FBR SROs

 NOTIFICATION NO:                       S.R.O. 1172(l)/2020

DATE OF ISSUANCE:                      4^th November, 2020

EFFECTIVE FROM:                         WITH IMMEDIATE EFFECT (i.e. 4^th November, 2020).

AMENDMENTS MADE IN:             Sales Tax Rules, 2006

INTRODUCTION

Chapter V of Sales tax Rules, 2006 relates to general sales tax refunds while Chapter of V-A relates specially to refunds to five export-oriented sectors.

These refund rules were amended through SRO 918(1)/2019 dated 07th August 2019 whereby it was provided that the data provided in the monthly return shall be treated as data in support of refund claim and no separate electronic data shall be required. The amount specified in column 29 of the return, shall be considered as amount claimed for the purposes of claim under section 10 of the Act, once the return has been submitted along with all prescribed annexures. Further, in case of refund claims arising from zero-rated supplies including exports, the claimant is allowed to submit his return without Annex H and the same may be filed separately at any time but not later than one hundred and twenty days of submission of the return without Annex-H.

The commercial exporters were finding it difficult to process their refund claims in the said period of 120 days as Bank Credit Advice (BCA) is generally rece­ived in six months.

Through this notification, the Federal Board of Revenue has facilitated the commercial exporters by amending the time frame for filing Annex-H for the commercial exporters as per detail below:

CHAPTER V:                                     REFUND

Rule 28 (1) : Filing and processing of refund claims.   

A new proviso has been inserted to Rule 28 sub-Rule 1, whereby if a claimant is registered as a commercial exporter and exporting same state goods, refund claim may filed within 180 days from the date of filing of return or the date of issuance of BCA(Bank Credit Advice), whichever is later.

Chapter V-A : REFUND TO FIVE EXPORT-ORIENTED SECTORS

Rule 39D (1) : Filing and processing of refund claims.   

The first proviso to Rule 39D has been replaced, whereby the refund claimant may submit his return without Annexure-H and the same may be may be filed separately at any time but not later than 120 days or as the case may be 180 days for Commercial Exporters of the submission of return without Annexure H. The date of submission of Annex-H shall be considered as the date of filing of refund claim.

 LINK OF DOCUMENT

 202011510112714198SRO1172-2020

NOTIFICATION NO:                       S.R.O. 1184(I)/2020

DATE OF ISSUANCE:                      6^th November, 2020

EFFECTIVE FROM:                         WITH IMMEDIATE EFFECT (i.e. 6^th November, 2020).

AMENDMENTS MADE IN:             Income Tax Rules 2002

 INTRODUCTION

Finance Act, 2020 introduced the concept of agreed assessment has been introduced whereby a taxpayer in response to a notice under sub-section (9) of section 122, intends to settle his case, he may file offer of settlement in the prescribed form before the assessment oversight committee which may decide to accept or modify the offer of the taxpayer through consensus and communicate its decision to the taxpayer.

Through this notification, the Federal Board of Revenue has made amendments to the Income Tax Rules 2002 to insert Rule 231C to Procedure for assessment oversight committee.

Rule 231C.  Procedure for assessment oversight committee.   

This rule applies where the taxpayer opts to settle assessment before Assessment Oversight Committee appointed under Section 122D of the Income Tax Ordinance 2001.

The prescribed procedure for assessment oversight committee is summarized as under:

1. The taxpayer shall file Settlement application under section 122D on IRIS web portal.
2. The application is to be filed after the service of notice under Section 122 of the ITO 2001 and before the finalization of the assessment.
3. The Commissioner shall not conclude assessment proceedings under section 122 if an application, made against the notice issued under section 112(9) lies pending before the said committee.
4. The Committee shall provide opportunity of being heard to the appellant in writing after examination of the contents of the Settlement Application and facts stated therein and on scrutiny of requisition record.
5. The Committee shall decide the application within 30 days or within extended period of 60 days, for reasons to be recorded in writing by the Committee.

LINK OF DOCUMENT

202011613112937420SRO1184(I)of2020

NOTIFICATION NO:                       S.R.O. 1185(I)/2020

DATE OF ISSUANCE:                      6^th November, 2020

EFFECTIVE FROM:                         WITH IMMEDIATE EFFECT (i.e. 6^th November, 2020).

AMENDMENTS MADE IN:             Income Tax Rules 2002

INTRODUCTION

Generally, it is experienced that Federal Board of Revenue finalizes and uploads the income tax returns forms after the end of relevant financial year to which the said returns relates leaving very little time to file income tax returns and therefore, have to grant multiple extensions is return filing deadline. New rules have been introduced in Income Tax Rules, 2002 to streamline the procedure of notifying the income tax return forms.

Rule 34A.  Time limit for notifying income tax return form.   

Through the insertion of this rule, the final income tax return form shall be notified on or before the 31^st day of January of the financial year following the financial year to which the return relates.

Timelines for necessary activities to be carried out by FBR and PRAL have been notified as under:

LINK OF DOCUMENT:                  

202011613113235496SRO1185(I)of2020