Latest news with #TaxonServices
Business Recorder
02-07-2025
- Business
- Business Recorder
ICT service providers: Businesses integration with FBR system mandatory
ISLAMABAD: The Federal Board of Revenue (FBR) has made it mandatory for large categories of service providers to integrate their sales tax businesses with the Board's computerized system for real-time reporting of provision of services from July 1, 2025. This has been mentioned in the updated Islamabad Capital Territory (Tax on Services) Ordinance, 2001. According to the updated Ordinance vide Finance Act 2025, from such date and in such mode and manner, as may be prescribed through a general order by the Board, any service provider as mentioned in Table 1 and Table 2 of the Schedule shall integrate his businesses with the Board's computerized system for real-time reporting of provision of services. Table-1 cover 60 different types of services including services provided or rendered by hotels, motels, guest houses, farmhouses, marriage halls, lawns, clubs and caterers, courier services and cargo services by road provided by courier companies; construction services and other services specified in the Islamabad Capital Territory (Tax on Services) Ordinance, 2001. Table-2 also covers different categories of services. Notwithstanding the provisions of this section, the Board may, whenever deem necessary, subject to such conditions, restrictions and limitations, specify a Negative List of Services exempt from tax under this Ordinance in Table-3 to the Schedule, by notification in the official Gazette, Islamabad Capital Territory (Tax on Services) Ordinance, 2001 added. Copyright Business Recorder, 2025
Business Recorder
13-06-2025
- Business
- Business Recorder
DRAP STRN deregistration case: FTO orders swift conclusion
ISLAMABAD: Federal Tax Ombudsman (FTO) has instructed the Large Taxpayers Office (LTO), Islamabad to promptly conclude proceedings in the matter of de-registration of Sales Tax Registration Number (STRN) application of Drug Regulatory Authority of Pakistan (DRAP). The complaint was filed under Section 10(1) of the FTO Ordinance, 2000, citing prolonged inaction by the tax authorities despite clear directions from the Appellate Tribunal Inland Revenue (ATIR) to reconsider the case afresh. The Complainant pointed out that no decision had been made on their statutory application for de-registration, while notices continued to be issued for tax compliance, resulting in procedural confusion and administrative hardship. FTO observed that the delay in implementing the Tribunal's order and inaction on the de-registration request fell within the definition of maladministration as per Section 2(3) of the FTO Ordinance. The matter is further complicated by a legislative amendment that potentially exempts regulatory and licensing bodies like DRAP from certain taxes under the Islamabad Capital Territory (Tax on Services) Ordinance, 2001. The LTO in its response claimed that remand proceedings were underway, and a hearing notice had already been issued. However, no final order had been passed. The complainant's authorized representative confirmed receipt of the notice but emphasized that the application for de-registration had still not been adjudicated. Taking serious note of the administrative delays, the FTO has directed the Chief Commissioner, LTO Islamabad to expedite the conclusion of de novo proceedings in line with the Tribunal's remand order and decide the complainant's pending application for de-registration in accordance with applicable laws. The LTO has been asked to submit a compliance report within 45 days. This direction by the FTO reflects a continued push for institutional responsibility and fair treatment of taxpayers by ensuring due process is not sacrificed at the altar of bureaucratic inertia. Copyright Business Recorder, 2025
