Islamabad, Sep 5: The much awaited Computerized Payment Receipt (CPR-FE) for the payment of Federal Excise Duty (FED) on the allotment or transfer of commercial property, as well as the initial allocation or transfer of open plots or residential property, has finally been released by the Federal Board of Revenue (FBR).
The Federal Excise Rules, 2005 were amended on Thursday by a S.R.O.1376(I)/2024 issued by the FBR in this regard.When it comes to the process of collecting duty, each developer or builder must pay duty at the rate specified when commercial property is allocated or transferred, as well as when open plots or residential property are first allocated or transferred.
(a) Three percent of the gross consideration amount in cases where the buyer is listed as an active taxpayer on the list kept up to date by section 181A of the Ordinance on the date the property was acquired.
(b) Five percent of the gross consideration amount in cases where the buyer fails to file the income tax return by the deadline indicated in Tenth Schedule to the Ordinance’s proviso to rule IA;
(c) 7% of the total consideration, if the buyer does not appear on the list of active taxpayers kept up to date by section 181A of the Ordinance, on the date the property was acquired.
On the same day, the developer or builder must credit the Federal Government with the duty they have collected using a computerized payment receipt (CPR) or SWAPS payment receipt (SPR), as outlined in the attached Form ‘A’.
A monthly statement in accordance with Form “B,” which is attached to these rules, must be provided by the developer or builder to the Commissioner. If the developer or builder fails to pay the duty or only pays a portion of it to the Federal Government, for any reason, the Officer inland revenue with jurisdiction over the developer or builder for the purposes of the Act,
will proceed to collect the amount of default surcharge under section 8 of the Act on the duty unpaid or short paid for the period beginning on the date the duty was due and ending on the date it was paid, according to FBR, as well as the amount of duty so unpaid or short paid under section 14 of the Act.
No recovery shall be made from the developer or builder who had neglected to collect the duty if it is determined at the time of recovery of duty that the person from whom the duty was to be collected has already paid the duty.
Developers and builders who neglect to collect the duty would be responsible for paying the default surcharge as stipulated in Section 8 of the Act, starting from the date of failure to collect the duty and continuing until the payment is paid, according to FBR.
