Raza Kazmi
ISLAMABAD: Federal Board of Revenue (FBR) has issued the explanation regarding latest situation pertaining to service optimization of FBR Data Center. FBR has clarified that all applications having public interface have been operationalized and running smoothly. These operationalized projects include FBR Website, Paysis website, eFBR website, IRIS website, AJK IRIS website; IMS web service, PRA web service and Tax Asaan Mobile application.
TLTP adds: Meanwhile, the Federal Board of Revenue (FBR) on Monday said that a limitation of 120 days has been imposed with regard to the period of time during which amendment of assessment under section 122 of the Ordinance must be completed.
The FBR in a circular No. 4 Income Tax (Operations) stated that owing to availability of extended period of time, the completion of proceedings under section 122 of the Income Tax Ordinance, 2001 within desired time has remained a challenge and diverse treatment was meted out viz-a-viz time taken for completion of proceedings across the formations.
This varied treatment has commutatively resulted in below par revenue outcomes for the exchequer and increased compliance costs for the taxpayers due to protracted delays in legal actions.
The Finance Act, 2021 has brought about a significant amendment in section 122 of the Ordinance whereby a limitation of 120 days has been imposed with regard to the period of time during which amendment of assessment under section 122 of the Ordinance must be completed subsequent to issuance of a show cause notice.
The said amendment harmonizes the procedure of amendment of assessment under the Income Tax Ordinance, 2001 with the procedure of assessment under section 11 the Sales Tax Act, 1990 and section 14 of the Federal Excise Act, 2005.
The aforementioned amendment is also an effort to restore the true spirit of the Income Tax Ordinance, 2001 where amendment proceedings are entered into after carrying out inquiry or audit, if necessary, and do not remain pending for an indefinite period of time.
In case the proceedings cannot be completed within the prescribed time period of 120 days, the Commissioner may extend the time limit for up to another ninety days for recorded reasons. The new provision would apply to the show cause notices issued after July 1, 2021.
Accordingly, formations are expected to be cognizant of this important amendment. The Commissioners are required to ensure that necessary guidance is provided to assessing officers in this regard.
Meanwhile, the tax authorities have made it mandatory to pay Re1 on each invoice obtained against the purchase through the point of sale (POS) machines installed by the tier-1 retailers.
Obtaining a POS invoice and getting verified is necessary for a customer to qualify a prize scheme announced by the Federal Board of Revenue (FBR). “The POS service fee of Re1/invoice shall be collected by the Tier-1 retailers from the customers and shall be deposited along with the monthly sales tax return,” the FBR said.
The POS service fee collected each month would be deposited by the Tier-1 retailers in a separate head of account, it added. The FBR issued instructions to operationalise the guidelines issued through SRO 1006(I)/2001, dated August 9, 2021.
Through another SRO 1005(I)/2021, the revenue board issued a procedure for the prize scheme. Under this, the customers of integrated Tier-1 retailers, whose names and computerised national identity cards (CNICs), notified through a random computerised draw, would be entitled to prize in respect of their purchases from the tier-1 retailers.
As per the Sales Tax Act, 1990, the tier-1 retailers are those operating as a unit of a national or international chain of stores; a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks; a retailer whose cumulative electricity bill during the immediately preceding 12 consecutive months exceeds Rs1.2 million; a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers, as well as on the retail basis to the general body of the consumers; a retailer, whose shop measures 1,000 square-feet in area or more or 2,000 square-feet in area or more in the case of retailer of furniture; and a retailer who has acquired point of sale for accepting payment through debit or credit cards from the banking companies or any other digital payment service provider authorised by the State Bank of Pakistan.
