November 16, 2013 BRIEF TAX NEWS: 1). Disposable plastic articles: new customs values fixed Directorate General of Customs Valuation Karachi has issued new customs values on the import of disposable plastic boxes, cases, containers, bowls, poly propylene jelly cups and similar articles including plastic disposable household articles for accurate assessment of duty. It is learnt on Thursday that the directorate has issued a new customs valuation ruling in exercise of the powers conferred under section 25-A of the Customs Act, 1969 2). New customs values of lead acid batteries fixed. To check massive underinvoicing at import stage, collectors of customs would assess customs duty at the import of lead acid batteries applying anew the customs values of $2.39 per kg or $0.68 per kg, depending on the specification of the imported good. It is learnt on Thursday that Directorate General of Customs Valuation Karachi has issued new customs values on the import of lead acid batteries for accurate assessment of customs duty due to underinvoicing of the said item. 3).Decline in ST, FED collection: FBR initiates probe against five mega sectors. The Federal Board of Revenue has initiated investigation against five mega sectors - oil & gas exploration companies, sugar, cement, auto parts and beverage manufacturers - to ascertain reasons for declining sales tax/federal excise duty collection from these sectors in July-October (2013-14). 4). LATE FILING OF IT, WHT STATEMENTS:: penalties reduced WEALTH STATEMENT GONE OF PERSONS HAVING INCOME DURING TAX YEAR 2013, LESS THAN ONE MILLION.: IMPORTERS ALLOWED TO HAVE EXEMPTION CERTIFICATE: Detail: The penalties for late filing of income tax statements under section 115 and withholding tax statements under section 165 and 165A of the Income Tax Ordinance 2001 have been reduced from Rs 50,000 to Rs 10,000 by the FBR; while condition of Rs 1 million has been reinstated for individuals/AOPs for mandatory filing of wealth statements and in case of persons falling under Final Tax Regime (FTR) threshold of minimum tax payment of Rs 35,000 has been reinstated for filing of wealth statement. In this regard, the FBR has issued SRO.978 (I)/2013 to amend the Second Schedule of the Income Tax Ordinance 2001. Through an income tax circular, the FBR has allowed importers to avail exemption certificate u/s 148 of the Income Tax Ordinance, 2001 for a period of six months. Official said the draft of the income tax rules pertaining to section 165A of the Income Tax Ordinance 2001 has been circulated among stakeholders for comments. In this regard, the government has agreed that the FBR will not access bank accounts of existing taxpayers, ie, NTN holder filing income tax returns. The provision of access to bank accounts has been restricted to the persons operating out of the tax net, he added. According to the notification, the minimum penalty for failure to furnish statement under section 115, 165 or 165A shall be reduced to Rs 10,000. Similarly, the provisions of subsection (2) of section 116 shall not apply for the tax year 2013 to an individual or a member of an association of persons whose last declared or assessed income, or the declared income for the year is less than Rs 1 million. The provisions of sub-section (4) of section 116 shall not apply for the tax year 2013 to a person other than a company or a member of an association of persons falling under FTR and has paid tax less than Rs 35,000. The income tax circular issued on Thursday said that the circular 08 of 2013 was issued on 3.9.2013 whereby directions were issued that exemption certificate u/s 148 of the Income Tax Ordinance, 2001 for the purpose of clause (72B) of Part IV of the Second Schedule to the Income Tax Ordinance, 2001 may be issued for a period of 3 months. Representations have been received by the Board, requesting to extend the period of applicability of exemption certificate. The matter has been considered by the board and it has been decided that henceforth exemption certificates shall be issued for a period of 6 months. All other directions vide circular No 08 of 2013 shall remain unchanged, it added. Following is the text of the SRO.978(I)/2013 issued on Thursday: In exercise of powers conferred by sub-section (2) of section 53 of the Income Tax Ordinance, 2001 (XLIX of 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:In part III, after clause (15), the following new clause shall be added, namely:- (16) The minimum penalty for failure to furnish statement under section 115, 165 or 165A as mentioned in column (3) against serial No (1A) in the table given in sub-section (1) of section 182 shall be reduced to ten thousand rupees, and In part IV, after clause (81), the following new clauses shall be added, namely:- (82) The provisions of sub-section (2) of section 116 shall not apply for the tax year 2013 to an individual or a member of an association of persons whose last declared or assessed income, or the declared income for the year is less than one million rupees. The provisions of sub-section (4) of section 116 shall not apply for the tax year 2013 to a person other than a company or a member of an association of persons falling under FTR and has paid tax less than Rs 35,000, it added.
Posted on: Sat, 16 Nov 2013 12:39:33 +0000
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