FBR deadline to file annual income tax return for the tax year 2019 extended till 31.12.2019

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FBR has extended the deadline to file return for year 2020 till end of this year due to covid-19 situation. Now you can add your name in Active tax payers list by paying 1000 Rs surcharge fee and avail the benefits as tax payer.

TAX PERIOD FOR INCOME TAX RETURN

Income Tax Return relates to a specific tax year. A tax year is a period of twelve months ending on 30th day of June i.e. the financial year and is denoted by the calendar year in which the said date falls. For example tax year 2017, covers a period from 1st July 2016 to 30th June 2017.

Tax year includes special tax year, which means any period of twelve months and is denoted by the calendar year relevant to the normal tax year in which closing date of the special tax year falls. For example, tax year for the period of twelve months from January 01, 2016 to December 31, 2016 shall be denoted by calendar year 2017 and the period of twelve months from October 01, 2016 to September 30, 2017 shall be denoted by calendar year 2018.

GET INCLUSION IN ATL

A person’s name will be part of the current ATL, if the Tax Return filed pertains to the Tax year of the relevant ATL. For example, to be part of the ATL published on 1st March 2019, a person must have filed a Tax return for the Tax year 2018. Similarly, to be a part of the ATL published on 1st March 2020, a person must have filed a Tax Return for the Tax year 2019.

As a Reputed Tax consultation Firm, we can help you add your name in ATL by nominal fee of 2000 Rs as salary individual. For organizations and companies you can contact us for free consultation.

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Know everything about Budget 2020-21 for Business and Common people

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Finance Bill 2020-21 (“The Bill”) for the fiscal year 2020-21 was laid before National Assembly on 12th June 2020. The bill has proposed amendments in Income Tax Ordinance, 2001 (“ITO”), Sales Tax Act, 1990 (“STA”), Federal Excise Act, 2005 (“FEA”) among other laws. We have prepared our comments on significant amendments proposed in ITO, STA & FEA. The comments presented are brief and detailed comments will follow after passage of the bill in the National Assembly along with passage of Provincial Finance Bills in respective Provincial Assemblies. Our comments are based on publicly available copies of the Finance Bill. The interpretations of the amendments are based on our understanding of tax law and past practices. These comments are provided for general use of public and should not be used for any specific transaction. We do not guarantee that these interpretations will be acceptable by the tax department.

Budget 2020-21: Everything you need to know

The comments are prepared for general business understanding of masses.

In case of any technical query, kindly contact us. Please feel free to provide your feedback for further improvements in the document.

What is VAT in Pakistan?

VAT stands for value added tax as is universally accepted in all tax abiding countries. This levy is indirect in nature as burden of this levy is ultimately rooted to the end consumers. The description ‘value added tax’ is taken due to the reason that every supplier and/or service provider in a supply chain is required to impose this levy on the goods he supplies or service he provides so as to collect tax at a certain proportion of value which he adds to the goods or service he supplies.

This is also referred as ‘sales tax’, ‘GST’, ‘Indirect tax’ and ‘ service tax’.

GST rate on supplies of goods in Pakistan

The standard rate of GST or sales tax in Pakistan is 17% ad-velorem on imports and supplies of goods all over Pakistan with the exception of few supplies which are charged to tax at reduced rate ranging 5% to 10% and few other supplies subject to extra and fixed rate of sales tax depending upon their features and/or values e.g. confectioners and cell phones etc.

Supplies referred in 6th schedule of the Sales Tax Act, 1990 (1990 Act) and those declared as such through issuance of notification by the Federal government are exempt from sales tax.

Exports of goods from Pakistan to abroad including supplies of goods referred in the 5th Schedule to the 1990 Act and those declared as such through issuance of notification by the federal government are chargeable to sales tax at the rate of 0%.