- Sales Tax Registration and Change of Particulars.
- Maintenance of Sales Tax record u/s 21 of Sales Tax Act.1990.
- Filing of Monthly Sales Tax Returns.
- Filing of Annual Statement Summary as required under the Sales Tax Act.1990.
- Sales Tax Refund.
- Finalization of Pre-Audit, Audit, Post Audit, and Pre-Refund Audit.
- Processing reply of Audit Observations, Show Cause notices, and Appeals and representation on behalf of respected Clients.
- De-Registration as per Sales Tax Act.1990.
- Provisional Sales Tax,
POINT OF SALE (POS)
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SALES TAX GUIDE
LIABILITY TO SALES TAX
Following sectors are required to get registration for sales tax and charge sales tax on their supplies/ services:
- Distribution, Wholesale & Retail stage.
Previously it was being charged at the manufacturing & import stage, and its scope has been extended now to the remaining sectors.
Sales Tax is chargeable on all locally produced and imported goods except computer software, poultry feeds, medicines, and unprocessed agricultural produce of Pakistan and other goods specified in Sixth Schedule to The Sales Tax Act, 1990.
Every person in the sectors mentioned above, who makes a taxable supply in Pakistan is required to be registered under the Sales Tax Act. However, manufacturers having taxable turnover below five million rupees and also utility bill below Rs. Seven lac during the last twelve months are exempted from registration and payment of sales tax. A similar exemption is also available to retailers having a total turnover below Rs. five million in the last twelve months.
The rate for sales tax is 16% of the value of supplies. However, there are some items that are chargeable to sales tax at 18.5% or 21% of the value of supplies (see SRO 644(I)/2007 as amended by SRO 537(I)/2008 dated 11th June 2008)
The Registration Form(s) are submitted to the Central Registration Office, FBR, or Sales Tax Collectorates/ RTOs for the allotment of a Registration Number by the persons liable to be registered under the Sales Tax Act. The taxpayer is then issued a Certificate of Registration.
As per law, each registered person must file a return by the 15th of each month regarding the sales made in the last month.
All registered persons are required to file returns electronically and in such cases, the payment is to be made by the 15th and the return can be submitted on FBR’s e-portal by the 18th.
Detailed procedure in this respect is given in Sales Tax General Order no. 04 of 2007.
Some sectors are required to file returns on a quarterly (tri-monthly) basis e.g. retailers including dealers of specified electric goods and CNG dealers.
MAINTENANCE OF RECORDS
All registered persons are required to maintain records at their business premises of the goods purchased and supplied made by them. All the records are required to be kept for 5 years.
Refund of Sales Tax
In cases where the Input Tax exceeds the Output Tax due from the registered person in respect of a tax period because of exports or other zero-rated supplies, the excess amount of input is refunded back to the taxpayer within 45 days. In all other cases of excess input tax, the Board can specify the procedure for refund.
If a registered person does not pay the tax within the specified time or claims a tax credit or refund which is not admissible to him or incorrectly applies the rate of zero percent to the supplies made by him, he has to pay the additional tax at the following rates:
One and a half percent of the tax due or the part thereof per month;
However, in case of tax fraud, the rate of additional tax shall be two percent per month.
The work regarding Arrears gets initiated in the following cases:
- Late or no submission of the Returns.
- Amount paid is less than the tax amount payable.
- Demand is raised after an audit/ scrutiny is upheld after adjudication.