The FBR issued SRO 1203(I)/2019 dated October 10, 2019 to make amendments in Sales Tax Rules, 2006.
Majorly, Sales Tax Rules relating to Tier-1 Retailers have been prescribed through this SRO to share their sales data with the Federal Board of Revenue (FBR) computerized system on real-time basis which is effective from December 01, 2019.
Rule 14 Filling of Returns
The following new items have added to specify items and unit of measurement in Annexure “J” of the monthly sales tax return.
|S. No||Product||Unit of measurement|
|49A||DAP Fertilizer||M. Tons|
|49B||Other Fertilizer||M. Tons|
|53||Cane Molasses||M. Tons|
|55||Vegetable Ghee||M. Tons|
|56||Cooking Oil||M. Tons|
|57||Edible Oil||M. Tons|
Rule 18 Electronic filing of return
Due dates for filling of sales tax returns and deposit of sales tax have been added for Brick manufacturers (bricks kilns paying tax under Tenth Schedule to the Act) on quarterly basis).
Payment deadline: 15th day of the month following the end of quarter of the financial year.
Return filing deadline: 18th day following the 15th day as specified above.
Rule-31 (4) Payment by Centralized Sales Tax Refund Office (CSTRO)
Claimant wise Bank advice duly signed by the signatory and co-signatory indicating the amount payable and the declared bank account of the claimant shall also be sent to the State Bank of Pakistan for scrutiny and processing of refund claims filed by manufacturers of specified goods.
Rule-34 Refund of excess Input tax not relating to Zero rated supplies
The manufacturers of “Cotton Ginners” are also allowed to claim refund of excess input tax over output tax in any period.
Refund claimed by the five export-oriented sectors for the tax periods prior to July 2019 shall be claimed and processed under Chapter-V of Sales Tax Rules 2006 as were in force on the 30th June 2019.
Rule-39C Extent of Payment of Refund Claim
The amount of refund shall be determined by input tax actually consumed in exports or supplies or the amount as per ceiling whichever is lower.
Rule-150ZB Electronic Invoice System
Registered person being restaurants, cafes, coffee shops, eateries, snack bars and hotels having such activities are required to install fiscal electronic device and software as approved by the board, and also required to register all branches along POS providing following information:
- POS registration number;
- name of business;
- branch name;
- branch address;
- POS identification number; and
- registration date.
Rule 150ZEA Application
Commencing from 01 December 2019, all Tier-1 retailers shall integrate their retail outlets with FBR’s computerized system for real-time reporting of sale. The sales of finished fabric and locally manufactured finished articles of textile and textile made-ups and leather and artificial leathers would be entitled to reduced sales tax of 14 percent if sales made through integrated outlets.
All particulars of exempt items also required to report in the FBR computerized system.
Rule 150ZEB Electronic Invoicing System
Sales made through social media portals would have same treatment of sales tax in case reported through point of sale in real-time manner.
Rule 150ZEF Consequences of Non-Compliance or Contravention
The FBR warned that the integrated suppliers who were found to have tampered with the system would not be entitled to claim input adjustment and also not be eligible for reduced sales tax rate. Further, the FBR would initiate legal proceedings against such activities besides imposing penalty and recovery of tax.
Please contact us in case any clarification or discussion is required in this regard.