ISLAMABAD: The Federal Board of Revenue (FBR) has devised an improved system regarding the issuance of exemption certificates under Section 148 of the Income Tax Ordinance-2001, particularly for the import of raw material and intermediaries used by industries.
“This intended system is to be based on an automated risk-based mechanism to reduce the processing time in the issuance of exemption certificates,” said a statement issued by FBR on Thursday. “The automated procedure has been planned for public/private limited companies and all other persons.”
According to the FBR, the automated system would require submission of check-listed information from the user.
FBR has further devised a procedure which has to be adopted for issuance of exemption under Section-148 for import of raw material.
Under the new procedure, the commissioner will issue exemption certificate in case of a public limited company within seven days, in case of a private limited company within 10 days and in case of all other persons within 15 days of filing of application through the automated system.
If the commissioner fails to take action on the application within the above mentioned time limits, the system will issue exemption certificates to the taxpayer.
However, such exemption certificate issued to all persons, except public limited and private limited companies, shall be provisional.
The system will not issue exemption certificate if an assignment has been issued by the commissioner within seven days of filing of the application, CPR of discharge of tax liability is not available in the system, annexure to SRO 717(I)/2014 has not been filled in the system and the taxpayer has applied for substitution of raw material to be imported.
FBR said before the launch of this system and to improve the quality of the decisionmaking process, the board has requested for valuable input from all stakeholders and the general public.