Weekly Tips - Softax
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WEEKLY UPDATES (SROs, Circulars etc.) Weekly Tips Edition: 318 Issue: 04-04-17 C o n s u l t i n g | T r a i n i n g | W e b b a s e d T a x a t i o n S u p p o r t S e r v i c e s ْ َ ٰ ُ َ ٰ ْ َ َ ْ َ ْ َ َ َ ْ ٰ ُ ﻓﺎن ﷲ ﳛﺐ اﻟﻤﺘﻘﲔ اوﰱ ﺑﻌﻬﺪﻩ واﺗ ﺑﲇِ ِ ِ ِٖ ِ Surah Al-i'Imran, Ayat 76 Maulana Muhammad Joona Garhi ٰ ( ) Maulana Ishaq Madni ) ( ) ( ) ، ( ) ( Maulana Mahmood ul Hassan Deobandi ١ Maulana Fateh Muhammad Jalandhri ( ) Maulana Ahmad Ali Lahori Maulana Abul Aala Maududi ، ؟ ٓ Maulana Abdur Rehman Kilani [١۔٦٦] Maulana Taqi Usmani Why (will they) not (be blamed) ? Whoever fulfils his pledge and fears Allah, then, Allah loves the God‐fearing. Maulana Abdul Majid Daryabadi Aye whosoever keepeth his covenant and feareth Allah‐‐then verily Allah loveth the God‐fearing. Sahih International But yes, whoever fulfills his commitment and fears Allah ‐ then indeed, Allah loves those who fear Him. QUOTE OF THE WEEK Withholding tax collected or deducted from the payments made to non‐residents is required to be deposited before reming the amount on which the tax is withheld. For resident persons withholding tax is required to be deposited within seven days from the end of each week ending on every Sunday. Stakeholder A person, group or organizaon that has interest or concern in an organizaon. Stakeholders can affect or be affected by the organizaon's acons, objecves and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources. Income Tax : No Updates Sales Tax : SRO # 273(I)/2017 dated 20‐Apr‐2017 ‐ Sales Tax Shall be charged at rate of zero percent on the import of one hundred and fiy tonnes of dates gied by KSA GO # 63/2017 April 18, 2017 GO # 64/2017 April 18, 2017 GO # 65/2017 April 18, 2017 GO # 67/2017 April 19, 2017 GO # 68/2017 April 20, 2017 Lahore ‐ Karachi ‐ Islamabad ‐ Sargodha E: [email protected] | W: www.softax.com.pk Far and away the best prize that life has to offer is the chance to work hard at work worth doing. Theodore Roosevelt Queson: FED is collected by retailer while making Transfer of Money via Easy Paisa. Would this FED can be taken as Input while subming Sales Tax return under FBR, KPK and Punjab. Pls guide Answer: S.R.O 478(I)/2009 dated 13‐06‐2009 amended vide S.R.O 550(I)/2006 dated 05‐06‐2006 provided that the following banking services shall be treated as Sales Tax Mode Services u/s 7 of the Federal Excise Act, 2005: “Services provided or rendered by banking companies, insurance companies, cooperave financing sociees, modaraba, musharika, leasing companies, foreign exchange dealers, non‐banking financial instuons, Assets Management Companies and other persons dealing in any such services.” If such tax falls under this regime then it is adjustable against sales tax output. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Queson: We received noce from tax office regarding we taken export refinance short term loan from two different banks that your loan is outstanding from more than 3 years so it is inadmissible u/s 34(5) i think so it is not deducted as expenditure so why they charge it taxable. need your advice how we tackle the situaon also menoned secon or reference. Answer: Secon 34(5) is not applicable on bank loans. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Queson: A Telecom Company built the Tower sites where Civil Work Executed and aer compleon of work this site is treated as Asset ( Building) in Books. 1) Would the Construcon Material( Sand, Crush, Cement, Steel) used in the Building is aracng the WHT Deducon where Purchasing form Dealers.2) What are the consequences as per Law if WHT is not Deducted. Answer: No such exempon is available, in case of non‐deducon, the department will collect form your company u/s 161. ١۴ ٧١ ٢٩٧ : : ٓ ٓ ٰ ، ، ، ٓ ؟ BUSINESS TERM OF THE WEEK TAX TIP OF THE WEEK MEMBERS QUERIES
Transcript of Weekly Tips - Softax
WEEKLY UPDATES (SROs, Circulars etc.)
Weekly TipsEdition: 318
Issue: 04-04-17
C o n s u l t i n g | T r a i n i n g | W e b b a s e d
T a x a t i o n S u p p o r t S e r v i c e s
� � � � بلي � اوفى بعهده وات� فان الله يحب المتقين�
Surah Al-i'Imran, Ayat 76Maulana Muhammad Joona Garhi
� �� � �������� ��� � �� ��� � �� ���� �� ������ �� ����� ������ ��� � � ��� (�� ��� ���) � ��
�� ���� � �
Maulana Ishaq Madni
�� �� � � � � �� �� �� ���) ��� ������� ������ � ����� � � ��� � � � (� � � ����� �� � �� ) � �� (������ ��� ���)� �� �� ���،� �������� ��� � ��� �� � ��� (� � � ��� ���) ��� � (�� �
Maulana Mahmood ul Hassan Deobandi
�١� � �������� � � � ��� � � ����� ��� ������ ������ ��� �� ����� �� � � ��
Maulana Fateh Muhammad Jalandhri
� � � �� �� �� � � �� ��� �� � ���� � ������ ����� ���� � ����� (����� ) ������ �� ����� � ������ �� ��� � � ��
Maulana Ahmad Ali Lahori
�� ���� ��� ��� �� � ���� � �������� � � ������ � ��� ������ � ����� � ��� � � � �� � �� ����
Maulana Abul Aala Maududi
� ���،�� �� � ��� ��� � ��� � � � ����� �� �� ��� � ����� �� � ��؟ � � ��� � � ����� �� � ������ �� �
Maulana Abdur Rehman Kilani
� ������ � � � � � � � ��� � � �� � � ����� � ������ ��� � [٦٦۔١] ���� � � ��� ��� � �� ������ �
�� ���� �
Maulana Taqi Usmani
Why (will they) not (be blamed) ? Whoever fulfils his pledge and fears Allah, then, Allah loves the God‐fearing.
Maulana Abdul Majid Daryabadi
Aye whosoever keepeth his covenant and feareth Allah‐‐then verily Allah loveth the God‐fearing.
Sahih International
But yes, whoever fulfills his commitment and fears Allah ‐ then indeed, Allah loves those who fear Him.
QUOTE OF THE WEEK
Withholding tax collected or deducted from the payments made to non‐residents is required to be deposited before remi�ng the amount on which the tax is withheld.For resident persons withholding tax is required to be deposited within seven days from the end of each week ending on every Sunday.
StakeholderA person, group or organiza�on that has interest or concern in an organiza�on. Stakeholders can affect or be affected by the organiza�on's ac�ons, objec�ves and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources.
Income Tax :No Updates
Sales Tax : SRO # 273(I)/2017 dated 20‐Apr‐2017 ‐ Sales Tax
Shall be charged at rate of zero percent on the import of one hundred and fi�y tonnes of dates gi�ed by KSA
GO # 63/2017 April 18, 2017 GO # 64/2017 April 18, 2017 GO # 65/2017 April 18, 2017 GO # 67/2017 April 19, 2017 GO # 68/2017 April 20, 2017
Lahore ‐ Karachi ‐ Islamabad ‐ SargodhaE: [email protected] | W: www.softax.com.pk
Far and away the best prize that life has to offer is the chance to
work hard at work worth doing. Theodore Roosevelt
Ques�on: FED is collected by retailer while making Transfer of Money via Easy Paisa. Would this FED can be taken as Input while submi�ng Sales Tax return under FBR, KPK and Punjab. Pls guide
Answer: S.R.O 478(I)/2009 dated 13‐06‐2009 amended vide S.R.O 550(I)/2006 dated 05‐06‐2006 provided that the following banking services shall be treated as Sales Tax Mode Services u/s 7 of the Federal Excise Act, 2005: “Services provided or rendered by banking companies, insurance companies, coopera�ve financing socie�es, modaraba, musharika, leasing companies, foreign exchange dealers, non‐banking financial ins�tu�ons, Assets Management Companies and other persons dealing in any such services.”If such tax falls under this regime then it is adjustable against sales tax output.
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Ques�on: We received no�ce from tax office regarding we taken export refinance short term loan from two different banks that your loan is outstanding from more than 3 years so it is inadmissible u/s 34(5) i think so it is not deducted as expenditure so why they charge it taxable. need your advice how we tackle the situa�on also men�oned sec�on or reference. Answer: Sec�on 34(5) is not applicable on bank loans.
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Ques�on: A Telecom Company built the Tower sites where Civil Work Executed and a�er comple�on of work this site is treated as Asset ( Building) in Books. 1) Would the Construc�on Material( Sand, Crush, Cement, Steel) used in the Building is a�rac�ng the WHT Deduc�on where Purchasing form Dealers.2) What are the consequences as per Law if WHT is not Deducted.
Answer: No such exemp�on is available, in case of non‐deduc�on, the department will collect form your company u/s 161.
� � �� �� �١۴ � � ٢٩٧ �� ��� ������ ٧١ � ��:����� �:� �� � � � ��� �� �� ����� � ���� ������ � �� � ��� �� ��� � ��� � ��� ���� � ���� � �� �� � � � ������ � �� �� ��� ��� � ��� �� ،���� ،�� ،� � ��
� � � � � ��� ���� � ���� � � ������ ������ � � ������ ����� �� � � ������ � � ���� � ������ � ��� �� ����� � � � �؟ � ���� ��� � ��� � ��� �� ��� �
� ����� ������ ������ � � � � � �� ��� ������ �� � � � �� � � �� ��� � ��� ������ � � ���� ��� � � � �� ���� � ��
BUSINESS TERM OF THE WEEK
TAX TIP OF THE WEEK
MEMBERS QUERIES
