MONTHLY UPDATES JULY, 2021
Transcript of MONTHLY UPDATES JULY, 2021
RIAZ AHMAD, SAQIB, GOHAR & CO.
Chartered Accountants
MONTHLY UPDATES JULY, 2021 - INCOME TAX LAWS
- SALES TAX LAWS
A member of
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Preamble:
Riaz Ahmad, Saqib, Gohar & Co. Chartered Accountants is pleased to present herewith its “Tax Updates”
for the month of July, 2021. This document aims to provide an update with respect to the changes in the
Income Tax Ordinance, 2001 (the Ordinance) and the Sales Tax Act, 1990 (the Act) and related rules
therein, introduced through various SROS/circulars issued during the month of July, 2021.
Disclaimer: This memorandum is prepared to the best of our knowledge and belief. It is intended to
provide only a general outline of the matters covered in the document. It should neither be regarded as
comprehensive nor sufficient for decision making purposes nor should it be used in place of professional
advice. Riaz Ahmad, Saqib, Gohar & Co. Chartered Accountants does not accept any responsibility for
any loss arising due to any action taken or not taken by the readers of this publication.
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UPDATES PERTAINING TO FEDERAL INCOME TAX LAWS –
ISSUANCE OF FINALIZED INCOME TAX RETURN FORM – SRO 835(I)/2021:
The Federal Board of Revenue through its SRO 835(I)/2021 dated July 01, 2021 has issued the finalized
form for filing of income tax return for the tax year 2021.
Any taxpayer can now login to Its online IRIS Portal and file its income tax return for the tax year 2021.
APPOINTMENT OF FIRM OF CHARTERED ACCOUNTANTS FOR SPECIAL AUDIT PANELS:
The Federal Board of Revenue has issued a letter to the President of the Institute of Chartered
Accountants (ICAP) of Pakistan bearing Ref. No. 3(5)SS(TPA)/2021/104915-R dated July 16, 2021
requesting ICAP to provide a list of firms which are willing to provide their services for the purpose of
performing audits under the Ordinance and the Act.
This correspondence has been made in light of the new e-audit rules issued by the Federal Board of
Revenue previously.
NON-EXTENSION OF DUE DATE FOR FILING OF INCOME TAX RETURN FOR THE TAX YEAR 2021:
The Federal Board of Revenue has issued a letter to the Chief Commissioners of all LTOs, MTO, CTOs and
RTOs in Pakistan bearing Ref. No. 4(34)Rev Bud/2020 dated July 26, 2021 that the due date for filing of
income tax return for individuals, Association of Persons (AOPs) and Companies for the tax year 2021
being September 30, 2021 shall not be extended this year.
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UPDATES PERTAINING TO FEDERAL SALES TAX LAWS –
CHANGE IN SALES TAX RATES PERTAINING TO PETROLEUM PRODUCTS – SRO 860(I)/2021 & SRO
937(I)/2021:
The Federal Board of Revenue through its SRO 860(I)/2021 dated July 06, 2021 and SRO 937(I)/2021 dated
July 26, 2021 has amended the rate of chargeability of sales tax on petroleum products and the applicable
rates are illustrated in the table below, chronologically:
S.No. Description July 01, 2021 to July 15, 2021
July 16, 2021 onwards
1. MS (Petrol) 16.40% ad valorem 10.77% ad valorem
2. High speed diesel oil 17.00% ad valorem 17.00% ad valorem
3. Kerosene 6.70% ad valorem 6.70% ad valorem
4. Light Diesel oil 0.20% ad valorem 0.20% ad valorem
VALUATION OF SUGAR FOR THE PURPOSES OF SALES TAX – SRO 895(I)/2021:
The Federal Board of Revenue through its SRO 895(I)/2021 dated July 08, 2021 has rescinded its SRO
812(I)/2016 dated September 02, 2016.
The rescinded SRO had fixed the valuation of domestically produced white crystalline sugar and imported
white crystalline sugar for the purpose of chargeability of sales tax at Rs. 60 per KG and USD 725 per MT
respectively.
However, now the above SRO has been rescinded indicating that sales tax will now be charged at the
transaction value of sugar.
EXEMPTION ON IMPORT OF FACE MASKS – SRO 952(I)/2021:
The Federal Board of Revenue through its SRO 952(I)/2021 dated July 28, 2021 has exempted the import
of thirty million adult 3xply knit face masks as donation by M/s. Hanes Brands Inc. North Carolina, USA to
the Government of Punjab.
The above SRO has been issued to exempt the donation received from the chargeability of sales tax.
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