FILING OF WEALTH STATEMENT ALONG WITH RECOCILIATION STATEMENT

SECTION 115 (4B) of the Income Tax Ordinance 2001

CLARIFICATION REGARDING SRO 603(1)/2009 DATED JUNE 25 2009

Federal Board of Revenue has clarified certain issues relating to SRO. 603(I)/2009 vide their letter dated 19th Aug 2009 which is reproduced hereunder for information and necessary compliance.
  

1)Applicability of the SRO

Implications of SRO 603

THe Business community has already shown his concern that implementation of the said sro shall only increase business cost and not going to help the FBR in any way to generate any additional income as expected by them.

On the other hand the enforcement of SRO from June 25, 2009 has led to raised many queries which are yet to clarify by the FBR as detailed hereunder:

1.The concept of minimum taxis very old which was abolished by the Finance Act, 2008 and now re-introduced by the Finance Act, 2009.

2.This section (113) is applicable to a resident company onlyeven in cases wherein they are not required to pay tax for any reason including the following:

Clarification required –SRO No.603 (1) dated 25-06-2009

In the seminar held on 14^th July, 2009 organized by Karachi Chamber of Commerce & Industry in collaboration with Sales Tax Bar Association, the following Questions were raised relating to above SRO for which necessary clarification is required immediately as tax payers assessed withlarge tax payers unit have stopped the payments to small & medium suppliers.

KARACHI SALES TAX BAR ASSOCIATION

khushnoodk@gmail.com
taxes1@cyber.net.pk
Phone Nos. 9221-4384625,

9221- 4384630,

Mobile; 0333-2108546

Please also visit our web site www.karachisalestaxbar.org

For the Kind Attention of: Dated 25/07/09

Honourable FTO,

Dr. Shoaib Suddle,

ISLAMABAD.

Further Submissions- (Suggestions with reference to the meeting dated 22/07/09)

Dear Sir,

Further to our meeting dated 22-07-2009 and as desired, we are pleased to submit the following further submissions/details for your kind review:

1. Time Limit for filing of complaint Section 10(3):

It has been a source of strength for the tax payer, that a strong institution like "Federal Tax Ombudsman" is functioning and providing great relief to the tax payer and addressing the problems and grievances for the last so many years.

However, to further improve the working of this great institution, we feel our prime duty to give suggestions as under:

PROPOSED ADMINISTRATIVE CHANGES:

Others important Amendments:

Rationalization of Minimum Tax Regime applicable to certain Retailers – Section 113 B Clause (c)

At present a retailer being individual or associations of person having turnover exceeding Rs 50,00,000 for any tax year and who is subject to special procedure for payment of Sales Tax under Chapter III of the Sales Tax Special Procedure Rule 2006

And will not be entitled to claim any adjustment of any withholding tax collected or deducted under any head

EXPORTS

SECTION 154

Since Finance Act 1992, an exporter is being subjected to a final tax generally at the rate of 01% deducted on the proceeds of foreign exchange realization on account of export of goods and the tax deducted by an Authorized Dealer or bank constitute full and final discharge of tax liability of an exporter.

Export indenting commission

Payments for goods and services

Section 153

In sub section 6 the second proviso was substituted and there after following new sub clause shall be inserted namely:-