Category: FAQs

How to file application for Sales Tax Refund

This article provides information regarding Sales Tax Refunds auto process through FASTER system implementation by FBR to process refund claims. The process is fully automated and does not need any manual or human intervene. Payments through FASTER claims will be process within 72 hrs. and Taxpayers will be notified during the process in case of any discrepancy found with the help of SMS alerts.

How can I declare Investment with institutions other than Pakistani Banks or National Savings Centers?

Process of declaring Investment other than Pakistani Banks or National Savings Centers on Iris is as under: Open Dialog. Select relevant option against “Type”. Select “Unspecified” against “Form”. Search “Other” in the search against “Institution” and select it. Enter Number against “IBFT” and “IBAN” fields. Click “OK“.    

How can I declare Profit on Debt from institutions other than Pakistani Banks or National Savings Centers?

Process to declare Profit on Debt from institutions other than Pakistani Banks or National Savings Centers on Iris is as under: Open Dialog. Select relevant option against “Type”. Select “Unspecified” against “Form”. Search “Other” in the search against “Institution” and select it. Enter Number against “IBFT” and “IBAN” fields.    

Definition of Non- Banking Finance Company

*Non-banking finance company means an NBFC as defined in the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003. A non-banking finance company is defined as a company that is licensed by the Commission to engage in one or more forms of business in terms of rule 5 provided that its memorandum and articles of association permits it to do so, and includes asset management company, discount house, housing finance company, investment adviser, investment finance company, […]

Definition of Profit on Debt

Profit on a debt *[whether payable or receivable, means]  any profit, yield, interest, discount, premium or other amount **[,] owing under a debt, other than a return of capital; or any service fee or other charge in respect of a debt, including any fee or charge incurred in respect of a credit facility which has not been utilized Profit on debt shall be Pakistan-source income if it is a.  paid by a resident person, except […]

Definition of Leasing Company

*Leasing company means a leasing company as defined in the Non-Banking Finance Companies and Notified Entities Regulation, 2007. “Leasing Company” means a Non Banking finance Company licensed by the Commission to provide leasing.     *The above clause substituted by the Finance Act, 2008. The substituted clause read as follows: “leasing company “means a company licensed under the Leasing Companies (Establishment and Regulation) Rules, 2000”.

Definition of Fee for Technical Services

Fee for technical services means any consideration, whether periodical or lump sum, for the rendering of any managerial, technical or consultancy services including the services of technical or other personnel, but does not include : consideration for services rendered in relation to a construction, assembly or like project undertaken by the recipient; or consideration which would be income of the recipient chargeable under the head ―Salary

Definition of Investment Company

*Investment company  means an investment company as defined in the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003. An investment company is a corporation or trust engaged in the business of investing the pooled capital of investors in financial securities. This is most often done either through a closed-end fund or an open-end fund. Investment companies are business entities, both privately and publicly owned, that manage, sell and market funds to the public.     […]

Definition of Pre-commencement Expenditure

Pre-commencement Expenditure means any expenditure incurred before the commencement of a business wholly and exclusively to derive income chargeable to tax, including the cost of feasibility studies, construction of prototypes, and trial production activities, but shall not include any expenditure which is incurred in acquiring land, or which is depreciated or amortised.

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