The Federal Board of Revenue (FBR) has made it compulsory for builders and developers to get themselves enlisted with the FBR till December 31, 2020. The registration will help them to avail Prime Minister’s amnesty scheme for the construction sector and disallowed payment of fixed tax in instalments, after the expiry of the deadline of Sep 30, 2022.
FBR arranged an online session to resolve the issues and answer the queries of those builders, developers and people’s associated or interested in construction business under the PM motivating force Package for Construction Sector. The session was decided for one hour but extended for more half an hour on the request of the stakeholders, in which more than two hundred queries have been solved.
Tax authorities have educated the industry that up to 3000 square yards the per square yard charge rate will be charged and in the area of development would surpass, at that point the rate would be charged at Rs 125 for each square yard. There will be no top on the size of development as it could be built from 2 marlas to any boundless roofs.
The FBR has also given instructions to the non-resident builders and developers working in Pakistan need to file their income tax returns, registration with the FBR is mandatory foravailing the incentive package, renovation business not covered under the amnesty scheme and facility of temporary registration with the FBR is available till submission of missing documents.
In the session a question was asked whether past activities are secured under the plan, FBR authorities reacted that the plan would be accessible to ventures started before December 31, 2020, and existing continuous tasks enrolled with the plan. The new and ongoing projects would be required to be enrolled on the ‘IRIS’ portal of the FBR and the progressing activities should tell about their fruition proportion and need to pay taxes for the rest of the work under the new fixed tax scheme.
