Contact Address:
4th Floor, Central Hotel Building
Civil Lines, Merewether Road
Karachi
Phone: 021 – 35644872
Fax: 021 – 35694578
E-mail: mim@mimandco.com
Presented by:
Mohammad Rehan Siddiqui
1
2
ADVANCE TAX AND DEDUCTION OF TAX AT SOURCE
Historical background & Concept of Advance Tax
The concept of Advance Tax was introduced in the sub-continent
as a war measure to combat inflation and to with draw a part of
the unprecedented amount in circulation. However in the case
Prushottamdas vs. CIT 48 ITR (SC) 206, 211; the honorable
superior court has observed that like many other innovations in
taxation legislation, this innovation also has outlived its exigency
which gave it birth. It was further observed that Government rest
on the principle of pay as you earn i.e. paying tax by installments
in respect of the income of the very year in which the tax is paid.
3
ADVANCE TAX AND DEDUCTION OF TAX AT SOURCE
Historical background & Concept of Advance Tax
The Income Tax Ordinance, 2001 provides for following three modes of
collecting taxes in advance , which we will discuss in detail :Advance Tax directly liable to be paid;
Deduction at source ; or
Collection at source.
4
ADVANCE TAX UNDER SECTION 147
(ADVANCE TAX DIRECTLY LIABLE TO BE PAID)
Who is liable to pay advance tax?
Every taxpayer, whose income was charged to tax for the latest
tax/assessment year shall be liable to pay advance tax for the year other
than the following:
a) Income chargeable to tax under the head Capital Gains;
b) Income chargeable to tax under the heads:
i)
ii)
iii)
Dividend (under section 5)
Tax on Certain payments to Non Residents (under section 6);
Shipping and Air Transport (under section 7);
5
ADVANCE TAX UNDER SECTION 147
(ADVANCE TAX DIRECTLY LIABLE TO BE PAID)
c) Income chargeable to tax at source under the head Property
Income;
d) Income subject to deduction of tax at source under the head
Salary;
e) Income under the following heads of income on which tax has
been collected as final tax liability and no tax credit is allowed as
result of sub-section (3) of section 168.
i) Imports [section 148 (7)].
ii) Payments for goods and services [section 153 (6) or (7)].
iii) Export [section 154 (4)].
iv) Prizes and Winnings [section 156 (3)].
v) Transport business [section 234 (5)].
6
ADVANCE TAX UNDER SECTION 147
(ADVANCE TAX DIRECTLY LIABLE TO BE PAID)
f) The provision of this section does not apply to an individual
where the individual latest assessed taxable income is less than
Rs.500,000/-.
g) Where the taxpayer is an association of person or company the
advance shall be paid on the following formula.
(AxB/C)-D
A
is the taxpayer’s turnover for the quarter
B
is the tax assessed to the taxpayer for the latest quarter
C
is the taxpayer’s turnover for the latest tax year and
D
is the tax paid in the quarter for which tax credit is allowed
under section 168
7
ADVANCE TAX UNDER SECTION 147
(ADVANCE TAX DIRECTLY LIABLE TO BE PAID)
When advance tax is payable?
For a Quarter of Date of Payment
September On or before 15th day of September
December On or before 15th day of December
March On or before 15th day of March
June On or before 15th day of June
8
ADVANCE TAX UNDER SECTION 147
(ADVANCE TAX DIRECTLY LIABLE TO BE PAID)
When advance tax is payable?
For a Quarter of Date of Payment (Association of persons)
September On or before 25th day of September
December On or before 25th day of December
March On or before 25th day of March
June On or before 15th day of June
9
WITHHOLDING TAX REGIME
10
ADVANCE TAX UNDER SECTION 147
(ADVANCE TAX DIRECTLY LIABLE TO BE PAID)
When advance tax is payable?
For a Quarter of Date of Payment (Association of persons)
September On or before 25th day of September
December On or before 25th day of December
March On or before 25th day of March
June On or before 15th day of June
11
REGIME (WITHHOLDING AND PRESUMPTIVE TAX REGIME
HISTORICAL BACKGROUND AND OBJECTIVE OF PTR
Tax administrators in Pakistan face major problems of nonreporting and under-reporting of income. The Withholding Tax
and Presumptive Tax Regimes are not new concepts. The
Presumptive Tax as initially introduced in the Indian Income Tax
Act, 1922 under section 18(3BB) through which tax was
imposed on Trading in Liquor, Timber and other Forest Produce
in India.
12
REGIME (WITHHOLDING AND PRESUMPTIVE TAX REGIME
The Tax administrators in Pakistan in order to reduce the
element of tax evasion requires every prescribed person to
deduct tax at the time of making payment as per the prescribed
rates provided in First Schedule of the Income Tax Ordinance,
2001 on the basis of gross value goods delivered or services
rendered.
13
DEFINATION OF PRESCRIBED PERSON AS PER
INCOME TAX ORDINANCE, 2001
The definition of prescribed person provided in section 153 of
the Income Tax Ordinance, 2001 [153(7)]
The Federal Government
A company
Association of person constituted by or under, law
A non profit organization
A foreign contractor or consultants
A consortium or joint venture
14
DEFINATION OF PRESCRIBED PERSON AS PER
INCOME TAX ORDINANCE, 2001
An export house for the purpose of sub section (2) of section 153
An Association of person having turnover of fifty million rupees or
above tax year 2007 or in subsequent year
An individual having turnover of fifty million rupees or above in
tax year 2009 or in any subsequent year
A person registered under the Sales Tax Act, 1990
15
PRESCRIBED PERSON REQUIRES TO DEDUCTE TAX
Imports
(Under section 148)
Salary
(Under section 149)
Dividend
(Under section 150)
Profit on debt
(Under section 151)
Payments to non resident
(Under section 152)
Payments to Goods, Services and contracts
(Under section 153)
Exports
(Under section 154)
Income from property
(Under section 155)
Prize Winnings
(Under section 156)
Petroleum Products
(Under section 156A)
16
UNDER SECTION 148 OF
THE INCOME TAX ORDINANCE, 2001
The Collector of Customs shall collect advance tax from every
importer of goods on the value of goods at the rate specified in
Part-II of the First Schedule. In this section Collector of Customs
means the person appointed as collector of customs under section
3 of Customs Act 1990.
17
VALUE OF GOODS FOR COLLECTION OF
UNDER SECTION 148 OF
THE INCOME TAX ORDINANCE, 2001
In this section value of goods means the value of goods as
determined under the Customs Act 1990 as if the goods were
subject to ad valorem duty increased by the custom duty federal
excise duty and sales tax if any payable in respect of the import of
the goods.
AD Valorem: A tax Base on the assessed value. Ad valorem taxes
can be property tax or even duty on imported item
18
IMPORTED GOODS NOT COVERED
UNDER FINAL TAX REGIME
The Tax Collect under this section shall be a final tax of the
taxpayer. The tax collection under this section shall not be treated
as final tax in case of imports made by the manufacturer:
19
IMPORTED GOODS NOT COVERED
UNDER FINAL TAX REGIME
Raw Material, plant, machinery, equipment and parts by an
industrial undertaking for its own use
Fertilizer by manufacturer of fertilizer
Motor Vehicles in CBU condition by manufacturer of motor vehicles
Large import houses who have paid up capital exceeding Rs. 250 (M)
Have imports exceeding Rs. 500 (M)
Own Total Assets exceeding Rs. 350 (M) at the close of the year
Tax collected in the case of ship breakers shall be final tax liability
20
IMPORTED GOODS NOT COVERED
UNDER MINIMUM TAX REGIME
Tax required to be collected from a person under this section on the
import of edible oil and packing material for a tax year shall be
minimum tax
21
RATES OF ADVANCE TAX UNDER SECTION 148 OF
THE INCOME TAX ORDINANCE, 2001
Industrial undertaking importing remeltable steel and directly
reduced iron for its own use at the rate of [1%]
Persons importing potassic fertilizers in pursuance of Economic
Coordination Committee of the cabinet’s decision No. ECC155/12/2004 dated the 9th December, 2004
Persons importing urea; and
Manufacturers covered under Notification No. S. R. O. 1125(I)/2011
dated 31st December, 2011.
22
RATES OF ADVANCE TAX UNDER SECTION 148 OF
THE INCOME TAX ORDINANCE, 2001
Goods Covered under S. R. O. 1125(I)/2011 dated 31st December,
2011provides zero rated sales tax regime on or as the case may be
at the rate of five percent wherever applicable as per the PCT
heading number.
Goods covered under SRO 1125: Leather, Textile & articles, sports
goods, surgical goods, chemicals of various categories.
The benefit of this notification shall be available to manufacturer,
importer, exporter and wholesaler
23
RATES OF ADVANCE TAX UNDER SECTION 148 OF
THE INCOME TAX ORDINANCE, 2001
Persons importing pulses at the rate of [2%]
Commercial importers covered under Notification No. S. R. O.
1125(I)/2011 dated the 31st December, 2011 at the rate of [3%]
Ship breakers on import of ships at the rate of [4.5%]
Industrial undertakings not covered at the rate of [5.5%]
Companies not covered at the rate of [5.5%]
Persons not covered at the rate of [6%]
24
SALARY UNDER SECTION 149 OF
THE INCOME TAX ORDINANCE, 2001
Every persons responsible for paying salary to an employee shall at
the time of payment, deduct tax from the amount paid at the
employee’s average rate of tax computed at the rates specified in
employee chargeable under the head Salary for the tax year.
Every person responsible for directorship fee or fee for attending
board meeting or such fee by whatever name called shall deduct tax
on the gross amount payable at the rate of [20%].
25
DIVIDENDS UNDER SECTION 150 OF
THE INCOME TAX ORDINANCE, 2001
The rate of tax to be deducted under section 150 of the Income Tax
Ordinance, 2001.
Dividends declared or distributed by purchaser of power project
privatized by WAPDA and set-up for power generation at the rate of
[7.5%]
Dividends other than above;
Filer at the rate of [10%]
or
Non-filers at the rate of [15%]
26
PROFIT ON DEBT UNDER SECTION 151 OF
THE INCOME TAX ORDINANCE, 2001
Profit on debt has to deduct tax from the gross amount of profit
Filer at the rate of [10%]
*Non-filers at the rate of [15%]
Yield or profit paid is rupees five hundred thousand or less, the rate
shall to be [10%]
27
PAYMENTS TO NON-RESIDENTS
UNDER SECTION 152(1A)(1AA)(1AAA) OF
THE INCOME TAX ORDINANCE, 2001
Every prescribed shall deduct tax while making payments to nonresident
Royalty or fee for technical services at the rate of [15%]
Execution of contract or sub-contract assembly or installation
including supply of supervisory activity in relation to such project at
the rate of [6%]
Contract for advertisement services rendered by satellite channel at
the rate of [6%]
28
PAYMENTS TO NON-RESIDENTS
UNDER SECTION 152(1A)(1AA)(1AAA) OF
THE INCOME TAX ORDINANCE, 2001
Payment of insurance and re-insurance premium at the rate of [5%]
Payment of advertisement services to a non resident, media person
relaying from outside Pakistan at the rate of [10%]
Payments not covered under section (1A)(1AA)(1AAA) shall deduct
tax at the rate of [20%]
29
PAYMENTS TO NON-RESIDENTS UNDER SECTION 152(2A) OF
THE INCOME TAX ORDINANCE, 2001
Every prescribed person making a payment in full or part including a
payment by way of advance to a permanent establishment in
Pakistan of a non resident person;
On sale of goods at the rate of 3.5% of the gross amount of payable
Rendering or providing of transport services at the rate of [2%]
In any other case six percent [6%] of gross amount payable
30
PAYMENTS FOR GOODS UNDER SECTION 153 OF
THE INCOME TAX ORDINANCE, 2001
Every prescribed person making a payment in full or in part
including by way of advance to a resident persons;
For sale of rice, cotton, seeds, edible oil at the rate of [1.5%]
For sale of any other goods
-
In case of companies at the rate of [4%]
-
In case of other taxpayers [4.5%]
31
PAYMENTS FOR GOODS UNDER SECTION 153 OF
THE INCOME TAX ORDINANCE, 2001
The rate of tax to be deducted from payment of rendering of or
providing of services
-
In case of companies at the rate of [8%]
In case of other taxpayers at the rate of [10%]
The rate of tax to be deducted on execution of contract including
contract sign by a sport person, but not including a contract for the
sale of goods or rendering or providing of services
-
In case of companies at the rate of [7%]
In case of other taxpayers at the rate of [7.50%]
In case of sport person at the rate of [10%]
32
EXPORTS UNDER SECTION 154 OF
THE INCOME TAX ORDINANCE, 2001
Tax to be deducted on the value of export proceed at the time of
export under sub section (1), (3), (3A), (3B) or (3C) of the Income Tax
Ordinance, 2001 at the rate of [1%]
Every authorized dealer in foreign exchange shall, at the time of
realization foreign exchange proceeds on account of the commission
due to indenting commission agent, deduct tax from the proceeds at
the rate of [5%]
On realization of proceeds on account of sale of goods to an exporter
under inland back to back letter of credit or any other arrangement as
may be prescribed by Federal Board of Revenue, deduct tax from the
amount of the proceeds at the rate of [1%]
33
INCOME FROM PROPERTY UNDER SECTION 155 OF
THE INCOME TAX ORDINANCE, 2001
Every prescribed person making a payment in fill or part (including a
payment by way of advance) to any person on account of rent of
immovable property (including rent of Furniture an d Fixtures, and
amount of services relating to such property) shall deduct as per the
following Rates:
Income Less than Rs. 150,000/-
Rs.
NIL
Above 150,000/- but does not exceed 1,000,000/- 10% of amount exceed Rs. 150,000
Amount Exceed Rs. 1,000,000/- Rs.85,000 + 15% amounting exceeding Rs. 1,000,000/-
34
INCOME FROM PROPERTY UNDER SECTION 155 OF
THE INCOME TAX ORDINANCE, 2001
In case of companies the rate of deduction is 15% of the gross amount
of rent paid.
In case of company rental income is taxable at normal slab rate
applicable to companies i. e., 34%.
The net taxable is computed after adjustment of deductions provided
in section 15 of the Income Tax Ordinance, 2001
35
INCOME FROM PROPERTY UNDER SECTION 155 OF
THE INCOME TAX ORDINANCE, 2001
(ALLOWABLE DEDUCTIONS)
1/5th Repairs of Gross Amount of Rent
Collection charges at the rate of 6%
Any Local rate, tax, charge of cess
Premium paid (Insurance) paid or payable against damage of property
Interest paid against the mortgage of property or other capital charge
36
PRIZES & WINNING S UNDER SECTION 156 OF
THE INCOME TAX ORDINANCE, 2001
A prescribed person making payment by way of prizes and wining of
lottery, quiz or prize offered by a company shall deduct tax on the
following rate:
In case of prize on prize bonds or cross word puzzle at the rate of
[15%] of gross amount paid
In case of raffle, lottery, prize on wining a quiz or prize offer by a
company for promotion of sale at the rate of [20%] of the gross
amount paid.
37
PRIZES & WINNING S UNDER SECTION 156 A OF
THE INCOME TAX ORDINANCE, 2001
A prescribed person Selling petroleum products to a petrol pump
operator shall deduct tax from the amount of commission or discount
allowed to the operator at the rate of [12%] of the amount gross
amount paid
38
OFFENCES & PENALTIES AS PER THE
PROVISIONS OF THE INCOME TAX
ORDINANCE, 2001
39
PENALTY UNDER SECTION 182 OF
THE INCOME TAX ORDINANCE, 2001
Any person who commits any offence, fails to file any statutory
statement required under the section 114 to 165 of the Income Tax
Ordinance, 2001 or fails to deducted tax as per the rates prescribed in
First Schedule of the Income Tax Ordinance, 2001 is liable to penalty
under section 182 of the Income Tax Ordinance, 2001.
40
PENALTY UNDER SECTION 182 OF
THE INCOME TAX ORDINANCE, 2001
A person fails to file return of income under section 114 within due
date such person is liable to pay 0.1% of the total tax payable subject
to maximum penalty of 50% of the tax payable provided that if the
penalty worked out as aforesaid is less than twenty thousand rupees or
no tax is payable for that tax year than such person shall pay 20,000/rupees.
A person fails to file statements under section 115,165 or 165A within
due date such person shall pay 2,500/- per day. However per day
penalty shall not exceed Rs. 10,000/-
41
DEFAULT SURCHAGE UNDER SECTION 205 OF
THE INCOME TAX ORDINANCE, 2001
A person fails who fails to make payment under section 147 of the
Income Tax Ordinance, 2001 up to 90% of the total tax payable. Such
person shall pay default surcharge at the rate of 18% per annum
A person fails to Collect Tax under Division II of Part V or Chapter or
fails to pay to tax collected or deducted as required under section 160
of the Income Tax Ordinance, 2001. Such person is liable or shall pay
default surcharge at the rate of 18% per annum
42
SALES TAX WITHOLDING TAX RULES 2007
43
APPLICATION AND COMMENCEMENT
It is applicable to taxable services and taxable goods as are supplied by a person
Taxable goods means all goods other than those which have exempted under section 13
of the Sales Tax Act 1990
Taxable activity means any economic activity carried on by a person whether or not for
profit and includes
-
Any activity carried on in the form of a business, trade or manufacture but
does not include employee providing services in that capacity of an
employer
-
An activity carried on by an individual as a private recreational pursuit or hobby
44
Specification of Withholding Agent
Federal and provisional government departments
Autonomous bodies
Public Sector organization
Taxpayer fall in the Jurisdiction of Large Taxpayers Unit for the
purpose of Sales Tax, Federal Excise duty or income Tax
Recipient of services of advertisement, who are registered for sales
tax
45
Who is Withholding Agent ?
As per the explanation of Withholding agent given in Sales Tax
Special Procedure (Withholding) Rules 2007 that it includes the
accounting office which is responsible for making payment against
the purchases made by a government department.
46
Who is Withholding Agent ?
Registered under Sales Tax Regime (Individual person)
Registered under Sales Tax Regime (Association of persons)
Registered under Sales Tax Regime (Companies)
As per the explanation of Withholding agent given in Sales Tax
Special Procedure (Withholding) Rules 2007 now the accounting
offices of the Government Department who are making payment
against purchases acts as Withholding Agents
47
Responsibility of Withholding Agent
Indication through Advertisement or notice with regards to sales
tax deduction under the Rules against the purchases of taxable
goods from the payment to be made to supplier
A withholding agent having Free Tax Number (FTN) is liable to
deduct tax worked out on the basis of gross value of taxable
supply (Government organizations)
Recipient of advertisement services based in Pakistan shall deduct
tax as mentioned in the invoice issued by the service provider
48
Responsibility of Withholding Agent
A withholding agent shall deduct tax from the payment of services
rendered by a person based outside Pakistan on account of
advertisement services as mentioned in the invoice issued by the
service provider
In case the sales tax amount not shown in invoice the withholding
agent is liable to deduct sales tax as per the applicable rates of the
value of taxable services from the payment due to service provider
49
Responsibility of Withholding Agent
A withholding agent other than a PERSON in the jurisdiction of
Large Taxpayers Unit and the recipient of advertisement services
shall deduct an amount equal to one fifth of the total sales tax
shown in the sales tax invoice issued by a registered person
50
Responsibility of Withholding Agent
In case of purchases made by government following procedures required
to be adopted by the Drawing and Disbursing Officer (DDO).
-In case of Federal Government the Accountant General of Pakistan will
account for the amount of sales tax deducted during the month under the
Head of Account B02341-Sales Tax
-In case of purchases made by District Government the Accountant
General of Pakistan will account for the amount of sales tax deducted
during the month under the Head of Account G12777-Sales Tax
51
Responsibility of Withholding Agent
-
In case of purchases made by the department falling in
purview of Military Accountant (MAG). The MAG shall account
for the amount deducted at source during the month under
the Head of Account B02341-Sales Tax
52
Responsibility of the Collector
The Collector shall keep the list of all withholding agents falling in his
jurisdiction and monitor payment of tax deducted by withholding and
shall ensure that the return is filed
The Collector shall ensure that the return received from the bank id duly
filed in the computerized system under section 2(5AA) of the Sales Tax
Act, 1990
The Collector shall periodically ensure the suppliers mentioned in the
return filed by the withholding agent are filing their returns and duly or
rightly declaring the supplies made to withholding agent
53
Illustration of Invoice and Tax Deduction of Sales Tax
Value of Taxable supplies excluding Sales Tax
Rs.
1,000
Sales Tax
Rs.
160
Rs.
1160
@ 16%
Total Value of invoice including sales tax
=======
Sales Tax to be deducted by withholding agent [32 (i.e. 160/5)=32]
Sales Tax Payable by the withholding agent to supplier (160-32=128 )
Balance Amount Payable to supplier by withholding agent 1128[1000+128]
54
Sindh Sales Tax (Withholding) Rules 2014
55
Who is Withholding Agent ?
-
Offices of the Federal, Provisional, Local and District Governments
-
Autonomous Bodies
-
Public Sector organizations including public corporation, state owned
enterprises and regulatory bodies and authorities
-
Organizations funded fully or partially out of the budget of provisional
and federal government
-
Companies as defined in Section 2(28)
-
FBR registered or SRB registered persons receiving services of
advertisement
-
SRB registered persons receiving services from unregistered persons
56
Illustration of Invoice and Tax Deduction of Sales Tax
Value of Taxable services excluding Sales Tax
Rs.
1,000
Sales Tax
Rs.
150
Rs.
1,150
@ 15%
Total Value of invoice including sales tax
=======
Sales Tax to be deducted by withholding agent [30 (i.e. 150/5)=30]
Sales Tax Payable by the withholding agent to supplier (150-30=120 )
Balance Amount Payable to supplier by withholding agent 1120[1000+120]
57
Offences and Penalties (Section 43)
Any person who is required to be registered under the Act such person shall pay
Rs. 10,000/- or Five Percent (5%) of the amount of sales tax that would have been
liable to pay had he been registered which ever is higher
Where any person fails to file the return of income such person shall liable to pay
penalty of Rs. 5,000/- provided that if return is not filed within fifteen (15) days of
due date or Rs. 100/- for each day of default
Fails to deposit the amount of tax such person shall pay Rs.10,000/- or Five
Percent (5%) of the total tax payable for that tax period (if default is more than 3
days which ever is higher
58
Offences and Penalties (Section 43)
Any person who fails to maintain records required under the Act, such person shall
pay Rs. 5,000/- or Five Percent (5%) of the total tax payable.
Any person who knowingly or fraudulently submit false documents to any officer
of the SRB such person shall pay Rs. 25,000/- or one hundred percent (100%) of
tax payable for the tax period(s) to which offence relates.
Any who commits or attempted to commit any fraud or connives in the
commission of tax fraud of Rs. 25,000/- such person shall pay one hundred
(100%) of the tax payable for the respective tax period(s). Such person also be
liable upon conviction by a Special Judge to imprisonment for a term of five years
(5)
59
Offences and Penalties (Section 43)
Any person obstructs any officer of the SRB in the performance of his official
duties under the Act such person is liable to pay penalty of Rs. 25,000/- or one
hundred percent (100%) of the tax payable for the respective tax period(s) which
ever is higher
Any person repeats an offence for which a penalty is provided under the
provisions of the Act such person is liable to pay twice the amount of penalty
provided under the provisions of the Act
60
E-FILING REQUIREMENT INCOME TAX
61
Monthly statement under section 149 (Salary)
A withholding agent making payment on account of salary shall deducted tax
under section 149 as per the rates provided in First Schedule of the Income Tax
Ordinance 2001.
The tax deduction under section 149 shall be reported in a monthly
statement required to be filed on or before the 15th day of the next month
The statement shall consist of the following information:
Name, NTN or CNIC, Address of the person, Total amount of payments made to
person, the amount of tax collected & deposited from the person and
computerized payment receipt number (CPR)
62
Monthly statement under section 165 (Other than salary)
A withholding agent making payment on account of supply of goods, services,
payment to non resident, rent, profit on debt, commission, dividend and others
shall deducted tax under section 153 of the Income Tax Ordinance 2001 as per
the rates provided in First Schedule.
The tax deduction under section 153 to 233 shall be reported in a
monthly statement required to be filed on or before the 15th day of the next
month
The statement shall consist of the following information:
Name, NTN or CNIC, Address of the person, total amount of payments made to
person, the amount of tax collected & deposited from the person and
computerized payment receipt number (CPR)
63
Penalty for Non filing of Monthly statement
under section 165
A person fails to file monthly after due date i.e. 15th day of following the next
month is liable for penalty under section 182 of the Income Tax Ordinance.
Rate of Penalty
Rs. 2,500/- for each day of default subject to minimum penalty of Rs. 50,000/As per Clause 16 Part-III of the Second Schedule, Now the penalty under section
182 for non filing of statement under section 165 and 165A or within due date
has been reduced to Ten Thousand Rupees. (Rs. 10,000)
64
E-FILING REQUIREMENT SALES TAX
(FEDERAL)
65
Monthly Sales Tax Returns
A registered persons required to file a return under section 26 of the Sales Tax
Act 1990.
The Sales Tax Returns required to be e-filed on or before the 15th day of the next
month with all Annexures provided in STR-7
Every Registered person, being a private or public limited company shall file
annual sales tax returns in the form as set out in STR10 for a financial year by the
30th September of the following year.
66
Penalty for Non filing of Return
A person fails to file monthly sales tax return, such person shall pay a penalty of
under section 33 of the Sales Tax Act 1990 of Rs.5,000/- or 100 rupees for each
day of default
A person fails to pay due tax or any part thereof whether willfully or otherwise in
time or in the manner specified under this Act, Rules or notifications such person
is liable to pay default at the rate of KIBOR+ 3% of amount of tax due.
67
E-FILING REQUIREMENT SALES TAX
(SINDH REVENUE BOARD)
68
Monthly Sales Tax Returns
A registered persons required to file a return under section 12 of the Sindh Sales
Tax Act 2011.
The Sales Tax Returns required to be e-filed on or before the 15th day of the next
month with all Annexures provided in SST-03 along with all its annexure provided
therein
A registered person shall pay the amount of tax due on or before 15th day of the
following month to which it relates
69
Penalty for Non filing of Return
A person fails to file monthly sales tax return, such person shall pay a penalty of
under section 24 of the Sindh Sales Tax Act 2011 of Rs.10,000/- or 300 rupees
for each day of default
A person fails to pay due tax or any part thereof whether willfully or otherwise in
time or in the manner specified under this Act, Rules or notifications such person
is liable to pay Inter Bank Rate + 3% per annum of the amount of tax due.
For the purpose of calculation of default, the period of default shall be reckoned
on the sixteenth day of a month (Following the due date of tax period to which
the default relates
70