RASG_Monthly_Tax_Update_April_2022

RIAZ AHMAD, SAQIB, GOHAR & CO.
Chartered Accountants

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Preamble:

Riaz Ahmad, Saqib, Gohar & Co. Chartered Accountants is pleased to present herewith its
monthly tax updates for the month of April, 2022. This document aims to provide an update with
respect to the changes in the Income Tax Ordinance, 2001 (the Ordinance) and the Sales Tax Act,
1990 (the Act) and related rules therein, introduced during the month of April, 2022 through
various SROs, Circulars and so on.

Disclaimer: This memorandum is prepared to the best of our knowledge and belief. It is
intended to provide only a general outline of the matters covered in the document. It should
neither be regarded as comprehensive nor sufficient for decision making purposes nor should
it be used in place of professional advice. Riaz Ahmad, Saqib, Gohar & Co. Chartered
Accountants does not accept any responsibility for any loss arising due to any action taken or
not taken by the readers of this publication.

Click here to download our android application for all the latest updates.

UPDATES PERTAINING TO FEDERAL INCOME Page |2
TAX LAWS –
EXPLANATION OF AMENDMENTS INTRODUCED
AMENDMENTS IN FBR VALUATION OF THROUGH THE INCOME TAX (AMENDMENT)
IMMOVABLE PROPERTY IN KARACHI – SRO ORDINANCE, 2022 – CIRCULAR 13 OF 2022:
548(I)/2022: The Federal Board of Revenue has through its
circular 13 of 2022 dated April 07, 2022 has
Through its SRO 548(I)/2022 dated April 23, issued explanations regarding certain important
2022, the Federal Board of Revenue has made amendments made through the Income Tax
certain functional amendments in its SRO No. (Amendment) Ordinance, 2022.
345(I)/2022 dated March 02, 2022 pertaining to We have already published a memorandum on
the valuation of immovable located in Karachi. the above amendments which can be excessed
through this link.
This has resulted in valuation rates of certain
immovable properties located in Karachi to be “This area left blank.”
amended.

DRAFT AMENDMENT PERTAINING TO
ELECTRONIC SERVICE OF CORRESPONDENCES –
SRO 549(I)/2022:

The Federal Board of Revenue through its SRO
549(I)/2022 dated April 23, 2022 issued draft
amendments to Rule 74 of the Income Tax Rules,
2002 for comments and feedback.

If these draft amendments are approved then a
document serviced to the electronic address of a
person shall be considered sufficient if sent to
that address.

In a country where breakdowns on the IRIS
portal is a common occurrence, relying solely on
electronic service of correspondence is
unjustified.

Moreover, the lack of awareness and know how
to operate the IRIS portal for the purpose of
extracting the said correspondence shall only
lead to taxpayers being condemned unheard on
the motion that an electronic notice was served.

UPDATES PERTAINING TO FEDERAL SALES TAX Page |3
LAWS –
1- Only eligible persons shall be allowed to avail
AMENDMENT IN VALUE OF SUPPLY OF STEEL the benefit of these rules. Eligible persons
AND IRON PRODUCTS – SRO 489(I)/2022: meaning manufacturers of agricultural
tractors who supplies tractors to a person
The Federal Board of Revenue has through its holding a valid proof of land holding such as
SRO No. 489(I)/2022 dated April 05, 2022 agricultural pass book and copy of record of
amended the rate of valuation of taxable supply rights of agricultural land duly verified from
of the following iron and steel products for the Provincial Land Revenue Authorities;
purpose of charging sales tax:
2- Refund claim shall be filed through
S.No. Goods Value (per STARR/RCPS and refund applicable shall be
Metric ton) moved to the concerned Commissioner
1. Steel bars and other Rs. 164,037 Inland Revenue along with relevant
long profiles documents;
2. Steel Billets Rs. 133,813
3. Steel Ingots/bala Rs. 126,000 3- Pre-refund audit shall be conducted to
4. Ship plates Rs. 129,584 ascertain the genuineness of the refund
5. Other re-rollable iron Rs. 125,688 amount claimed, where the officer deems
and steel scrap necessary;

AMENDMENTS IN FORM OF SALES TAX RETURN 4- In case pre-refund audit is conducted, the
– SRO 500(I)/2022: amount of excess input tax refund shall be
allowed and issued within seven days of
The Federal Board of Revenue has through its completion of the said audit;
SRO No. 500/(I)/2022 dated April 09, 2022 made
certain functional amendments to the form of 5- In case pre-refund audit is not conducted,
the sales tax return i.e. STR-7. then the amount of excess input tax refund
shall be allowed and issued within fifteen
ADDITION OF STEEL SECTOR TO ELECTRONIC days of filing of refund claim;
MONITORING/TRACING OF SPECIFIED GOODS –
SRO 541(I)/2022: 6- Post refund audit shall be conducted on the
basis of documents submitted and
The Federal Board of Revenue has through its concluded within sixty days;
SRO No. 541(I)/2022 dated April 26, 2022 made
amendments to Rule 150ZF of the Sales Tax 7- In order to assess that the incidence of
Rules, 2006 whereby “Steel Sector” has now excess tax has not been passed onwards to
been included in the list of specified goods which the final consumer, cost audit shall be
would be monitored and traced electronically. conducted by a cost accountant authorized
by the Board for twelve sales tax returns.
PROCEDURE FOR SALES TAX REFUND FOR
TRACTOR MANUFACTURERS – SRO 563(I)/2022: 8- An amount if found inadmissible shall be
recovered within seven days of completion
The Federal Board of Revenue has through its of post refund audit.
SRO No. 563(I)/2022 dated April 29, 2022 issued
procedures pertaining to sales tax refunds of
Tractor manufacturers which is as follows:

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