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Single National Sales Tax Return Errors Found and Tax Help

Legal and Operational Issues with National Single Sales Tax Return

Federal and provincial taxpayers are facing problems in filing the Federal Board of Revenue (FBR)’s National Sales Tax Return (STR), which was formally launched by Finance Minister Shaukat Tarin on January 7, 2022.

Earlier, the FBR informed all concerned that the STR for the tax period of December 2021 will be filed through the Single Sales Tax Portal.

There are several issues of registered person to file Single National Sales Tax Return.

Hence, limited number of taxpayers were able to file the said return.

Tax Experts about Single National Sales Tax Returns

Different tax experts have highlighted several issues and are expecting that extension till at least 25 January 2022 for payment and 28 January 2022 for return filing would be granted by the FBR. Elaborating the issues, based on arranging several Single Sales Tax Portal workshops, they told that in Annexure “C”, it should be NTN and CNIC (both) base and name of the business as well as proprietor should be shown, and invoices feeder should be in “Ascending Order”, as such, the portal is indicating Annexure C due date as 20 January 2022 for supplier.

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Hence most of the registered persons have not filed the Annexure C.

This is leading to not fetching input data for buyers in their Annexure A. Tax experts added that services input are not available to be adjusted against output. Unclaimed input tax invoices for the previous six months are not being shown.

November carried forward balance is not being shown as brought forward for December. This is leading to major payment by the registered persons, hence, no one would like to file the return.

About import and export, he highlighted that in Annexure B about Import Data is successfully being downloaded but not shown in main page of the return.

Export data are not available in most of the cases.

Moreover, tax experts stated that bulk unregistered sales are also not being entertained.

This was being accepted in November return.

Section 8B exclusion is not available keeping in view SRO 1190.

Regarding Excel template, Tax experts stated that Excel file template is not working properly.

Excel file template is incomplete as not showing filters in December; as being shown in November. Different rate of sales tax is not showing in Excel file template in certain cases.

He added PSID is not possible on the New Single ST Portal.

Lahore Tax Bar about single National Sales Tax Return

Lahore Tax Bar vide Letter dated 11 January 2022 stated about errors in Single ST Portal and requested the FBR to extend the last date of filing of Single Sales Tax Return for December 2021 upto31.1.22 and compliance period to this portal up to 30 June 2022.

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Khurram Shahzad Aslam, tax consultant has also mentioned some very fundamental issues in Single Sales tax return. These are mentioned here:

Implementation Model

For the implementation of National Single Sales Tax Return no change or amendment has been brought into tax laws / rules of Federal and Provincial tax authorities. Particularly, amendment in Sales Tax Act, 1990 and Sales Tax Rules, 2006 needs amendment through which implementation of such Single sales tax return can be referred.

Nil filing of Sales Tax Return of All Provinces

Documentation needs regarding Nil filing of sales tax returns of provincial tax authorities. Because, in the presence of single sales tax return what provincial tax authorities will consider regarding nil returns. Provinces are silent on this issue of filing of Single sales tax return.

Extension of Returns

Iris module provided by FBR for filing single sales tax return lacks any facility for applying of extension in filing sales tax return. Moreover, to whom taxpayer will write / apply for provincial extensions in filing sales tax returns ?

Revision of Returns

Now, in the presence of FBR’s Single sales tax return to whom taxpayer will write / apply for provincial revision of sales tax returns ? Further, module of filing online application for revision is also not available.

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Export of Services and Annexure is missing

Need to further elaborate term export services. Which province will collect sales tax on export services.

For declaring Export of service no separate annexure has been provided in the single sales tax return module.

Annual Sales Tax Return

Separate module for filing Annual sales tax return has not been given in the Single National Sales Tax Return of FBR.

Problems of Collection of Taxes

After 18th amendment collection of sales tax on services is right of provincial tax authorities. But now FBR will collect their sales tax also and afterwards will distribute to respective provinces. But no amendment in tax laws has been brought in this regard. It is an operational nature of issue which needs to consider by tax authorities.

Selection of Tax Rates

Bifurcation and implementation issue of tax rates according to provincial laws in the presence of reduced sales tax rates and selection of sales tax rates for input sales tax adjustment decision. Particularly, as per laws of Sindh Revenue Board.

Gilgit Baltistan (GB) & AJK manual filing and registration

Taxpayers coming under both the tax authorities of Gilgit Baltistan and AJK will need to take access of portal of FBR (Login and Passwords). Before Single sales tax return module they both have their own tax portals for filing tax returns.

E-intermediary Facility

In the Single National Sales tax return module of FBR, it lacks facility to enter the particulars of e-intermediaries. Due to which tax consultants are facing problems.

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Source: Business Recorder | Khurram Shahzad - Your Tax Experts and Consultants

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