Saturday, 25 May 2024
Trending
National-tax-council
UPDATES

National Tax Council (NTC) lacks the constitutional Cover

The National Tax Council (NTC) does not have the same constitutional coverage as the General Sales Tax (GST) Council in India. Therefore, the status of the NTC is no more than a forum for discussion.

According to provincial tax administration, the first target set for the National Tax Council (NTC) was an agreement on a common definition of “goods” and “services”. He added that if the formation of the council has been challenged in a court of law, no one has a definite idea of ​​the final fate of the whole affair.

According to Business Recorder report, the NTC is modeled on the GST Council in India. In India, the GST Council constituted on September 12, 2016 under Article 279-A of the Constitution. Oddly enough, there is no such legal coverage available to the National Tax Council (NTC) in Pakistan.

See also  FBR launched operation: Get Sales tax registration otherwise face three years imprisonment

Difference between the FBR and the provincial tax administration

According to informed sources, the situation is moving towards a far-reaching solution. The biggest dysfunctional businesses and consultants are taking advantage of this uncertainty. As they are all thriving at the expense of national instability. Meanwhile, he said that there is silence among tax intellectuals on the issue. Despite the fact that it was a major national debate on tax coherence. Sources said that there is a sharp difference between the Federal Board of Revenue (FBR) and the provincial tax administration as the FBR has set its own definition of restaurant services and has reduced the tax rate to 7.5 per cent so that the offer Restaurant owners, on the other hand, in the provinces, especially in Punjab, have come up with a counter-measure of 5% tax rate if payment is made by debit or credit card.

Similarly, Khyber Pakhtunkhwa witnessed a series of lawsuits. As the FBR continued with unprecedented tweaks to judicial interpretations and legislative interventions. Interestingly, one of the pre-18th Amendment decisions of the Peshawar High Court clearly supported the FBR. Similarly, the service sector of construction, tool manufacturing, transportation of oil and fashion designers, etc. has also gone beyond its jurisdiction.

See also  Sindh Revenue Board Contributed to the Flood Relief Fund

The FBR spokesman said that since these sectors are mainly in commodities. The provinces are not in a position to legislate in these areas in the light of entry 49 of the Fourth Schedule to the 1973 Constitution. It’s like rewriting the constitution and the 18th amendment.

ALSO READ | Sales Tax Relief by Punjab Revenue Authority

READ ALSO | FBR extends scope of sales tax on IT Services and IT Enabled Services

ALSO READ | Exemption from sales tax on medical and testing equipment regarding covid-19

online-tax-course-in-pakistan
Ads:

Is there GST in Pakistan?

The term “taxable supplies” refers to supplies of goods and services and to imports that are liable to sales taxThe following are the sales tax rates: Standard rate for goods: 17% and Standard rates for services: 16%, 15% and 14%.

Liability to Pay the Tax

The liability to pay the sales tax in case of goods being supplied lies upon the consumer whereas the liability to pay the sales tax of imports lies upon the importer according to section 3 of the Sales Act 1990.

Sales Tax | Provincial Sales Tax | FBR | Federal Board of Revenue | 18th Amendment |

See also  Government Presents Finance Supplementary Bill 2023 in Parliament
Tax.net.pk - Your Tax Experts and Consultants

Welcome to Tax.net.pk

Providing Expert Tax Services for Individuals and Businesses

About Us

At Tax.net.pk, we are dedicated to providing comprehensive tax solutions tailored to meet the needs of individuals and businesses. With years of experience in the industry, our team of tax experts is equipped to handle various tax matters, including tax planning, preparation of tax returns, and compliance.

We strive to stay up-to-date with the latest tax laws and regulations, ensuring that our clients receive accurate and reliable advice. Our commitment to client satisfaction and our in-depth knowledge of the tax landscape make us the trusted choice for all your tax-related needs.

Contact Us

For inquiries or to schedule a consultation, please reach out to us: