The Federal Board of Revenue (FBR) has finally issued the much-awaited Computerized Payment Receipt (CPR-FE) for the payment of Federal Excise Duty (FED) on the allotment or transfer of commercial property and the first allotment or first transfer of open plots or residential property.
In this regard, the FBR has issued S.R.O.1376(I)/2024 to amend the Federal Excise Rules, 2005, here on Thursday.
According to the procedure for the collection of duty, every developer or builder, at the time of allotment or transfer of commercial property and the first allotment or first transfer of open plots or residential property, shall collect duty at the rate of:
(a) 3% of the gross amount of consideration involved where the buyer is appearing on the active taxpayer list maintained under section 181A of the Ordinance on the date of acquisition of the property;
(b) 5% of the gross amount of consideration involved where the buyer has not filed the income tax return by the due date as specified in the proviso to rule IA of the Tenth Schedule to the Ordinance; or
(c) 7% of the gross amount of consideration involved where the buyer does not appear on the active taxpayer list maintained under section 181A of the Ordinance on the date of acquisition of the property.
The duty collected by the developer or builder shall be credited to the Federal Government on the same day through a computerized payment receipt (CPR) or SWAPS payment receipt (SPR) as set out in Form ‘A’ attached.
The developer or builder shall furnish to the Commissioner a monthly statement as per Form ‘B’ attached to these rules.
Where, for any reason, the duty is not paid or short-paid by way of credit to the Federal Government by the developer or builder, the Officer of Inland Revenue having jurisdiction over the developer or builder for the purposes of the Act shall proceed to collect the amount of duty so unpaid or short-paid under section 14 of the Act and the amount of default surcharge under section 8 of the Act on the duty unpaid or short-paid for the period commencing on the date on which the duty was due and ending on the date on which it was paid, the FBR said.
Where, at the time of recovery of duty, it is established that the duty that was to be collected from a person has meanwhile been paid by that person, no recovery shall be made from the developer or builder who had failed to collect the duty, but the developer or builder shall be liable to pay the default surcharge at the rate as provided under section 8 of the Act from the date the person failed to collect the duty to the date the duty was paid, the FBR added.
