The Federal Board of Revenue (FBR) has removed the condition of the Installed Capacity Determination Certificate (ICDC) of Khyber Pakhtunkhawa Department of Industries for the industrial units located in erstwhile Federally Administered Tribal Areas (FATA).

Through its Circular No. 4 of 2021, FBR on Wednesday empowered the Commissioner Inland Revenue concerned to determine the capacity of machinery installed by the industrial units located in the tribal areas. According to the circular, FBR has revoked the condition of the ICDC of the KP Department or the Ministry of Industries.

FBR said the KP Department reportedly showed its inability to issue ICDC, as required under Circular No. 3 of 2021, as stated by certain industrial units of erstwhile FATA/PATA in their representation to the Board.

“Hence, taking into account the ground reality and to facilitate the FATA/PATA domiciled industrial units, the condition of acquiring ICDC as required under circular number 3 of 201 is done away with immediate effect. Henceforth, the Commissioner Inland Revenue (CIR) is concerned with determining the capacity of the installed machinery. The remaining portion of the circular will remain operative.”

Moreover, in order to streamline the process of import of raw material and its consumption, FBR has also specified the following timelines:

• Circular 9 of 2021 — Revocation of Detention Order issued by the Collector Customs, Peshawar: On an application filed by the importer with the Office of the CIR concerned accompanied with all relevant documents and details, the CIR will complete the verification process through physical visits of the manufacturing premises and issue a Revocation letter (or otherwise) within six working days.

• In case, the application is not filed within five days of the receipt of the “Detention Order’’ by the importer, the CIR concerned may issue a speaking order within seven working days, thereby excluding the defaulting manufacturer/importer from the concessions put forth in the various circulars. The CIR concerned will ensure the monthly stock-taking of the raw materials consumed by the manufacturing units and file a monthly report by the 10th of each month to the Board.

• Circular 5 of 2021 — Consumption Certificates: The FATA/PATA domiciled manufacturer will apply with the CIR concerned within ten days of consumption of raw material for the issuance of a Consumption Certificate (GD wise) along with all documents and evidence detailed in Para 3 of Circular 05 of 2021. The CIR concerned shall take a decision of issuing the Consumption Certificate within 30 working days from the day the taxpayer applies.

• Circular 13 of 2021 — Exemption Certificate for import of industrial inputs/machinery by the FATA/PATA resident manufacturers: The CIR concerned shall ensure the issuance /rejection of the exemption certificate within seven working days of the receipt of the application.

• In case, according to FBR, the exemption certificate is not issued or rejected by the concerned CIR, the taxpayer shall within seven working days apply to the CCIR, RTO Peshawar for redressal of grievance, which will be addressed within seven days of receipt of the application in the CCIR’s office.

• FBR adds that it is essential that the concerned Commissioner maintains a close liaison with Collector Custom, Peshawar, and receives details of Detention Orders of the raw materials issued by the Collectorate so that a systemic and coordinated effort to enforce the writ of law is ensured.

Source: Pro Pakistani