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It is being sourced from FBR that sales tax registered persons would be providing details of Computerized National Identity card(CNIC) of buyers who are making purchases of more than fifty thousand rupees. The registered persons would be required to provide the details of CNIC to be mentioned in their monthly sales tax return which is to be filed for the month of February 2020 due on the 18th of March, 2020. Obtaining CNIC details of unregistered buyers has been made mandatory for sales tax registered persons. For this purpose, there has been an amendment made in Section 23 of the Sales Tax Act 2990 through the Finance Act, 2019. This condition had been made mandatory on supplies from 1st of August 2019 but the condition was deferred till 31st of January due to objections from stakeholders including small traders and shopkeepers. According to the sourced, it is the requirement for sales tax registered persons to obtain CNIC details of buyers, applicable from 1st February 2020 and to provide the same information in their monthly return of sales tax for the month of February 2020 is due on 18th March 2020. The condition would not be applicable to ordinary customers (The customers buying goods for their own use and not for resale or processing). In case the seller becomes unable to obtain the information of the buyer regarding CNIC, then the registered seller would be responsible. Also, FBR issued clarification order regarding CNIC condition through Sales Tax General Order No. 106 dated 4th of October 2019. It had been clarified by FBR that, in respect of taxable supplies to un-registered persons, CNIC/NTN shall be considered to have been reported in good faith by the suppliers and the condition that the invoice complies with statutory requirements should be met. It is also made mandatory for the payment that is being made by or on the behalf of the unregistered person to be deposited into the declared bank account of the supplier. The amount being deposited must be the same as that mentioned on the tax invoice. It is also compulsory that the CNIC being provided by the person making purchases to be found authenticated by the National Data and Registration Authority (NADRA). The provision of CNIC of Employee or of his associated is barred by FBR. On failure to comply with the above-mentioned requirements of obtaining CNIC by registered persons, the penalty would be imposed by tax authorities, said sources.

Reference:

https://pkrevenue.com/taxation/fbr-starts-obtaining-cnic-information-on-purchases-above-rs50000/

17 March 2020

On 13th of March 2020, there had been the issuance of notice from Government of Pakistan Revenue division, Federal board of revenue (FBR) Islamabad, discussing the condoning of time limit for filing of Annex-H for the tax periods of July 2019, August 2019, September 2019 and October 2019. The notice clearly mentioned the extension in the date of filling Annex-H for the above-mentioned tax periods up to 15th of April 2020

Reference:

http://download1.fbr.gov.pk/Docs/202031312339322762020-03-13(Annex-H).pdf

16 March 2020

Due to the threat imposed by the COVID-19 (corona Virus) and for the protection and wellbeing of shareholders, all the companies have been advised by the securities and exchange commission of Pakistan (SECP), for the modification of their usual planning of annual general meeting (AGM). Meeting to be held for the board of directors may also be conducted through tele/Video conferencing, provided that the minutes of such meeting are approved and subsequently signed by all the directors. All the companies are recommended by SECP to consider and evaluate the risks in the current situation. It is the requirement for every company to hold an annual general meeting (AGM) within sixteen months from the incorporation date of the company and thereafter, once in every calendar year, within 120 days from the close of the company’s financial year. As for the companies whose financial year ends in December, the AGM season is approaching, the usual planning for the AGM should be modified by the directors and secretaries, in light of the risk created by COVID-19 situation. Directors should give consideration to if the member can consolidate their attendances and voting at AGM into as few people as possible through proxies while quorum provision should be honored. Considering the geographical dispersion of its members, the company should be providing the facility of video links at different locations for the purpose of avoiding large gatherings. Basic protective measures including cleaning hands with sanitizers or soap and water should be taken by the company. Also, seats should be arranged at appropriate distances to ensure the security of the members. Furthermore, chairman or the members present in person through a video link or through proxy having voting power not less than one-tenth of the total voting power can consider voting through postal ballots by demanding polls for resolutions. This is being considered as a safer option in the current situation. The member of a private company or public unlisted company (having not more than 50 members), may, by circulation signed by all the members, pass a resolution (ordinary or special) for the time being entitled to receive notice of a meeting to be conducted in annual general meeting (AGM) except for the ordinary businesses specified under sub-section (2) of section 134 of companies act, 2017.

Reference:

https://www.secp.gov.pk/wp-content/uploads/2020/03/Press-Release-March-11-Coronavirus-contingency-planning-for-general-meetings.pdf

14 March 2020

11 March 2020