Digital mode of payment: 40-day grace period granted to corporate sector ends
Digital mode of payment: 40-day grace period granted to corporate sector ends

ISLAMABAD: The 40 days grace period granted by the Federal Board of Revenue (FBR) to the corporate sector for switching over to the digital mode of payment has expired on October 31. Legally, the FBR has enforced digital mode of payments for the corporate sector from November 1, 2021. So far, the FBR has not issued any further extension in the said grace period.

Tax experts told Business Recorder that the corporate sector practically cannot switch over to the digital mode of payment from November 1 in the absence of definition of the "digital mode". The FBR has to clarify the definition of the "digital mode". Business community is not clear that what payment comes within the purview of "digital mode"?

The FBR had allowed the corporate taxpayers a grace period of 40 days to switch over to the digital mode of payments w.e.f. November 1, 2021 under Tax Laws (3rd Amendment) Ordinance, 2021.

This new provision is just like implementing the CNIC condition which cannot be enforced for the last many years. Keeping in view practical difficulties of the corporate sector, the FBR may extend the grace period, which has expired on October 31.

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