Page 37 - Newsletter-March-2018

Governance, Transparency and Service to Members & Students www.icap.org.pk ■ Delivered through two main areas of activity, both of imported raw and ginned cotton was part of exclusion which have a public interest focus: in Table-1 entry 2(g) which has been omitted. Before - Developing IPSAS and other high-quality financial this amendment, the raw and ginned cotton was part reporting guidance for the public sector; and of the exclusion in Table-1 of SRO 1125, which means - Raising awareness of IPSAS and the benefits of that applicability of SRO 1125 was from spinning stage accrual adoption.” onwards for textile sector. After this amendment, the benefit of SRO 1125 would be for import raw and ginned To develop standards on critical areas in public sector cotton onwards. However, for local supplies the benefit accounting IPSASB proposes to take on three new of the SRO would be from spinning stage onwards. major public sector specific projects: (i) accounting for natural resources; (ii) discount rates; and (iii) differential Transfer of Share of Common Input Tax to Other reporting. The deadline for responses is June 15, 2018. Registered Person in the Joint Venture By virtue of SRO 61(1)/2018 dated January 25, 2018, The document can be found at: an amendment has been made in Chapter-IV Special https://www.ifac.org/publications-resources/ipsasb- Procedure for collection and payment of Natural Gas, in proposed-strategy-and-work-plan-2019-2023 Rule, 20(2)(b), whereby in case of bore-hole or a well or gas field run by a joint venture, the person acting as operator Update: Tax SHC Judgement on Workers Participation Fund Honorable Sindh High Court (SHC) in its landmark judgement of Workers Participation Fund in C. P. No. D-1313 announced on February 12, 2018, passed the judgement in favour of government of Sindh. SHC has ruled that after the passage of the 18th Amendment to the Constitution, the Workers Profit Participation Fund Act (WPPF Act) 1968 has fractured automatically and became a provincial law. Accordingly, Sindh Revenue Did you know? Board (SRB) has advised to deposit left over amount of ‘Sindh Workers Participation Fund’ and contribution In Pakistan only about 1% of the population is of ‘Sindh Workers Welfare Fund’ as soon as possible to registered in the tax system, and the government avoid additional amount and penalties or prosecution under relevant provision of Sindh Workers Welfare collects just 9% of the country's wealth in taxes, Fund Act 2014 and Sindh Companies Profit Workers which is the lowest in the world. Participation Act 2015. may transfer the share of common input tax to other Revised Procedure for Filing of Appeals under registered person in the joint venture by issuing a credit Section 127 transfer note and the same will be available for adjustment The Federal Board of Revenue (FBR) has prescribed a of input tax to whom credit note issued. The input tax of revised procedure for filing of appeals by taxpayers the operator will be reduced by the credit note it has issued. to the Commissioner (Appeals) under which stay applications shall be disposed of by the Commissioner Launching of Offline Entry of Sales Tax Data (Appeals) within seven working days of fixation. In The FBR-IT Wing has launched IRIS-ADX (Asynchronous this regard, the FBR has issued SRO 162(1)/2018 dated Data Exchange), that is, an application that permits the February 9, 2018 to issue draft of certain further taxpayer/E-intermediary to prepare date related to amendments to the Income Tax Rules 2002. sales tax return including sales invoices, debit/credit notes and sales tax withholding documents in offline Imported Raw and Ginned Cotton in Table-1 has mode. With this application, the taxpayer will be able been Omitted to prepare sales tax invoices without having to be By virtue of SRO 46(1) of 2018 dated January 23, 2018, dependent upon internet. Hence, the issue related to an amendment has been made in the condition of internet connectivity, peak load, system downtime, SRO 1125(1)/2011 dated December 31, 2011 whereby etc. will have no effect on the efficiency of data entry. March 2018 37