Federal Budget 2013-14

Salient

No Change in GST Rate: FBR

ISLAMABAD  - Federal Board of Revenue Chairman Ansar Javed Wednesday denied the news that government has increased the standard rate of general sales tax (GST) by 1 per cent through presidential ordinance.

There were Several News that GST rate will be enhanced to overcome budget deficit till June 30, 2013 by  Care Take Government. However there are some rumors that Sales Tax rate has been increase while there were no Official Notification of such increase issue.

Reference:

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/business/23-May-2013/no-increase-in-gst-rate-fbr-chief

FTO says provisions allow multiple Amendments: Assessment under section 122(5A) of IT Ordinance:

Giving an order in favor of Federal Board of Revenue (FBR), Federal Tax Ombudsman Dr Muhammad Shoaib Suddle has observed that the provisions of section 122(5A) of the Income Tax Ordinance 2001 permit multiple amendments to an assessment in case of concealment. 

Sources told here that in a recent order passed by FTO it was ruled, the provisions of Section 122(5A) of the Ordinance permit multiple amendments to an assessment. This is not a case of ‘double jeopardy’ and the passage of an order under Section 122(5A) of the Ordinance on the basis of concealment of sales/turnover is, prima facie, well within the legal framework and does not suffer from any defect.

The FTO stated that delegation of authority by the Commissioner IR to the Addl CIR to exercise revisionary jurisdiction under Section 122(5A) is within legal framework and all authorities placed in the charge of the Commissioner IR stand empowered to exercise their delegated authority in accordance with law and no fatal defect of jurisdiction in the case of any authority has been established by the Complainant.

Parametric Ballot-FBR Selected 1217 Cases for Audit

FBR Conducted Parametric Ballot for Selection of Cases for Audit for the Tax Year 2011. Representatives of Stakeholders were also present at the balloting.  Total 12,609 cases out of1.677 Million cases selected through parametric ballot.

The FBR Spoke’s person said that the selection was made on the basis of various risk parameters after consultation with stake holders. They informed that FBR has ensured transparency in the process of selection of cases for audit. The list of cases selected for audit has been placed on FBR’s website showing taxpayer’s National Tax Number.

While, Cases of Presumptive Tax Regime and Salaried Individual are not made part of selection.

Complete lists of selected cases are available with the FBR Website.

List of cases selected for audit through parametric computer ballot for tax year 2011 for Federal Excise Duty Corporate.

List of cases selected for audit through parametric computer ballot for tax year 2011 for Income Tax Corporate.

List of cases selected for audit through parametric computer ballot for tax year 2011 for Income Tax Non-Corporate.

List of cases selected for audit through parametric computer ballot for tax year 2011 for Sales Tax Corporate.

List of cases selected for audit through parametric computer ballot for tax year 2011 for Sales Tax Non-Corporate.

Standardized WHT regime for Imports

FBR through its S.R.O 140 dated February 26, 2013 has made amendments in the second schedule to the Income Tax Ordinance. Through this notification Withholding Tax on Imports are standardized i.e a uniform rate of 5% shall be applicable on Import.

In exercise of the power conferred by sub-section (2) of Section 53 of the Income Tax Ordinance 2001, the Federal Government is pleased to direct that the following further amendments shall be made in the second schedule to the said ordinance namely:

In the aforesaid Schedule:

a)      in Part 11,- clauses (9), (9A) and (13G) shall he omitted; and

b)      in Part IV, in clause (57)
 i.            for the word “sections’, occurring first, the word “section” shall be substituted: the figures "113” and “148” shall be omitted; and

ii.            in sub-clause (vi) the second proviso shall be omitted, it added.

Prior to this Notification these Clauses were as follows:

    (9A) Tax under section 148 shall be collected at the rate of 3% on the import value of raw  
             material imported by an industrial undertaking for its own use.

             Provided that the rate of 3% shall be applicable on production of an exemption certificate 
             issued by the commissioner.

    (9B) Tax under section 148 shall be collected at the rate of 1% on import value of Remittable 
             steel (PCT Heading 72.04) imported by an industrial undertaking for its own use.

    (13G) Tax Under section 148 on the following items shall be collected @ 1% of their import 
               value as increased by [Custom-duty, sales tax and Federal Excise duty], if any levied 
               thereon:

                               iv.            Gold

                                v.            Mobile Telephone Sets

                              vi.            Silver