The Federal Board of Revenue (FBR), on Friday, has extended the due dates for filing of Income Tax Returns for the tax year 2011. FBR has also extended the dates for payment of taxes and duties and for filing of Sales Tax and Federal Excise Duty returns for the period July 2011.
In a notification issued, the Inland Revenue Wing of FBR has announced the extension in the dates according to which, the date for filing of returns of total income and statements of final taxation, due on August 31, 2011, has been extended up to September 30, 2011. Moreover, for filing of returns of total income and statements of final taxation that were due on September 30, 2011, the due date has been extended up to October 31, 2011. This extension has been given in exercise of the powers conferred under section 214-A of the Income Tax Ordinance, 2011. The Inland Revenue Wing of the FBR has communicated to all Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) that the date for payment of taxes and duties has been extended up to August 30, 2011 w
This extension of date is for the tax period July 2011, and is applicable to all registered people. Extension has been given in exercise of the powers conferred under section 74 of the Sales Tax Act 1990 and section 43 of the Federal Excise Act 2005. FBR and Sindh Revenue Board were in the process of deliberation on the issue of Federal Excise Duty (FED) on financial services, to which FBR has agreed on abolishing the said duty by the centre.
The FBR has sought an assurance letter from SRB about sufficient capacity to collect taxes that are due without facing any problem.
The issue would soon be settled between FBR and SRB, said FBR member Inland Revenue Khawar Khurshid Butt. FBR and SRB have agreed to hold more meetings to resolve the problems and the first meeting in this regard would be held after Eid.
Under the 1973 Constitution, the GST on goods is the jurisdiction of the federal government, while GST on services is the domain of the provinces.
hile the date for filing of Sales Tax and Federal Excise Duty returns has been extended up to September 10, 2011.
According to the minutes of Record Note among the center and provinces signed on September 30, last year, keeping in view the constitutional obligations, it was agreed upon to divide services into three categories. Firstly, there are the standalone services, those that neither involve transactions across provinces nor comprise of a significant proportion as inputs into other supplies.
The second category is that of the General Sales Tax (GST) on telecommunication services to be levied under provincial legislation in a single return and single audit mode to be managed by the FBR with returns and audit data shared with provinces.
Thirdly, there are services that require input and output adjustments that constitute a significant proportion as inputs into supplies or involve transactions across provinces. These shall be delegated by provinces to FBR for collection. Currently these include financial services, including banking, insurance and stock market operations, advertising services, construction services, franchising services and other services.
FBR will provide input and output adjustments and refund for services
in this group.
