ASSIGNEMENT

Subject: production operation management

Topic:

Report on FBR website

Submitted to: Pro. Arif Hussain Ajaz

Submitted by:

SUPERIOR UNIVERSITY LAHORE

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Dedication
We dedicate all our efforts to the Holy Prophet (PBUH); who showed us honest ways of business, social justice and dignity of work through His deeds.

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Acknowledgment
All the praises are for Allah who is the master of judgment day and who is Merciful, Beneficent to His creation. We have the pears of my eyes to admire blessing of the compassionate and omnipotent because of the words are bound, knowledge is limited and time is short to express His dignity. We offer our humblest thanks from the deepest core of our heart to the Holy Prophet Hazrat Muhammad (PBUH) who is forever a model of guidance and knowledge of humanity. We wish to express our deep sense of gratitude to our worthy Sir. Arif hussain ajaz for his cooperation, valuable guidance and supervision under which this project has been completed. We are also thankful to our deer class fellows for their help, association, good wishes and encouragement, which enable us to complete this project. We specially acknowledge all the persons who helped and support us in regard to provide information for completing this report.

Table of Contents
Federal Board of Revenue ..................................................................................................................... 4 Functions of FBR/Revenue Division: ....................................................................................................... 8 Organizational Chart of the FBR:............................................................................................................. 8 Superior university Lahore Page 3

Forms: ..................................................................................................................................................... 9 Income tax: .......................................................................................................................................... 9 Sale tax:............................................................................................................................................. 10 Information service: ............................................................................................................................... 11 Sale tax.................................................................................................................................................. 16 Introduction: .................................................................................................................................. 16 Liability of sale tax:........................................................................................................................ 17 Registration: .................................................................................................................................. 17 Return: ........................................................................................................................................... 18 Maintenance of Records: ................................................................................................................ 18 Refunds of Sales Tax:..................................................................................................................... 18 Documents Related To Sales Tax: .................................................................................................. 19 Sales Tax ACT 1990: ..................................................................................................................... 20 FBR Taxpayer Facilitation Portal: .................................................................................................. 22 Sale tax SROs:.............................................................................................................................. 24 Income tax ............................................................................................................................................. 25 Categories of income tax payer: ..................................................................................................... 25 Income tax ordinance:................................................................................................................... 26 Income tax rules:............................................................................................................................ 27 Statutory Regulatory Orders: .......................................................................................................... 28 Income tax schedule and calendar: ................................................................................................. 29 Calculation of quarterly installment:............................................................................................... 30 Federal Excise Duty ..................................................................................................................... 31 Federal excise duty act: ................................................................................................................. 32 Conclusion: ........................................................................................................................................... 36 References: ........................................................................................................................................... 37

Federal Board of Revenue

Introduction:
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The Central Board of Revenue (CBR) was created on April 01, 1924 through enactment of the Central Board of Revenue Act, 1924. In 1944, a full-fledged Revenue Division was created under the Ministry of Finance. After independence, this arrangement continued up to 31st August 1960 when on the recommendations of the Administrative Re-organization Committee, FBR was made an attached department of the Ministry of Finance. In 1974, further changes were made to streamline the organization and its functions. Consequently, the post of Chairman FBR was created with the status of ex-officio Additional Secretary and Secretary Finance was relieved of his duties as ex-officio Chairman of the FBR.

In order to remove impediments in the exercise of administrative powers of a Secretary to the Government and effective formulation and implementation of fiscal policy measures, the status of FBR as a Revenue Division was restored under the Ministry of Finance on October 22, 1991. However, the Revenue Division was abolished in January 1995, and FBR reverted back to the pre-1991 position. The Revenue Division continues to exist since from December 01, 1998. By the enactment of federal 2007 in July 2007 the central board of revenue has now become federal board of revenue.

To be a modern, progressive, effective, autonomous and credible organization for optimizing revenue by

providing quality service and promoting compliance with related tax laws.

Mission:
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To enhance the capability of the tax systemPage 5 to collect due taxes through application of modern techniques, providing taxpayer assistance and by

Integrity professional team work courtesy professional team work courtesy responsiveness transparency fairness

Main Page of FBR web site:

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This picture shows the main page of fbr web site that includes all the detail relating to the income and sale tax. It includes all information about establishment of FBR. All about the functions of FBR, chairman information, members of the board, its act rules and ordinance.

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Functions of FBR/Revenue Division:

In the existing setup, the Chairman, FBR, being the executive head of the Board as well as Secretary of the Revenue Division has the responsibility for Formulation and administration of fiscal policies, Levy and collection of federal taxes and Quasi-judicial function of hearing of appeals. His responsibilities also involve interaction with the offices of the President, the Prime Minister, all economic Ministries as well as trade and industry.

Organizational Chart of the FBR:

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Forms:
This option of FBR website includes the forms relating to the following; Income tax Sale tax Federal excise

Income tax:
In the form option first head is income tax. It includes all the forms of income tax. It includes the following more points. Returns forms Declaration by salaried persons Refund application form CVT 1 form

Return Forms:
It includes the following three types of return forms;

We can download return form by clicking on the links. Some forms we attach below.

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Sale tax:
In the next option sale tax there is three types of form are available; Sales tax cum-federal-excise return Sale tax input challan ST Sale tax registration form It includes more other forms but I am providing only one form in this report;

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Information service:
The website of FBR provides the option of information service it includes the information services relating to income tax, sale tax, and custom. If we go in the website under the head of information services following links are showed; Sale tax Income tax Custom

Sale tax:
If we click on the sale tax option it provides the following more options; Apply for Registration Number Check registration application status Register units (check registered tax payers information) Active tax payer list

Apply for Registration Number:

If we click on the first option then the following page is open for apply registration number we can apply online through FBR website for registration number.

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Check registration application status:

If we click on the second option that is check registration application status by using this option we can check the registration application status online through this website.

Register units (check registered tax payers information):

The third option under the sale tax information service is register unit through this we can online check the registered tax payer information. When we click on this option the following page will be open. By fill this form we can check the required information.

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Active tax payer list:

This option provide the active tax payer list. When we click on this option the following page open. We can acquire information by filling the following form online.

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Income Tax:
This is the second option that is provided in the website under the head of information services it include the following more options. Online NTN verification system Apply for NTN number The detail is given below.

Online NTN verification system:

When we click on this option a new webpage is open. Where from we can verify NTN by filling the following form that is provided on the website.

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Apply for NTN number:

We can online apply for NTN number through the FBRwebsite. When we click on this link a new webpage is open and here an online form is provided. By filling this form we can apply for national tax number.

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Sale tax
Introduction: Sales Tax was a provincial subject at the time of partition. It was being administered in the provinces of Punjab & Sindh as provincial levy. Sales tax was declared a federal subject in 1948 through the enactment of General Sales Tax Act, 1948 and in 1952; this levy was transferred permanently to the Central Government. Sales tax was levied at the standard rate of 6 pies per rupee at every stage whenever a sale was affected. The trading community protested against this system, and this resulted in the enactment of Sales Tax Act1951.

A system of licensed manufacturers & wholesalers was instituted whereby they were allowed to purchase goods free of sales tax from each other and pay tax on sales to unlicensed traders. Imports were chargeable to Sales Tax but the licensed manufacturers & wholesalers were allowed to import goods without the payment of Sales Tax. Later on Sales Tax became chargeable on locally produced & imported goods at the time of their sales & import, respectively. The sales tax was collected under the Finance Ordinance, 1956, on goods which were chargeable to Central Excise Duty, as if it were a duty of Central Excise. In April 1981, by virtue of an amendment in the Sales Tax act, 1951, The collection of Sales Tax on non-excisable goods was also entrusted to the Central Excise Department.

In the late eighties the government decided to replace Sales Tax with the Value Added Tax in the country as a part of its structural adjustment program which was undertaken to correct anomalies & distortions both in our tax & non-tax regimes. Accordingly new enactment titled Sales Tax Act 1990 replaced Sales Tax Act 1951 with effect from 1-11-1990.

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Liability of sale tax:

Following sectors are required to get registration for sales tax and charge sales tax on their supplies/ services: Manufacturing Import Services Distribution, (Wholesale & Retail stage).

Previously it was being charged at the manufacturing & import stage, and its scope has been extended now to remaining sectors. Sales Tax is chargeable on all locally produced and imported goods except computer software, poultry feeds, medicines and unprocessed agricultural produce of Pakistan and other goods specified in Sixth Schedule to The Sales Tax Act, 1990.

Registration:
Every person in sectors mentioned above, who makes a taxable supply in Pakistan is required to be registered under the Sales Tax Act. However, manufacturers having taxable turnover below five million rupees and also utility bill below Rs. 700000 during the last twelve months are exempted from registration and payment of sales tax. Similar exemption is also available to retailers having total turnover below Rs. five million in the last twelve months. The rate for sales tax is 17% of value of supplies. However, there are some items which are chargeable to sales tax at 18.5% or 21% of value of supplies (see SRO 644(I)/2007 as amended by SRO 537(I)/2008 dated 11th June 2008) The Registration Form(s) are submitted to the Central Registration Office, FBR, or Sales Tax Collectorates/ RTOs for the allotment of a Registration Number by the persons liable to be registered under the Sales Tax Act. The taxpayer is then issued a Certificate of Registration.

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Return:
As per law each registered person must file a return by the 15th of each month regarding the sales made in the last month.

All registered persons are required to file returns electronically and in such cases the payment is to be made by the 15th and return can be submitted on FRBs e-portal by 18th. Detailed procedure in this respect is given in Sales Tax General Order no. 04 of 2007.There are some sectors which are required to file returns on quarterly (tri-monthly) basis e.g. retailers including dealers of specified electric goods and CNG dealers.

Maintenance of Records:
All registered persons are required to maintain records at their business premises of the goods purchased and supplied made by them. All the records are required to be kept for a period of 5 years.

Refunds of Sales Tax:

In cases where the Input Tax exceeds the Output Tax due from the registered person in respect of a tax period because of exports or other zero-rated supplies, the excess amount of input is refunded back to the taxpayer within 45 days. In all other cases of excess input tax, the Board can specify the procedure for refund.

Additional Tax:
If a registered person does not pay the tax within the specified time or claims a tax credit or refund which is not admissible to him, or incorrectly applies the rate of zero percent to the supplies made by him, he has to pay the additional tad at the following rates. One and half percent of tax due or the part thereof per month; However, in case of tax fraud, the rate of additional tax shall be two percent per month. ARREARS: The work regarding Arrears gets initiated in the following cases: Late or no submission of the Returns Amount paid is less than the tax amount payable A demand rose after an audit/ scrutiny is upheld after adjudication.

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Now we shall see some of the important documents regarding sales tax which are available on the website. We may also see the various links leading us to these documents.

Documents Related To Sales Tax:

Various documents are available on the website related to sales tax. The figure below shows the link that will lead us to these documents on the website.

As one can clearly see that there are several documents on the website which relate to sales tax. The link that will lead us to these documents can be clearly seen in the figure above. The most important document related to sales tax is sales tax act 1990. This link also contains the documents for sales tax rules and sales tax procedures. All these documents are a useful source of information on this website.

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Sales Tax ACT 1990:

The figure below shows the link for sales tax act 1990 and this document is available in various formats.

As shown in the above figure there is three different documents available on this link that can be accessed by the users. The first document is an older version of the act whereas the other two are the amended versions of the act. These documents can be easily accessed on the website by using the link shown in the above figure. Now we may look at the information regarding RGST which is a form of value added tax in Pakistan.

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Reformed General Sales Tax:

Reformed GST is a form of VAT in Pakistan. The documents available on the website in this regard are shown in the figure below:

This figure shows that there are documents available on the website related to RGST which can be used as a source of information by the users. There is a brief on RGST available that explains about the tax. This can be used as a source to understand this tax in a better way by the users. There is also an RGST bill 2010 which was to be presented in the parliament but was not done so. Now we shall see some services provided to the taxpayers by FBR.

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FBR Taxpayer Facilitation Portal:

Now we shall look at some services provided by the taxpayer facilitation portal of the federal board of revenue. The horizontal links on the homepage can lead to this service. The figure below shows the portal:

This figure shows the web portal of FBR. The web portal provides information regarding registration of taxpayers. The tax returns can also be filed using this web portal. The information regarding payment of surcharge is also on this portal.

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Sale tax rules:

There are three types of rules provided in this website like; Sale tax rules2006 Sale tax special procedure rule 2007 Sale tax special procedure withholding rule 2007 If we click on first option then the following page will be open.

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Sale tax SROs:

There are many sale tax SRO. When we click on this link the following page is open;

We can download SRO by clicking on the above links. For example

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Income tax
Introduction: Taxation according to a persons ability to pay is universally accepted principle, and income is considered a satisfactory though not a sufficient index of such ability to pay. Income Tax is, therefore, generally recognized as a highly equitable form of taxation. A tax levied on income neither can nor normally is shifted to others and thus its incidence is on those for whom it is intended. Since income tax is progressive in nature, it tends to reduce economic disparity. Tax rates and method of calculating taxable income varies with fiscal status of the tax payer. Following are the broad categories of taxpayers; Categories of income tax payer: Companies Association of Persons (AOP) Non Salaried Individuals Salaried individuals Capital value tax: It is payable by individuals, firms and companies which acquire an asset by purchase or a right to use for more than 20 years. Corporate asset tax: It is levied through section 12 of the Finance Act, 1991. This is one time levy payable by a company as defined in Companies Ordinance, 1984, on the value of fixed assets held by the company on the "specified date".

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Income tax ordinance:

As the following figure shows that the income tax ordinance 2001 is available on the website. We see that there are two different documents available, the first one is an updated document whereas the other one is an old. These documents can be downloaded in desirable formats and can be used. To download these documents we have to click on more details as shown in the above figure. This figure also shows what other documents are available on this website regarding income tax. We shall discuss these one by one.

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Income tax rules:

This figure shows the link for income tax rules 2002. We can see that the document available is as amended up to 2008 and the document can be downloaded simply by clicking on more detail as shown in the above figure. We shall now see some more documents available on the website regarding income tax. These include the SROs related to income tax. The link through which these SROs can be accessed is shown in the figure below;

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Statutory Regulatory Orders:

The above figure shows the list of SROs available on this website regarding income tax. This link contains SROs from 1991 up till today. These statutory regulatory orders are related to income tax only. For sales and excise tax the SROs are provided separately on other links. These can be downloaded in desirable format from this link. It is also noticeable that the code and the date of issue of any particular SRO can also be seen in the above figure. Now we shall see the calendar for income tax which shows the starting and ending of the tax year for a given taxpayer.

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Income tax schedule and calendar:

The following figure shows the schedule for the payment of income tax.

As shown in the above figure, in the case of an individual or an AOP the quarterly installment of the tax is to be paid on the 15th of the last month of the quarter. However, in the case of a company the installment is to be paid till the 15th of the month next to the last month of the quarter. Now we shall see the procedure for the calculation of the quarterly installment as given in this website.

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Calculation of quarterly installment:

y

In the case of individual or AOP, whose last assessed income is at least 200,000. The amount of advance tax due for a quarter shall be computed according to the following formula, namely:-

(A/4) - B Where

A is the tax assessed to the taxpayer for the latest tax year or latest assessment year under the repealed Ordinance; and

B is the tax paid in the quarter for which a tax credit is allowed under section 168, other than tax deducted under section 149 or 155.

In the case of a company, the amount of advance tax due for a quarter shall be computed according to the following formula, namely:(A/4) - B

Where

A. is the tax assessed to the taxpayer for the latest tax year or latest assessment year under the repealed Ordinance; and

B. is the tax paid in the quarter for which a tax credit is allowed under section 168, other than tax deducted under section 149 or 155. Mandatory Estimation Of Tax Payable By The Companies For The Relevant Tax Year: Where the taxpayer is a company who is required to make payment of advance tax in accordance with sub-section (4) of section 147, shall estimate the tax payable by him for the relevant tax year, at

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any time before the last installment is due. In case the tax payable is likely to be more than the amount he is required to pay under sub-section (4), the taxpayer shall furnish to the Commissioner an estimate of the amount of tax payable by him and thereafter pay such amount after making adjustment for the amount (if any) already paid in terms of section 147(4) of the Income Tax Ordinance, 2001.

Federal Excise Duty

Introduction: The Federal Excise Act, 2005, was promulgated with effect from 1st July, 2005, repealing the Central Excises Act, 1944. Following are some of the significant changes brought about by the new Act:
y

The word Federal was used in place of Central. Therefore, now the term Federal Excise Duty is more appropriate as compared to old Central Excise Duty for the duties of excise levied under the 2005 Act.

The system of physical supervision has been entirely done away with and now all clearances will be self-assessed and no prior permission for clearance will be required.

The payment of duty will be on monthly basis and the duty on all clearances during the month will be payable by the 15th of next month. This is in contrast to previous requirement of payment of duty prior to clearance.

y y

No gate passes are required for clearances as in the old system. Double taxation has been eliminated by allowing adjustment of the excise duty paid on the input goods used directly in the manufacture of excisable goods.

On some services and goods FED is payable in VAT more i.e. in the same manner as provided in the Sales Tax Act, 1990. For details see the link Goods/Services Liable to Excise Duty on this page.

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Federal Excise duty is payable on:

a) goods produced or manufactured in Pakistan; b) c) goods imported into Pakistan; such goods as the Federal Government may, by notification in the official Gazette, specify, as are produced or manufactured in the non-tariff areas and are brought to the tariff areas for sale or consumption therein; and d) services, provided or rendered in Pakistan;

Special Excise Duty:

As part of budgetary measures for the year 2007-08, Special FED at 1% has been levied on goods which are manufactured or are imported in Pakistan. This duty is in addition to FED as prescribed in First Schedule of the Federal Excise Act, 2005. For list of goods excluded from purview of this special duty and other details see SRO 655(I)/2007.

Federal excise duty act:

The Federal Excise Act, 2005, was promulgated with effect from 1st July, 2005, repealing the Central Excises Act, 1944.

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Documents related to the federal excise duty:

Now we shall see some of the documents related to federal excise duty on this website. The foremost document regarding this tax is the federal excise act 2005. This document can be downloaded from the following link as shown in the figure.

This figure shows the link for downloading the document for federal excise tax. This can be downloaded in two different formats according to requirement.

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Federal excise circular:

The circulars related to federal excise tax are also available on this website. These can be seen on the links shown in the figure below.

As the figure shows that there are a number of circulars related to federal excise duty on this website. These circulars can be accessed by using the link shown in the figure. These circulars not only notify changes but are also used to circulate important information. These can be downloaded from the link by clicking on more detail and accessing the document.

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Federal excise return form:

We can download federal excise return form from the following links.

In the above figure all the forms relating to federal excise are available we can easily download federal excise return forms from here.

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Conclusion:
At the end we conclude this assignment. This is the comprehensive report on the federal board of revenue website. We can collect any information relating to tax. We can apply online for national tax number. We can check registration information. We can easily check the rules and regulation, acts and ordinance relating to FBR. So we can work at our pc through on line relating to any tax matters.

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References:
www.google.com www.fbr.gov.pk

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