggregate, as per mode and manner prescribed by Ministry of Commerce during the said period” may be read as “as per quantity, quality, mode and manner prescribed by Ministry of Commerce during the said period”.

 

FBR Notification (S.R.O. No. 777 (I)/2020)

 

Introduction

 

Federal Board of Revenue (Revenue Division) had issued Sales Tax Notification S.R.O. No. 777 (I)/2020 dated August 25, 2020, whereby further amendments have been made in Sales Tax Rules, 2006.

 

Commentary

 

In the aforesaid Rules, after Chapter XVII, two new Chapters (CHAPTER XVII-A & “CHAPTER XVII-B) has been inserted, whereas a brief summary for each Chapter is discussed below:

 

“CHAPTER XVII-A GREENFIELD INDUSTRIAL UNDERTAKING APPROVAL AND EXEMPTION RULES”

 

  • The provisions of this chapter shall apply to an industrial undertaking applying for approval for “Greenfield Industry” and exemption from levy of sales tax;
  • A registered person shall make an application electronically to the Commissioner Inland Revenue having jurisdiction in the form prescribed in Annexure-I along with documents prescribed in Annexure-II of this Chapter. The registered person shall also submit a hard copy of the prescribed application to the Commissioner Inland Revenue for the purposes of approval;
  • After scrutiny of the application and the documents annexed thereto, the Commissioner Inland Revenue shall, forward the application to the Engineering Development Board, for seeking its expert opinion;
  • After completion of all the formalities, the Commissioner Inland Revenue may, through an order in writing, approve the industrial undertaking or after recording the reasons in writing, refuse to grant approval, however, registered person may prefer an appeal within sixty days of the receipt of the order;
  • The Commissioner Inland Revenue shall finalize the applications filed under Rule 158B within fifteen days of its receipt;
  • The exemption certificate shall be automatically transmitted from IRIS to WeBOC as per existing procedure, however, the registered person shall upload a copy of the order of approval as Greenfield Industry already issued by the Commissioner Inland Revenue in WeBOC at the time of preparations of Goods Declaration for the imported plant and machinery;

 

“CHAPTER XVII-B PROCEDURE FOR COLLECTION AND PAYMENT OF EXTRA TAX ON SUPPLIES OF ELECTRIC POWER AND NATURAL GAS CONSUMED BY UNREGISTERED PERSONS AND PERSONS OTHER THAN ACTIVE TAXPAYERS”

 

  • Every person supplying electric power or natural gas, shall charge and collect extra tax at the rate notified by the Federal Government, from every consumer having an industrial or commercial connection, where the bill for a month is in excess of rupees fifteen thousand, and the consumer’s name does not appear on the Active Taxpayer’ List.
  • The amount of extra tax is not adjustable by the supplier or the consumer;
  • After due verification, the supplier shall incorporate the sales tax registration number in its billing system and stop charging extra tax, however, in case consumer cease to exist on ATL, the supplier shall start charging extra tax again.

 

FBR Notification (S.R.O. No. 776 (I)/2020)

 

Introduction

 

Federal Board of Revenue (Revenue Division) had issued Sales Tax Notification S.R.O. No. 776 (I)/2020 dated August 25, 2020, whereby amendments have been made in Sales Tax Rules, 2006.

 

Commentary

 

In the aforesaid Rules:

  1. In Rule 2, “Income Tax Ordinance, 2001 (XLIX of 2001)” has been inserted in the definition of Relevant Acts.
  2. In Rule 2, definition of “null return” has been inserted vide clause “(xxxv-b)” whereby, a sales tax return which shows no data relating to sales and purchases during a tax period shall be a “null return”.
  • In Rule 5, in sub-rule (1), in form STR-1, the existing serial number 23 (Total businesses/branches) has been substituted through which “details of business outlets/ branches” and “details of all brands names/ trademarks in which dealing” is now required to be filled.
  1. In Rule 14, in sub-rule (1), in form STR-7 (Production Data), the existing Annex-J has been replaced through which more detail of production is now required to be filled.
  2. All registered manufacturers making supply of taxable goods as mentioned in column (2) of the Table provided in Rule 14, shall furnish details in accordance with aforesaid Annex-J. Through the aforesaid notification, after entry 57 in the Table, a new entry “58” for taxable good “Concentrate Lit/Kg.” has been added.
  3. In Rule 18, “Electronic filing of Sales Tax Return”, in sub rule (1), a new Proviso has been added whereby a registered person if fails to fill-in relevant data in any applicable column or annexure of Sales Tax Return, such Return shall be treated as invalid.

Moreover, an explanation has been added whereby the electronic return designed in pursuance to the change request forms and finally made available on web portal shall be deemed as prescribed return.

 

COMBINED LINK OF NOTIFICATIONS

 

 

 

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