September 17, 2013 BRIEF TAX NEWS: 1). Small number of service providers netted: KPRA imposes 16 percent sales tax on service. Khyber Pakhtunkhwa Revenue Authority (KPRA) has imposed 16 percent sales tax on services as has been done by Sindh Revenue Board (SRB) and Punjab Revenue Authority (PRA). PRA and SRB imposed standard rate of 16 percent sales tax on service providers. The KPRA, which became functional from July 1, 2013, has also imposed 16 percent sales tax on services but in contrast to Punjab and Sindh has initially levied tax on a small number of service providers. 2), Import of beverages: Customs values revised. The Directorate General of Customs Valuation Karachi has revised customs values on the import of beverages for accurate assessment of customs duty. It is learnt on Monday that the directorate has issued a valuation ruling 572 of 2013 in this regard. According to the ruling, it was brought to the notice of the Directorate General of Customs Valuation by Customs Collectorates that Beverages (Aerated waters) were being imported at under-invoiced values causing loss of revenue to the exchequer. Therefore, an exercise was conducted to determine the Customs value of the said product in terms of section 25-A of the Customs Act, 1969. 3). Random computer ballot: FBR issues NTNs of 41,727 cases selected for audit. The Federal Board of Revenue (FBR) has issued National Tax Numbers (NTNs) of 41,727 cases selected for audit (Tax Year 2012) through random computer balloting. The FBR here on Monday issued the NTNs of income tax, sales tax and federal excise returns (both corporate and non-corporate) cases picked for audit pertaining to tax year 2012. A total of 5 percent of the total return filers have been selected for audit on random basis without any specific parameters. The computer ballot selected 5 percent or 41,727 out of the total 834,563 tax returns filed for income tax, sales tax and federal excise duty. The list of income tax corporate cases revealed that the FBR has issued NTNs of 1,163 cases in ascending order.
Posted on: Tue, 17 Sep 2013 11:27:16 +0000