KARACHI: Federal Board of Revenue (FBR) has not made the simplified return form and the registration feature available for Small Medium Enterprises (SMEs) so far. The issue was highlighted by the Karachi Tax Bar Association (KTBA) in its letter sent to the FBR chairman.

During the current year, the KTBA has witnessed that not only a host of anomalies and exceptions in both direct and indirect tax laws have been addressed through Finance Act 2021, but a whole new and simplified tax regime is introduced for SMEs engaged in manufacturing by way of introducing section 100E read with subsection (59A) of section 2 and the Fourteenth Schedule to the Income Tax Ordinance, 2001.

However, it is not helpful that simplified return for this purpose as required under section 100E and is yet to be notified by the FBR, especially when process of filing of return of income for other income/business streams had timely been notified and kicked off.

The KTBA also noted that as per clause 2 of Fourteenth Schedule to the Income Tax Ordinance, 2001, SMEs are required to register with FBR on its web-portal. However, the registration feature for SMEs is yet not available on the web-portal of FBR and urged the tax authority to intervene into the matter.

The KTBA said both drafts of simplified return of income SMEs and registration feature should be enabled at the earliest convenience in order to facilitate the taxpayers for timely fulfilling of their legal responsibilities and hoped that FBR would recognize the issue in its true spirit and a draft of simplified return for SMEs would be notified in line with section 237 ibid.

Copyright Business Recorder, 2021