1. 1 4 th Floor, Central Hotel Building Civil Lines, Merewether Road Karachi Phone: 021 – 35644872 Fax: 021 – 35694578 E-mail: mim@mimandco.com Contact Address: Presented by: Mohammad Rehan Siddiqui

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3. 3 ADVANCE TAX AND DEDUCTION OF TAX AT SOURCE Historical background & Concept of Advance Tax The concept of Advance Tax was introduced in the sub-continent as a war measure to combat inflation and to with draw a part of the unprecedented amount in circulation. However in the case Prushottamdas vs. CIT 48 ITR (SC) 206, 211; the honorable superior court has observed that like many other innovations in taxation legislation, this innovation also has outlived its exigency which gave it birth. It was further observed that Government rest on the principle of pay as you earn i.e. paying tax by installments in respect of the income of the very year in which the tax is paid.

4. 4 ADVANCE TAX AND DEDUCTION OF TAX AT SOURCE Historical background & Concept of Advance Tax The Income Tax Ordinance, 2001 provides for following three modes of collecting taxes in advance, which we will discuss in detail :- Advance Tax directly liable to be paid; Deduction at source ; or Collection at source.

5. 5 ADVANCE TAX UNDER SECTION 147 (ADVANCE TAX DIRECTLY LIABLE TO BE PAID) Who is liable to pay advance tax? Every taxpayer, whose income was charged to tax for the latest tax/assessment year shall be liable to pay advance tax for the year other than the following: a) Income chargeable to tax under the head Capital Gains; b) Income chargeable to tax under the heads: i) Dividend (under section 5) ii) Tax on Certain payments to Non Residents (under section 6); iii) Shipping and Air Transport (under section 7);

6. 6 ADVANCE TAX UNDER SECTION 147 (ADVANCE TAX DIRECTLY LIABLE TO BE PAID) c) Income chargeable to tax at source under the head Property Income; d) Income subject to deduction of tax at source under the head Salary; e) Income under the following heads of income on which tax has been collected as final tax liability and no tax credit is allowed as result of sub-section (3) of section 168. i) Imports [section 148 (7)]. ii) Payments for goods and services [section 153 (6) or (7)]. iii) Export [section 154 (4)]. iv) Prizes and Winnings [section 156 (3)]. v) Transport business [section 234 (5)].

7. 7 ADVANCE TAX UNDER SECTION 147 (ADVANCE TAX DIRECTLY LIABLE TO BE PAID) f) The provision of this section does not apply to an individual where the individual latest assessed taxable income is less than Rs.500,000/-. g) Where the taxpayer is an association of person or company the advance shall be paid on the following formula. (AxB/C)-D Ais the taxpayer’s turnover for the quarter Bis the tax assessed to the taxpayer for the latest quarter Cis the taxpayer’s turnover for the latest tax year and Dis the tax paid in the quarter for which tax credit is allowed under section 168

8. 8 ADVANCE TAX UNDER SECTION 147 (ADVANCE TAX DIRECTLY LIABLE TO BE PAID) When advance tax is payable? For a Quarter of Date of Payment September On or before 15th day of September December On or before 15th day of December March On or before 15th day of March June On or before 15th day of June

9. 9 ADVANCE TAX UNDER SECTION 147 (ADVANCE TAX DIRECTLY LIABLE TO BE PAID) When advance tax is payable? For a Quarter of Date of Payment (Association of persons) September On or before 25th day of September December On or before 25th day of December March On or before 25th day of March June On or before 15th day of June

10. 10 WITHHOLDING TAX REGIME

11. 11 ADVANCE TAX UNDER SECTION 147 (ADVANCE TAX DIRECTLY LIABLE TO BE PAID) When advance tax is payable? For a Quarter of Date of Payment (Association of persons) September On or before 25th day of September December On or before 25th day of December March On or before 25th day of March June On or before 15th day of June

12. 12 REGIME (WITHHOLDING AND PRESUMPTIVE TAX REGIME HISTORICAL BACKGROUND AND OBJECTIVE OF PTR Tax administrators in Pakistan face major problems of non- reporting and under-reporting of income. The Withholding Tax and Presumptive Tax Regimes are not new concepts. The Presumptive Tax as initially introduced in the Indian Income Tax Act, 1922 under section 18(3BB) through which tax was imposed on Trading in Liquor, Timber and other Forest Produce in India.

13. 13 REGIME (WITHHOLDING AND PRESUMPTIVE TAX REGIME The Tax administrators in Pakistan in order to reduce the element of tax evasion requires every prescribed person to deduct tax at the time of making payment as per the prescribed rates provided in First Schedule of the Income Tax Ordinance, 2001 on the basis of gross value goods delivered or services rendered.

14. 14 DEFINATION OF PRESCRIBED PERSON AS PER INCOME TAX ORDINANCE, 2001 The definition of prescribed person provided in section 153 of the Income Tax Ordinance, 2001 [153(7)] The Federal Government A company Association of person constituted by or under, law A non profit organization A foreign contractor or consultants A consortium or joint venture

15. 15 DEFINATION OF PRESCRIBED PERSON AS PER INCOME TAX ORDINANCE, 2001 An export house for the purpose of sub section (2) of section 153 An Association of person having turnover of fifty million rupees or above tax year 2007 or in subsequent year An individual having turnover of fifty million rupees or above in tax year 2009 or in any subsequent year A person registered under the Sales Tax Act, 1990

16. 16 PRESCRIBED PERSON REQUIRES TO DEDUCTE TAX Imports(Under section 148) Salary (Under section 149) Dividend (Under section 150) Profit on debt (Under section 151) Payments to non resident (Under section 152) Payments to Goods, Services and contracts (Under section 153) Exports (Under section 154) Income from property (Under section 155) Prize Winnings (Under section 156) Petroleum Products (Under section 156A)

17. 17 UNDER SECTION 148 OF THE INCOME TAX ORDINANCE, 2001 The Collector of Customs shall collect advance tax from every importer of goods on the value of goods at the rate specified in Part-II of the First Schedule. In this section Collector of Customs means the person appointed as collector of customs under section 3 of Customs Act 1990.

18. 18 VALUE OF GOODS FOR COLLECTION OF UNDER SECTION 148 OF THE INCOME TAX ORDINANCE, 2001 In this section value of goods means the value of goods as determined under the Customs Act 1990 as if the goods were subject to ad valorem duty increased by the custom duty federal excise duty and sales tax if any payable in respect of the import of the goods. AD Valorem:A tax Base on the assessed value. Ad valorem taxes can be property tax or even duty on imported item

19. 19 IMPORTED GOODS NOT COVERED UNDER FINAL TAX REGIME The Tax Collect under this section shall be a final tax of the taxpayer. The tax collection under this section shall not be treated as final tax in case of imports made by the manufacturer:

20. 20 IMPORTED GOODS NOT COVERED UNDER FINAL TAX REGIME Raw Material, plant, machinery, equipment and parts by an industrial undertaking for its own use Fertilizer by manufacturer of fertilizer Motor Vehicles in CBU condition by manufacturer of motor vehicles Large import houses who have paid up capital exceeding Rs. 250 (M) Have imports exceeding Rs. 500 (M) Own Total Assets exceeding Rs. 350 (M) at the close of the year Tax collected in the case of ship breakers shall be final tax liability

21. 21 IMPORTED GOODS NOT COVERED UNDER MINIMUM TAX REGIME Tax required to be collected from a person under this section on the import of edible oil and packing material for a tax year shall be minimum tax

22. 22 RATES OF ADVANCE TAX UNDER SECTION 148 OF THE INCOME TAX ORDINANCE, 2001 Industrial undertaking importing remeltable steel and directly reduced iron for its own use at the rate of [1%] Persons importing potassic fertilizers in pursuance of Economic Coordination Committee of the cabinet’s decision No. ECC- 155/12/2004 dated the 9th December, 2004 Persons importing urea; and Manufacturers covered under Notification No. S. R. O. 1125(I)/2011 dated 31st December, 2011.

23. 23 RATES OF ADVANCE TAX UNDER SECTION 148 OF THE INCOME TAX ORDINANCE, 2001 Goods Covered under S. R. O. 1125(I)/2011 dated 31st December, 2011provides zero rated sales tax regime on or as the case may be at the rate of five percent wherever applicable as per the PCT heading number. Goods covered under SRO 1125: Leather, Textile & articles, sports goods, surgical goods, chemicals of various categories. The benefit of this notification shall be available to manufacturer, importer, exporter and wholesaler

24. 24 RATES OF ADVANCE TAX UNDER SECTION 148 OF THE INCOME TAX ORDINANCE, 2001 Persons importing pulses at the rate of [2%] Commercial importers covered under Notification No. S. R. O. 1125(I)/2011 dated the 31st December, 2011 at the rate of [3%] Ship breakers on import of ships at the rate of [4.5%] Industrial undertakings not covered at the rate of [5.5%] Companies not covered at the rate of [5.5%] Persons not covered at the rate of [6%]

25. 25 SALARY UNDER SECTION 149 OF THE INCOME TAX ORDINANCE, 2001 Every persons responsible for paying salary to an employee shall at the time of payment, deduct tax from the amount paid at the employee’s average rate of tax computed at the rates specified in employee chargeable under the head Salary for the tax year. Every person responsible for directorship fee or fee for attending board meeting or such fee by whatever name called shall deduct tax on the gross amount payable at the rate of [20%].

26. 26 DIVIDENDS UNDER SECTION 150 OF THE INCOME TAX ORDINANCE, 2001 The rate of tax to be deducted under section 150 of the Income Tax Ordinance, 2001. Dividends declared or distributed by purchaser of power project privatized by WAPDA and set-up for power generation at the rate of [7.5%] Dividends other than above; Filer at the rate of [10%]or Non-filers at the rate of [15%]

27. 27 PROFIT ON DEBT UNDER SECTION 151 OF THE INCOME TAX ORDINANCE, 2001 Profit on debt has to deduct tax from the gross amount of profit Filer at the rate of [10%] *Non-filers at the rate of [15%] Yield or profit paid is rupees five hundred thousand or less, the rate shall to be [10%]

28. 28 PAYMENTS TO NON-RESIDENTS UNDER SECTION 152(1A)(1AA)(1AAA) OF THE INCOME TAX ORDINANCE, 2001 Every prescribed shall deduct tax while making payments to non- resident Royalty or fee for technical services at the rate of [15%] Execution of contract or sub-contract assembly or installation including supply of supervisory activity in relation to such project at the rate of [6%] Contract for advertisement services rendered by satellite channel at the rate of [6%]

29. 29 PAYMENTS TO NON-RESIDENTS UNDER SECTION 152(1A)(1AA)(1AAA) OF THE INCOME TAX ORDINANCE, 2001 Payment of insurance and re-insurance premium at the rate of [5%] Payment of advertisement services to a non resident, media person relaying from outside Pakistan at the rate of [10%] Payments not covered under section (1A)(1AA)(1AAA) shall deduct tax at the rate of [20%]

30. 30 PAYMENTS TO NON-RESIDENTS UNDER SECTION 152(2A) OF THE INCOME TAX ORDINANCE, 2001 Every prescribed person making a payment in full or part including a payment by way of advance to a permanent establishment in Pakistan of a non resident person; On sale of goods at the rate of 3.5% of the gross amount of payable Rendering or providing of transport services at the rate of [2%] In any other case six percent [6%] of gross amount payable

31. 31 PAYMENTS FOR GOODS UNDER SECTION 153 OF THE INCOME TAX ORDINANCE, 2001 Every prescribed person making a payment in full or in part including by way of advance to a resident persons; For sale of rice, cotton, seeds, edible oil at the rate of [1.5%] For sale of any other goods -In case of companies at the rate of [4%] -In case of other taxpayers [4.5%]

32. 32 PAYMENTS FOR GOODS UNDER SECTION 153 OF THE INCOME TAX ORDINANCE, 2001 The rate of tax to be deducted from payment of rendering of or providing of services -In case of companies at the rate of [8%] -In case of other taxpayers at the rate of [10%] The rate of tax to be deducted on execution of contract including contract sign by a sport person, but not including a contract for the sale of goods or rendering or providing of services -In case of companies at the rate of [7%] -In case of other taxpayers at the rate of [7.50%] -In case of sport person at the rate of [10%]

33. 33 EXPORTS UNDER SECTION 154 OF THE INCOME TAX ORDINANCE, 2001 Tax to be deducted on the value of export proceed at the time of export under sub section (1), (3), (3A), (3B) or (3C) of the Income Tax Ordinance, 2001 at the rate of [1%] Every authorized dealer in foreign exchange shall, at the time of realization foreign exchange proceeds on account of the commission due to indenting commission agent, deduct tax from the proceeds at the rate of [5%] On realization of proceeds on account of sale of goods to an exporter under inland back to back letter of credit or any other arrangement as may be prescribed by Federal Board of Revenue, deduct tax from the amount of the proceeds at the rate of [1%]

34. 34 INCOME FROM PROPERTY UNDER SECTION 155 OF THE INCOME TAX ORDINANCE, 2001 Every prescribed person making a payment in fill or part (including a payment by way of advance) to any person on account of rent of immovable property (including rent of Furniture an d Fixtures, and amount of services relating to such property) shall deduct as per the following Rates: Income Less than Rs. 150,000/-Rs.NIL Above 150,000/- but does not exceed 1,000,000/- 10% of amount exceed Rs. 150,000 Amount Exceed Rs. 1,000,000/- Rs.85,000 + 15% amounting exceeding Rs. 1,000,000/-

35. 35 INCOME FROM PROPERTY UNDER SECTION 155 OF THE INCOME TAX ORDINANCE, 2001 In case of companies the rate of deduction is 15% of the gross amount of rent paid. In case of company rental income is taxable at normal slab rate applicable to companies i. e., 34%. The net taxable is computed after adjustment of deductions provided in section 15 of the Income Tax Ordinance, 2001

36. 36 INCOME FROM PROPERTY UNDER SECTION 155 OF THE INCOME TAX ORDINANCE, 2001 (ALLOWABLE DEDUCTIONS) 1/5 th Repairs of Gross Amount of Rent Collection charges at the rate of 6% Any Local rate, tax, charge of cess Premium paid (Insurance) paid or payable against damage of property Interest paid against the mortgage of property or other capital charge

37. 37 PRIZES & WINNING S UNDER SECTION 156 OF THE INCOME TAX ORDINANCE, 2001 A prescribed person making payment by way of prizes and wining of lottery, quiz or prize offered by a company shall deduct tax on the following rate: In case of prize on prize bonds or cross word puzzle at the rate of [15%] of gross amount paid In case of raffle, lottery, prize on wining a quiz or prize offer by a company for promotion of sale at the rate of [20%] of the gross amount paid.

38. 38 PRIZES & WINNING S UNDER SECTION 156 A OF THE INCOME TAX ORDINANCE, 2001 A prescribed person Selling petroleum products to a petrol pump operator shall deduct tax from the amount of commission or discount allowed to the operator at the rate of [12%] of the amount gross amount paid

39. 39 OFFENCES & PENALTIES AS PER THE PROVISIONS OF THE INCOME TAX ORDINANCE, 2001

40. 40 PENALTY UNDER SECTION 182 OF THE INCOME TAX ORDINANCE, 2001 Any person who commits any offence, fails to file any statutory statement required under the section 114 to 165 of the Income Tax Ordinance, 2001 or fails to deducted tax as per the rates prescribed in First Schedule of the Income Tax Ordinance, 2001 is liable to penalty under section 182 of the Income Tax Ordinance, 2001.

41. 41 PENALTY UNDER SECTION 182 OF THE INCOME TAX ORDINANCE, 2001 A person fails to file return of income under section 114 within due date such person is liable to pay 0.1% of the total tax payable subject to maximum penalty of 50% of the tax payable provided that if the penalty worked out as aforesaid is less than twenty thousand rupees or no tax is payable for that tax year than such person shall pay 20,000/- rupees. A person fails to file statements under section 115,165 or 165A within due date such person shall pay 2,500/- per day. However per day penalty shall not exceed Rs. 10,000/-

42. 42 DEFAULT SURCHAGE UNDER SECTION 205 OF THE INCOME TAX ORDINANCE, 2001 A person fails who fails to make payment under section 147 of the Income Tax Ordinance, 2001 up to 90% of the total tax payable. Such person shall pay default surcharge at the rate of 18% per annum A person fails to Collect Tax under Division II of Part V or Chapter or fails to pay to tax collected or deducted as required under section 160 of the Income Tax Ordinance, 2001. Such person is liable or shall pay default surcharge at the rate of 18% per annum

43. 43 SALES TAX WITHOLDING TAX RULES 2007

44. 44 APPLICATION AND COMMENCEMENT It is applicable to taxable services and taxable goods as are supplied by a person Taxable goods means all goods other than those which have exempted under section 13 of the Sales Tax Act 1990 Taxable activity means any economic activity carried on by a person whether or not for profit and includes -Any activity carried on in the form of a business, trade or manufacture but does not include employee providing services in that capacity of an employer -An activity carried on by an individual as a private recreational pursuit or hobby

45. 45 Specification of Withholding Agent Federal and provisional government departments Autonomous bodies Public Sector organization Taxpayer fall in the Jurisdiction of Large Taxpayers Unit for the purpose of Sales Tax, Federal Excise duty or income Tax Recipient of services of advertisement, who are registered for sales tax

46. 46 Who is Withholding Agent ? As per the explanation of Withholding agent given in Sales Tax Special Procedure (Withholding) Rules 2007 that it includes the accounting office which is responsible for making payment against the purchases made by a government department.

47. 47 Who is Withholding Agent ? Registered under Sales Tax Regime (Individual person) Registered under Sales Tax Regime (Association of persons) Registered under Sales Tax Regime (Companies) As per the explanation of Withholding agent given in Sales Tax Special Procedure (Withholding) Rules 2007 now the accounting offices of the Government Department who are making payment against purchases acts as Withholding Agents

48. 48 Responsibility of Withholding Agent Indication through Advertisement or notice with regards to sales tax deduction under the Rules against the purchases of taxable goods from the payment to be made to supplier A withholding agent having Free Tax Number (FTN) is liable to deduct tax worked out on the basis of gross value of taxable supply (Government organizations) Recipient of advertisement services based in Pakistan shall deduct tax as mentioned in the invoice issued by the service provider

49. 49 Responsibility of Withholding Agent A withholding agent shall deduct tax from the payment of services rendered by a person based outside Pakistan on account of advertisement services as mentioned in the invoice issued by the service provider In case the sales tax amount not shown in invoice the withholding agent is liable to deduct sales tax as per the applicable rates of the value of taxable services from the payment due to service provider

50. 50 Responsibility of Withholding Agent A withholding agent other than a PERSON in the jurisdiction of Large Taxpayers Unit and the recipient of advertisement services shall deduct an amount equal to one fifth of the total sales tax shown in the sales tax invoice issued by a registered person

51. 51 Responsibility of Withholding Agent In case of purchases made by government following procedures required to be adopted by the Drawing and Disbursing Officer (DDO). -In case of Federal Government the Accountant General of Pakistan will account for the amount of sales tax deducted during the month under the Head of Account B02341-Sales Tax -In case of purchases made by District Government the Accountant General of Pakistan will account for the amount of sales tax deducted during the month under the Head of Account G12777-Sales Tax

52. 52 Responsibility of Withholding Agent -In case of purchases made by the department falling in purview of Military Accountant (MAG). The MAG shall account for the amount deducted at source during the month under the Head of Account B02341-Sales Tax

53. 53 Responsibility of the Collector The Collector shall keep the list of all withholding agents falling in his jurisdiction and monitor payment of tax deducted by withholding and shall ensure that the return is filed The Collector shall ensure that the return received from the bank id duly filed in the computerized system under section 2(5AA) of the Sales Tax Act, 1990 The Collector shall periodically ensure the suppliers mentioned in the return filed by the withholding agent are filing their returns and duly or rightly declaring the supplies made to withholding agent

54. 54 Illustration of Invoice and Tax Deduction of Sales Tax Value of Taxable supplies excluding Sales TaxRs. 1,000 Sales Tax @ 16%Rs. 160 Total Value of invoice including sales taxRs. 1160 ======= Sales Tax to be deducted by withholding agent [32 (i.e. 160/5)=32] Sales Tax Payable by the withholding agent to supplier (160-32=128 ) Balance Amount Payable to supplier by withholding agent 1128[1000+128 ]

55. 55 Sindh Sales Tax (Withholding) Rules 2014

56. 56 Who is Withholding Agent ? -Offices of the Federal, Provisional, Local and District Governments -Autonomous Bodies -Public Sector organizations including public corporation, state owned enterprises and regulatory bodies and authorities -Organizations funded fully or partially out of the budget of provisional and federal government -Companies as defined in Section 2(28) -FBR registered or SRB registered persons receiving services of advertisement - SRB registered persons receiving services from unregistered persons

57. 57 Illustration of Invoice and Tax Deduction of Sales Tax Value of Taxable services excluding Sales TaxRs. 1,000 Sales Tax @ 15%Rs. 150 Total Value of invoice including sales taxRs. 1,150 ======= Sales Tax to be deducted by withholding agent [30 (i.e. 150/5)=30] Sales Tax Payable by the withholding agent to supplier (150-30=120 ) Balance Amount Payable to supplier by withholding agent 1120[1000+120 ]

58. 58 Offences and Penalties (Section 43) Any person who is required to be registered under the Act such person shall pay Rs. 10,000/- or Five Percent (5%) of the amount of sales tax that would have been liable to pay had he been registered which ever is higher Where any person fails to file the return of income such person shall liable to pay penalty of Rs. 5,000/- provided that if return is not filed within fifteen (15) days of due date or Rs. 100/- for each day of default Fails to deposit the amount of tax such person shall pay Rs.10,000/- or Five Percent (5%) of the total tax payable for that tax period (if default is more than 3 days which ever is higher

59. 59 Offences and Penalties (Section 43) Any person who fails to maintain records required under the Act, such person shall pay Rs. 5,000/- or Five Percent (5%) of the total tax payable. Any person who knowingly or fraudulently submit false documents to any officer of the SRB such person shall pay Rs. 25,000/- or one hundred percent (100%) of tax payable for the tax period(s) to which offence relates. Any who commits or attempted to commit any fraud or connives in the commission of tax fraud of Rs. 25,000/- such person shall pay one hundred (100%) of the tax payable for the respective tax period(s). Such person also be liable upon conviction by a Special Judge to imprisonment for a term of five years (5)

60. 60 Offences and Penalties (Section 43) Any person obstructs any officer of the SRB in the performance of his official duties under the Act such person is liable to pay penalty of Rs. 25,000/- or one hundred percent (100%) of the tax payable for the respective tax period(s) which ever is higher Any person repeats an offence for which a penalty is provided under the provisions of the Act such person is liable to pay twice the amount of penalty provided under the provisions of the Act

61. 61 E-FILING REQUIREMENT INCOME TAX

62. 62 Monthly statement under section 149 (Salary) A withholding agent making payment on account of salary shall deducted tax under section 149 as per the rates provided in First Schedule of the Income Tax Ordinance 2001. -The tax deduction under section 149 shall be reported in a monthly statement required to be filed on or before the 15 th day of the next month The statement shall consist of the following information: Name, NTN or CNIC, Address of the person, Total amount of payments made to person, the amount of tax collected & deposited from the person and computerized payment receipt number (CPR)

63. 63 Monthly statement under section 165 (Other than salary) A withholding agent making payment on account of supply of goods, services, payment to non resident, rent, profit on debt, commission, dividend and others shall deducted tax under section 153 of the Income Tax Ordinance 2001 as per the rates provided in First Schedule. -The tax deduction under section 153 to 233 shall be reported in a monthly statement required to be filed on or before the 15 th day of the next month The statement shall consist of the following information: Name, NTN or CNIC, Address of the person, total amount of payments made to person, the amount of tax collected & deposited from the person and computerized payment receipt number (CPR)

64. 64 Penalty for Non filing of Monthly statement under section 165 A person fails to file monthly after due date i.e. 15 th day of following the next month is liable for penalty under section 182 of the Income Tax Ordinance. Rate of Penalty Rs. 2,500/- for each day of default subject to minimum penalty of Rs. 50,000/- As per Clause 16 Part-III of the Second Schedule, Now the penalty under section 182 for non filing of statement under section 165 and 165A or within due date has been reduced to Ten Thousand Rupees. (Rs. 10,000)

65. 65 E-FILING REQUIREMENT SALES TAX (FEDERAL)

66. 66 Monthly Sales Tax Returns A registered persons required to file a return under section 26 of the Sales Tax Act 1990. The Sales Tax Returns required to be e-filed on or before the 15 th day of the next month with all Annexures provided in STR-7 Every Registered person, being a private or public limited company shall file annual sales tax returns in the form as set out in STR10 for a financial year by the 30 th September of the following year.

67. 67 Penalty for Non filing of Return A person fails to file monthly sales tax return, such person shall pay a penalty of under section 33 of the Sales Tax Act 1990 of Rs.5,000/- or 100 rupees for each day of default A person fails to pay due tax or any part thereof whether willfully or otherwise in time or in the manner specified under this Act, Rules or notifications such person is liable to pay default at the rate of KIBOR+ 3% of amount of tax due.

68. 68 E-FILING REQUIREMENT SALES TAX (SINDH REVENUE BOARD)

69. 69 Monthly Sales Tax Returns A registered persons required to file a return under section 12 of the Sindh Sales Tax Act 2011. The Sales Tax Returns required to be e-filed on or before the 15 th day of the next month with all Annexures provided in SST-03 along with all its annexure provided therein A registered person shall pay the amount of tax due on or before 15 th day of the following month to which it relates

70. 70 Penalty for Non filing of Return A person fails to file monthly sales tax return, such person shall pay a penalty of under section 24 of the Sindh Sales Tax Act 2011 of Rs.10,000/- or 300 rupees for each day of default A person fails to pay due tax or any part thereof whether willfully or otherwise in time or in the manner specified under this Act, Rules or notifications such person is liable to pay Inter Bank Rate + 3% per annum of the amount of tax due. For the purpose of calculation of default, the period of default shall be reckoned on the sixteenth day of a month (Following the due date of tax period to which the default relates