For the purpose of Ease of Doing Business for registered persons amendment in various provisions of the Sales Tax Act 1990 has been proposed:

1- Section 2(4AA): A new definition has been inserted to define Commissioner (Appeals).

#Budget2021 #C4S
2- Section 2(37)(iii): The word “of” is inserted to correct drafting error.

#Budget2021 #C4S
3- Section 3- 2(43A)(g): The definition of tier-1 retailer is streamlined through insertion of a new clause whereby a retailer who has acquired point of sale accepting payment through debit or credit cards from banking companies or any other digital payment service...
... provider authorized by State Bank of Pakistan is also included in the definition of tier-1 retailer.
#Budget2021 #C4S
4- Under section 11(5), a show-cause notice can be issued for recovery of amounts not paid or short-paid within five years of relevant date. Since sales tax is payable on monthly basis, the time bar also applies on monthly basis. However, audits are undertaken on ...
...full-6.year basis. Furthermore, audits for income tax
and sales tax for the same financial or tax year are
undertaken concurrently, the demand in case of
sales tax may get time-barred one to two years
earlier as compared to demand for income tax. In
order to streamline....
...the said provision, the words “relevant date”, is proposed to be changed with the words “end of the financial year in which the relevant date falls”
#Budget2021 #C4S
5- A new sub-section 25AA(2) is added to provide enabling provision in the Act for prescribing rules for
determining transfer pricing of taxable supplies between associates to reflect fair market value in arm’s length transactions. #Budget2021 #C4S
6- Section 22(1) has been amended to strengthen and
streamline the requirement of record keeping.
#Budget2021 #C4S
7- In section 50 (2) Procedure for collection, arrangement and publishing of the rules issued under Sales Tax Act, 1990 has been streamlined.
8- S. No. 18 of Table-II of Sixth Schedule to the Sales
Tax Act, 1990 which grant exemption to marble and
granite manufacturers having annual turnover less
than Rs. 5 million, is proposed to be omitted. The
said exemption is already available under section
2(5AB) of the SalesTax
Act, 1990.
9- S. No. 19 and 20 of Table-II of the Sixth Schedule is being omitted as Exemption on bricks and crush stones has already expired on 30th June, 2018. Accordingly, these serial numbers are proposed to be omitted being redundant.
#Budget2021 #C4S
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More from @C4Sconsultants

11 Jun
Withholding TAX u/s 153 , 231 & 236 have been proposed to be withdrawn in Finance Bill 2021-22:

1- Collection of tax on payment of royalty to residents has been removed.

2- Collection of tax on cash withdrawal has been withdrawn #Budget2021 #C4S
3- Collection of tax on banking instruments has been removed.

4- Collection of tax on banking transactions other than through cash has been withdrawn.
#Budget2021 #C4S
5- Collection of tax from persons remitting amounts abroad through credit or debit or prepaid cards has been withdrawn.

6- Collection of tax on domestic and international air travel has been abolished.
#Budget2021 #C4S
Read 6 tweets
11 Jun

1- Special regime for export of services at par with export of goods to be taxed @ 1% under final tax regime.

2- Elimination of block taxation of property income and shift to normal tax regime.

#Budget2021 #C4S
3- Reduction of block taxation on capital gain on disposal of immoveable properties if gain exceeds Rs. 20 million.

4- Reduction in block taxation on interest income, if it exceeds Rs. 5 million.

#Budget2021 #C4S
5- Tax on “on” money on vehicles, if vehicle is disposed without registration.

6- Expansion of scope of withholding tax collection from supply chain below manufacturers and importers of specified sectors (sections 236G and 236H).
#Budget2021 #C4S
Read 7 tweets
11 Jun

1- In order to facilitate the people of tribal area and encourage investment and economic growth in these areas, exemption is being given from levy of FED to the industrial units located in FATA and PATA.
#Budget2021 #C4S
2- The provision to revise return without prior approval of the Commissioner-IR which is available in Sales Tax Act, 1990 is now proposed to be made available in Federal Excise Act, 2005. #Budget2021 #C4S
3- Exemption from federal excise duty to 4-wheelers granted vide granted vide Tax Laws (Amendment) Ordinance, 2021 is proposed to be incorporated in the Federal Excise Act. #Budget2021 #C4S
Read 9 tweets
11 Jun
As a RELIEF MEASURES in Sales Tax Below amendments/ Changes have been proposed;

1- The minimum annual threshold of turnover from all supplies for cottage industry is proposed to be increased from Rs. 3 million to Rs. 10 million.
#Budget2021 #C4S
2- The threshold of shop area in case of furniture outlet/showrooms is proposed to be increased from 1000 square feet to 2000 square feet for inclusion in tier1 retailer.

3- Public limited companies are proposed to be excluded from the purview of section 8B. #Budget2021 #C4S
4- A separate section introduced for allowing extension of time for furnishing of return.
5- Exemption is proposed to be granted to art and printing paper for publication and printing of Holy Quran.
Read 17 tweets
11 Jun
The proposed budgetary measures pertaining to SALES TAX for FY 2021-22 are:

To increase revenue from indirect taxes following measeures have been proposed;
1- The sale of goods through online market place is proposed to be brought into----

#Budget2021 #C4S
the sales tax net by deeming the online market place as supplier in respect of third party sales through their platform.

2- For specified goods, it is proposed that it may be made mandatory for manufacturers of such goods to obtain brand license for each separate brand or SKU.
3- Section 56C provides for prize scheme to promote tax culture. To ensure that the said incentive is not misused, a new sub-section is proposed to be inserted to provide for randomize “mystery shopping”.
#budget2021 #C4S
Read 9 tweets
11 Jun
Few ENFORCEMENT FEATURES have been proposed to include in CUSTOMS ACT 1969;

1- Inclusion of master bill of lading and certificate of origin in the existing definition of document to discourage origin fraud.
#Budget2021 #C4S
2- Inclusion of the retailing in definition of smuggling to discourage retailers from selling smuggled goods.
#Budget2021 #C4S
3- Making shipping lines responsible for re-export of banned items imported in commercial quantities.
#Budget2021 #C4S
Read 5 tweets

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