Introduction
Federal Board of Revenue issued Notifications ref: 250(1)/2019 dated dated Feb 26, 2019.
Commentary
Sales tax & Federal Excise:
The Chapter XIV-B have been substituted vide above mentioned SRO. The chapter titles “Electronic Monitoring and Tracking of Specified Goods and Licensing Thereafter”. The Rules sub-chapter-1 applies on “Tobacco products, Beverages, Sugar, Fertilizers & Cement” for tracking and monitoring on real time basis. The Rules defines and prescribes goods to be affixed with tax stamps, banderoles, stickers, labels, barcodes, etc.
While sub-chapter-2 prescribes rules for following:
- Licensing of companies for electronic monitoring, tracking and tracing of specified goods
- Functioning of licensing committee
- Application for grant of a license
- Criteria for grant of license
- Procedure for grant of a license
- Rights granted to the licensee
- Terms and conditions of the license
- Renewal of the license
Sub-chapter-3 prescribes the following responsibilities of the Licensee:
- Licensee to run and manage the system
- Establishment of Central Control System
- Establishment of regional control rooms
- Requirement to be met at the factory premises and at imports
- Technical and training support
Sub-Chapter – 4 prescribes the supervision of the system, enforcement and early termination as follows:
- Responsibility of the Project Director
- Procedure for cancellation or termination of license
Sub-Chapter – 5 prescribes the fee and charges, its determination and revision.
Sub-chapter – 6 prescribes functions and responsibilities of others under the following heads:
- Functions and responsibilities of the manufacturer and importer of specified goods
- Functions of the Commissioner Inland Revenue
- Responsibility of persons involved in the supply chain
And Sub-chapter-6 under the head Miscellaneous states about the following:
- Liabilities of the licensee
- Establishment of Inland Revenue enforcement network
- Functioning of IR enforcement network
- Audit on yearly basis.
Link of Document(s)
