Thursday, 28 March 2024
Trending
Deadline for tier1 retailers to integrate with point of sales systems of FBR
UPDATES

FBR’s new deadline for big retailers to integrate with POS system to avoid disallowance of input tax

The Federal Board of Revenue (FBR) has directed 482 identified Tier-I Retailers (big retailers) to integrate with the FBR’s point of sale (POS) system by December 10, 2021 to avoid disallowance of input tax claims and creation of tax demands.

The FBR has issued Sales Tax General Order No6 of 2021, here on Friday.

According to the FBR, the Finance Act, 2019 added sub-section (6) to section 811 of the Sales Tax Act, 1990 (“the STA, 1990”), whereby, a Tier-1 Retailer “(T-IR)” who did not integrate its retail outlet in the manner prescribed under sub-section (9A) of section 3 of the STA, 1990 during a tax period, its adjustable tax for that period would be reduced by 15 percent.

The figure of 15 percent has been raised to 60 percent vide Finance Act, 2021.

In order to enforce this important provision of tax law, a system-based approach has been adopted whereby all T-1Rs who are liable to integrate but have not yet integrated, with effect from July-2021 (Sales Tax Returns filed in August, 2021) are to be dealt with as per the procedure laid down in STGO No 1 of 2022 issued on 3rd August 2021.

See also  Eye opening facts of cyber attack on FBR data center

Vide the instant Sales Tax General Order, a list of 482 identified T-1Rs has been placed on the FBR’s web portal at www.fbr.gov.pk allowing them to integrate with the FBR’s system by 10th of December 2021 and the procedure of exclusion from this list of 482 identified T-1Rs shall apply as laid down in para 2 of STGO 1 of 2022 dated 03.8.2021.

Upon filing of sales tax return for the month of November 2021 for all hereby notified T-1Rs not having yet integrated, their input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount, the FBR added.

tax accounting services top tax consultants lahore pakistan
Ads:
Tax.net.pk - Your Tax Experts and Consultants

Welcome to Tax.net.pk

Providing Expert Tax Services for Individuals and Businesses

About Us

At Tax.net.pk, we are dedicated to providing comprehensive tax solutions tailored to meet the needs of individuals and businesses. With years of experience in the industry, our team of tax experts is equipped to handle various tax matters, including tax planning, preparation of tax returns, and compliance.

We strive to stay up-to-date with the latest tax laws and regulations, ensuring that our clients receive accurate and reliable advice. Our commitment to client satisfaction and our in-depth knowledge of the tax landscape make us the trusted choice for all your tax-related needs.

Contact Us

For inquiries or to schedule a consultation, please reach out to us: