AGL 40.10 Decreased By ▼ -0.90 (-2.2%)
AIRLINK 127.80 Decreased By ▼ -0.34 (-0.27%)
BOP 6.60 Decreased By ▼ -0.10 (-1.49%)
CNERGY 4.60 Increased By ▲ 0.08 (1.77%)
DCL 8.58 Decreased By ▼ -0.03 (-0.35%)
DFML 41.40 Increased By ▲ 0.31 (0.75%)
DGKC 86.50 Decreased By ▼ -0.63 (-0.72%)
FCCL 32.13 Decreased By ▼ -1.26 (-3.77%)
FFBL 65.40 Decreased By ▼ -0.01 (-0.02%)
FFL 10.27 Decreased By ▼ -0.20 (-1.91%)
HUBC 110.60 Decreased By ▼ -0.03 (-0.03%)
HUMNL 14.70 Decreased By ▼ -0.60 (-3.92%)
KEL 5.15 Increased By ▲ 0.17 (3.41%)
KOSM 7.15 Decreased By ▼ -0.28 (-3.77%)
MLCF 41.69 Decreased By ▼ -1.30 (-3.02%)
NBP 60.20 Decreased By ▼ -0.22 (-0.36%)
OGDC 194.48 Decreased By ▼ -3.16 (-1.6%)
PAEL 27.95 Decreased By ▼ -1.06 (-3.65%)
PIBTL 7.98 Decreased By ▼ -0.28 (-3.39%)
PPL 150.52 Decreased By ▼ -3.64 (-2.36%)
PRL 27.08 Increased By ▲ 2.08 (8.32%)
PTC 16.08 Decreased By ▼ -0.01 (-0.06%)
SEARL 78.20 Decreased By ▼ -0.25 (-0.32%)
TELE 7.42 Increased By ▲ 0.05 (0.68%)
TOMCL 35.70 Decreased By ▼ -0.39 (-1.08%)
TPLP 7.90 Decreased By ▼ -0.17 (-2.11%)
TREET 15.87 Decreased By ▼ -0.09 (-0.56%)
TRG 52.70 Decreased By ▼ -0.66 (-1.24%)
UNITY 26.65 Decreased By ▼ -0.06 (-0.22%)
WTL 1.28 Increased By ▲ 0.01 (0.79%)
BR100 9,920 Decreased By -52.1 (-0.52%)
BR30 30,751 Decreased By -346.3 (-1.11%)
KSE100 93,225 Decreased By -423.8 (-0.45%)
KSE30 28,885 Decreased By -132.9 (-0.46%)

The Central Board of Revenue (CBR) has issued procedure for the payphone/cellular phone, calling card companies and other telecommunication service providers to claim input tax adjustment on account of PTCL bills.
The CBR on Tuesday issued sales tax circular 3 of 2005 to clarify the issue for the collectors of sales tax and telecommunication service providers.
The CBR has communicated to these telecom service providers that the utility bills are adjustable during the month in which the bills are paid for the purpose of input tax adjustment.
According to the circular, a number of companies providing the telecommunication services have approached the Board for obtaining clarification regarding SRO 1004(I)/2005 of September 23, 2005.
These companies opined that since PTCL bills are received by them on 15th day of the following month and are payable by 24th day of the following month, it is not possible for them to make adjustment of input tax on account of PTCL bills by 21st day of the following month by which date they are required to pay the federal excise duty (FED) on their prepaid telecommunication services under SRO 1004(I)/2005.
The Board has clarified that for the purpose of input tax adjustment, utility bills are adjustable during the month in which the bills are paid.
Therefore, for calculating their net tax liability for a tax period, the persons rendering or providing telecommunication services are required to make input tax adjustment on account of PTCL charges on the basis of the bills paid during the same tax period.
In this way, such persons shall have ample time at their disposal to calculate their net tax liability and make payment of federal excise duty in respect of the prepaid telecommunication services provided during a month, by 21st day of the following month.

Copyright Business Recorder, 2005

Comments

Comments are closed.