Thursday, 29 February 2024
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CNIC condition to be withdrawn on Digital Mode of payments
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CNIC condition to be waived on digital payment

The Federal Board of Revenue (FBR) may withdraw the condition of providing details of Computerized National Identity Card (CNIC) in case payment made through digital means.

The Finance (Supplementary) Bill, 2021 proposed to waive the condition of CNIC and NTN where payment has been made through debit card, debit card or other digital modes.

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PwC A. F. Ferguson & Co. in their memorandum on the bill stated that sales tax law requires every registered person while making sales to unregistered person to provide CNIC or NTN of unregistered buyer except where supplies are made by a retailer involving transaction value not exceeding Rs 100,000.

The Bill proposes to waive the condition of providing CNIC in such cases where payment is made through debit or credit card or digital mode.

It is presently provided that where CNIC provided by buyer is not correct, liability of tax or penalty would not arise against the seller in case of sale made in good faith.

The Bill proposes to withdraw the said provision, which may result in unwarranted action against the seller and litigation (as sellers are generally unable to verify the CNIC provided by buyer).

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SALE TO UNREGISTERED PERSONS – CNIC (PwC A. F. Ferguson & Co. memorandum)

Sales tax law requires every registered person while making sales to unregistered person to provide CNIC or NTN of unregistered buyer except where supplies are made by a retailer involving transaction value not exceeding Rs 100,000.

The Bill proposes to waive the condition of providing CNIC in such cases where payment is made through debit or credit card or digital mode.

It is presently provided that where CNIC provided by buyer is not correct, liability of tax or penalty would not arise against the seller in case of sale made in good faith. The Bill proposes to withdraw the said provision, which may result in unwarranted action against the seller and litigation (as sellers are generally unable to verify the CNIC provided by buyer).

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