1. Voluntary Tax Compliance Scheme: deadline for traders extended till April 30
April 01,
2016
The Federal Board of Revenue
(FBR) has extended deadline for filing of income tax returns by the traders
under Voluntary Tax Compliance Scheme (VTCS) till April 30, 2016. Haroon Akhtar
Khan Special Assistant to Prime Minister on Revenue told Business Recorder that the government
has also extended date for payment of concessionary rate of withholding tax at
the rate of 0.4 percent for non-filers upto April 30, 2016, he added.
Meanwhile, the FBR has so far received around 7737 returns of non-filers and
generated revenue to the tune of Rs 740 million under the VTCS. The working
capital of approximately Rs 74 billion has been legalised under the VTCS.
2. Nine months: FBR almost meets Rs 2.1 trillion target
April 01,
2016
Federal Board of Revenue (FBR)
has almost met the revenue collection target of Rs 2100 billion set for the
first nine months (July-March) 2015-16 by provisionally collecting over Rs
2,090 billion during this period. Sources told Business Recorder late Thursday night that the FBR is expecting
an additional revenue of around Rs.10 billion on compilation of final figures
in coming days. Following inclusion of Rs.10 billion in provisional data of
Rs.2090 billion, the FBR will surpass the assigned tax projections for first
nine months (July-March) 2015-16.
On meeting the assigned target
for this period, the FBR will be in a position to meet the annual target of
Rs.3103.7 billion for 2015-16 against the downward revised target of Rs.2605
billion in 2014-15. The monthly collection is around Rs.290 billion for March
2016 which is likely to be further increased. It''s a great achievement by FBR
that we have almost met the target for the first nine months of this fiscal
year. Growth for nine months is in excess of 19.5 percent provisionally and for
March is in excess of 26 percent provisionally, sources added.
3. Huge consignment of Indian origin cloths seized
April 01,
2016
Under the ongoing anti-smuggling
drive, the anti-smuggling squads of the Customs Collectorate Islamabad seized a
huge consignment of Indian origin cloths. It is learnt that the anti-smuggling
squads seized near Deana Chowk, ST Road, District Jhelum, a huge consignment of
Indian origin ladies sarees, fabric, stitched ladies suits, bridal dresses and
laces etc, which was a full truck load coming from Chakoti, Azad Kashmir.
Three accused persons have been
arrested and a Hino truck No. MD-XA-612 was also seized. FIR No.11/2016 dated
31.3.2016 has been registered and the further investigations have been
initiated. The total approx value of the seizure comes to about Rs.2,670,806/-.
The MCC Islamabad has intensified
its anti-smuggling drive against the smugglers on the special instructions of
the Federal Board of Revenue (FBR) Recently, an anti-smuggling operation of
Model Customs Collectorate Islamabad resulted in a major seizure of consignment
of Indian origin, smuggled, sexual potency enhancement drugs and 670 sets of
mobile phones to the tune of millions of rupees.
The enforcement actions have been
intensified and successful interceptions have been made by the anti-smuggling
staff of the MCC Islamabad. Based on data analysis of smuggling trends and
information-based actions, the MCC Islamabad has chalked out a comprehensive
strategy to check smuggling of consignments specifically through motorways.
Moreover, the anti-smuggling operations have been expanded within the
territorial jurisdiction of the MCC Islamabad, plugging the loopholes through
serious efforts of the anti-smuggling staff.
4. Sales tax on motor spirit reduced
April 01,
2016
The Federal Board of
Revenue (FBR) has reduced sales tax on motor spirit from Rs 14.48 per litre to
Rs 12.89 per litre from April 1, 2016. The FBR has issued SRO.268(I)/2016 here
on Thursday to be effective from April 1, 2016. Under the SRO, the sales tax on
Motor spirit has been fixed at Rs 12.89 per litre as compared to previous rate
of Rs 14.48 per litre.
According to the SRO, the
sales tax on HOBC has been fixed at Rs 13.90 per litre as compared to previous
rate of Rs 18.57 per litre. Sales tax on Kerosene has been fixed at Rs 4.76 per
litre against Rs 10.40 per litre. Sales tax on High speed diesel oil would
remain unchanged at Rs 29.57 per litre.
Through this SRO, the
sales tax on Light diesel oil has been fixed at Rs 4.72 per litre as compared
to last month rate of Rs 9.63 per litre. Last month, the FBR had fixed sales
tax per litre on all petroleum products from February 1, 2016, replacing the
previous mechanism of charging sales tax on percentage basis. The basis for
collecting sales tax on POL products was changed from February 1, 2016. Due to
change in sales tax collection mechanism on POL products, the FBR will charge
fixed amount of sales tax on each POL product even POL prices show major
decrease internationally.
Following id the text of
the SRO issued here on Thursday: In exercise of powers conferred by clause (b)
of sub-section (2) and sub-section (6) of section 3 of the Sales Tax Act, 1990,
the Federal Government is pleased to direct that the following further
amendment shall be made in its Notification No.SRO 57(I)/2016 dated 29th
January, 2015, namely In the aforesaid notification, for the existing table the
following shall be substituted, namely: This notification shall take effect on
and from the 1st April, 2016.
Sr. No
|
Description
|
PCT heading
|
Rate per Litre
|
1
|
Motor spirit excluding HOBC
|
2710.1210
|
12.89
|
2
|
HOBC
|
2710.1210
|
13.90
|
3
|
Kerosene
|
2710.1911
|
4.76
|
4
|
High Speed Diesel Oil
|
2710.1931
|
29.57
|
5
|
Light Speed Diesel Oil
|
2710.1921
|
4.72
|
5. Tax evasion: paper mill raided, record seized
April 01,
2016
The Directorate General of
Intelligence and Investigation Inland Revenue has conducted a raid on the
business premises of a paper mill (Large Taxpayer Unit) of Lahore involved in
massive evasion of tax and retrieved valuable records including CPUs, laptops,
record documents to verify suppression of supplies/sales, causing massive loss
to the national kitty.
Sources told Business Recorder here on Thursday
that the prompt action has been taken by the directorate IR on the basis of
analysis of data, supportive evidence and data trends of sales tax and income
tax in the said sector. During scrutiny of records, the agency has been
focusing on loopholes used by big units or manufacturing units to evade the tax
authorities. In this regard, a team of expert officials are day and night
analysing third party data, to check possible evasion of taxes, using FBR's
data base and electronic records available with the system. Within the paper
sector, it is a major breakthrough of the agency to frame case against a large
taxpayer unit falling within the jurisdiction of Large Taxpayer Unit (LTU) of
Lahore. The similar nature of actions against big companies would not only help
the FBR in achievement of targets but also be instrumental in improving
compliance by the other units of the same sector. Interestingly, the
directorate of intelligence IR is picking cases on the basis of irrefutable
evidence and intelligence based information backed by complete homework. In
this specific case of LTU, intelligence gathering and market data has been
analysed before framing case against the big company. Moreover, quantity of
goods produced and subsequent quantity of supplies of said goods in a tax
period remains almost the same but the consumption of electricity varies to a
greater extent, prompting the agency to further investigate the matter.
According to the details,
Directorate General, I&I-IR gathered credible information that a Paper
Mills Ltd, Lahore is engaged in manufacturing of paper and paper products and
is committing a massive evasion of tax by suppressing its actual value of
supplies in violation of section 2(46) of the Sales Tax Act, 1990. Preliminary
inquiry in the matter revealed that the declared average price per Metric Ton
of paper & paper board being produced and cleared by the registered person
is drastically lower than the actual value of supply on which the goods are
being sold. The intelligence gathered & quotations obtained from the market
revealed that presently the price of paper manufactured by the registered
person in open market is Rs.93000/- per metric ton whereas analysis of
declarations made by the registered person depicted that during the period
January, 2011 to December 2015, the declared average price of per metric ton of
the same product is around Rs.65,000/-. The profit margin of wholesaler/ dealer
in this business is normally up to 5% which, thus, indicated a huge difference
in the price/ value of supply per metric ton being declared by the R/P and
actual value on which sale are being made. It was further noticed that during
the period under reference the registered person has produced and supplied
exercise books Supplies of Exercise Books" declared by the registered
person was actually required to be declared as "exempt supply"
instead of "zero rated" with effect from 4/2014. In this regard, the
registered person was required to claim input tax as per sub rule (3) of Rule
25 of Chapter-IV (apportionment of input tax) of the Sales Tax Rules, 2006
against the "exempt supply", whereas the registered person has
violated the Rules and provisions of the law.
Further analysis of sales tax
declarations of the registered person and cross matching of the data revealed
that for the period January 2011 to December 2015, the total declared
sales/value of supply of registered person excluding sales tax comes to the
tune of Rs.7,533,712,254/- out of which 75% ie Rs.5,615,098,639/- comprises of
sales made to un-registered persons. Moreover, a major buyer of the registered
person as declared in the sales tax returns is Trading Corporation. The
investigations of the agency have revealed that the said Trading Corporation
was just created as a business concern on paper only and that too in the name
of an employee of Paper Mills Ltd with a meagre capital of Rs.20,000/-,. The
paper mill declared supply of taxable goods valuing Rs.232 million to Trading
Corporation which subsequently declared supply of same goods without any value
addition to the unregistered buyers meaning thereby that most of the declared
sales to unregistered persons by the registered person are un-identifiable.
It was also noticed that while
quantity of goods produced and subsequent quantity of supplies of said goods in
a tax period remains almost the same but the consumption of electricity varies
to a greater extent on the both accounts viz-a-viz (i) number of electricity
units consumed for per metric ton of production and (ii) cost/value of
electricity utilized for per metric ton of production, which is evident from
record. The variation ranges from 1 percent to 64 percent which is
unjustifiable. The part of electricity cost in production and supplies is much
higher than the cost of other variables/raw materials for production. This is
how M/s Premier Paper Mills Ltd had managed to under invoice/under declare the
value of its taxable supply resulting in evasion of due sales tax.
Accordingly the legal action of
searching the premises of the aforementioned business (the head office as well
as the manufacturing premises), was, carried out and necessary records
including Server, CPUs, laptops, private record documents, chequer books and
record of Premier Trading Corporation (a dummy business premises of the
aforementioned registered person) were resumed to proceed in
investigation/inquiry in the case, directorate added.
6. FBR revises organisational structure of IT wing
April 01,
2016
The Federal Board of Revenue
(FBR) has revised the organisational structure of the Information Technology
(IT) wing of the FBR. According to a notification issued here on Thursday, IT
Wing's functions have been customised and Second secretary (IT-I); Second
secretary (IT) would deal with different IT related functions.
The job description of Aamar
Javed, SST (IT-I) is that he would deal with all issues relating to FTO, courts
etc in co-ordination with Pakistan revenue Automation Limited (PRAL) or other
offices; all matters relating to TAGR; implementation of policy directions of
IR-Policy Wing/ IR-Operation's Wing by PRAL and any other task assigned by the
Member (IT)/ Chief (IT).
The job description of Kashif
Younas, SST (IT) revealed that he would be responsible for processing of
payments/ renewal of contracts with all existing vendors; preparation of Budget
for IT Wing; hiring of support/ maintenance services for Data Centers; payments
to PRAL and any other task assigned by the Member (IT)/ Chief (IT), it added.
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