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flood surcharge on export proceeds
11-19-2011, 11:48 PM,
#1
flood surcharge on export proceeds
My question is about the filing of online return on fbr portal, the form given by fbr calculate the flood surcharge with help of computional formula ( 15% surcharge on proportionate net tax chargeable for 3-1/2 months [(col 40 divided by 12 multiplied by 3.5)*0.15]
As you know exporters pay final tax ( deducted by banks as the payment received from abroad ) so the banks have deducted flod surcharge on payment that was received during these 3-1/2 months.
Now if this flood surcharge amount deducted during these month doesn't exceed the amount calculated by above formula ( it is less than that using above formula [(col 40 divided by 12 multiplied by 3.5)*0.15]
What should I do? do I have to pay extra tax to tally the amount calculated by the abvoe formula? as this online form won't let me change the value ( for protected cells )?
Any other ways? should I use the return file( without computional help ) and upolad that?
Thanks for your help.
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11-22-2011, 08:59 PM,
#2
 
You have suggested a good way of bypassing surcharge on proportionate tax i.e. preparing without formula return and uploading it.

However, it could be a solution, if there was inadvertent error in the return. But in this case FBR has intentionally interpreted s.4A as surcharge is leviable on proportionate annual tax payable. Circular 11 of 2011 & SRO 977 (I) 2011, contains such faulty interpretation of FBR in accordance with which faulty return form has been prepared.

So either you may file return as it is or you may challenge the return before HIgh Court. It is also possible that you upload without formula return according to s.4A and then when FBR raises objection you may challenge it. By the way I have never uploaded excel sheet on FBR eportal. Heard that it is usually problematic.
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11-22-2011, 11:04 PM,
#3
 
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by student_of_law</i>
<br />You have suggested a good way of bypassing surcharge on proportionate tax i.e. preparing without formula return and uploading it.

However, it could be a solution, if there was inadvertent error in the return. But in this case FBR has intentionally interpreted s.4A as surcharge is leviable on proportionate annual tax payable. Circular 11 of 2011 & SRO 977 (I) 2011, contains such faulty interpretation of FBR in accordance with which faulty return form has been prepared.

So either you may file return as it is or you may challenge the return before HIgh Court. It is also possible that you upload without formula return according to s.4A and then when FBR raises objection you may challenge it. By the way I have never uploaded excel sheet on FBR eportal. Heard that it is usually problematic.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

I just balanced this with an amount of phone bill refund.
In another case I have paid 10000 access flood surcharge according to this formula so FBR should give me a refund but I dont' think they will )
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11-22-2011, 11:11 PM,
#4
 
If there was no such actual deduction on phone bill, then I will suggest you should not have done so. It will make you liable to penalty for misstatement rather fraud and put you in difficulty. Your suggested way of uploading return without formula was better way than making any misstatement, rather fraud. Rest is up to you.

Question of refund will arise when FBR would admit that its SRO 977 and Circular 11 are ultra vires of s.4A. And it will not admit so unless High Court makes such decision or any other influential for its own sake makes FBR revert its policy. At present FBR claims this formula to be correct.
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