FBR extends tax payment date

The Federal Board of Revenue (FBR) for the third time has extended the date for payment of taxes / duty for the tax period August, up to 20th September, 2011. In a letter issued here on Thursday, lnland Revenue Wing of the FBR has communicated to all Chief Commissioners of Large Taxpayer Units (LTU) and Regional Tax Offices (RTO) that the date for payment of taxes / duty has been extended up to 20th September, 2011 and that this extension in date is for the tax period August 2011 and is applicable to all registered persons.
This 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 (SRB) were also in the process of deliberations on the issue of Federal Excise Duty (FED) on financial services to which FBR has agreed to abolish the FED on financial services by the centre. FBR has sought an assurance letter from SRB about having the capacity to collect due taxes without facing any hindrances.
FBR and SRB have agreed to hold more meetings to resolve the problems. 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. 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 to divide services into three categories. These were to be delegated by provinces to FBR for collection.