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Registration of Tier1 Retailers with Point of Sale Software of FBR
TAXATION

Who is required to Get Register with Point of Sales Software of FBR ?

All tier-1 retailers are required to integrate all their POSs with FBR’s computerized system.

All tier-1 retailers are required to integrate all their POSs with FBR’s computerized system. ‘Tier-1 retailer’ is defined in section 2(43A) of the Sales Tax Act, 1990, to be a person who falls in any of the following categories:
(a) a retailer operating as a unit of a national or international chain of stores;
(b) a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks;
(c) a retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rupees twelve hundred thousand;
(d) a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers”; and
(e) a retailer, whose shop measures one thousand square feet in area or more.

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What will be the rate of sales tax for items sold by the Tier 1 retailers Integrated with Point of Sales system of FBR ?

The rate of sales tax for items sold by integrated retailers shall be the same as for all other suppliers as provided under the Sales Tax Act, 1990. Only exception is for locally manufactured textile and leather items, which if sold by integrated retailers are subject to concessionary rate of 14%, and if sold by any other supplier are subject to 17% standard sales tax. Category-wise rates for items sold by integrated retailers is as below:

S.NOItem categoryRate of sales taxExamples
1-Items falling in Sixth
Schedule to the Sales Tax
Act, 1990
Exempt i.e. no sales tax to
be charged
Milk, rice, wheat flour, pulses,
fruits & vegetables (except canned
and packaged), uncooked meat,
poultry, eggs, stationary items,
medicines, laptops and personal
computers etc
2-Items falling in Eighth
Schedule to the Act
Reduced rate as provided
in the Schedule
Dairy items other than milk, fatfilled milk (tea-whitener), flours
other than that of wheat, if sold in
retail packing under a brand name,
are subject to sales tax rate of 10%;
and prepared products of meat or
meat offal, if sold in retail packing
under a brand name, are subject to
sales tax rate of 8%;
Precious jewellery at 1.5% of value
of gold, plus 0.5% of value of
diamond, used therein, plus 3% of
making charges
3-Finished fabric, and
locally manufactured
finished articles of textile
and textile made-ups and
leather and artificial
leather (See S. No. 66 of
Table 1 of Eighth
Schedule)
14%Locally manufactured Garments,
shoes, bags, made-ups etc of textile,
leather and artificial leather
4-Mobile phones and
satellite phones
Under Ninth Schedule,
sales tax is to be paid by
the importer and
manufacturers only. No
sales tax to be charged on
subsequent supplies.
However, suppliers may
pass on the burden of sales
tax charged on their
purchases in their selling
price.
Mobile phones and satellite phones
5-Items not covered aboveStandard 17%Items in Third Schedule except
fertilizers, imported textile and
leather items, electronic items,
watches, sugar, hardware, sanitary
ware, kitchenware, toys, furniture,
sports goods, surgical instruments,
crockery, plastic products, imitation
jewellery, etc
Rates of Sales Tax of Tier 1 Retailers
Top Tax Consultants Tax Return submission Last Date
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Tier 1 Retailers | FBR List | FBR | Federal Board of Revenue | Tier 1 Retailers Registration | Rate of Sales Tax | Third Schedule of Sales Tax Act 1990 |

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