DATE OF ISSUANCE: 16th December, 2020
EFFECTIVE FROM: 01 July 2020
AMENDMENTS MADE IN: Sales Tax Act, 1990
- Amendment has been made in sub-section (4) of section 73 of the Sales Tax act, 1990 whereby registered persons engaged in manufacturing and supply of fertilizer have been excluded form purview of aforesaid sub-section (4), subject to certain conditions.
- Sub-section (4) of section 73 of Sales Tax Act, 1990 states that a registered person shall not be entitled to deduct input tax (credit adjustment or deduction of input tax) which is attributable to such taxable supplies exceeding, in aggregate, one hundred million rupees in financial year or ten million rupees in a tax period as are made to a certain person who is not a registered person under the Sales Tax Act, 1990.
- Through this SRO, registered person engaged in manufacturing and supply of fertilizer have been excluded from purview of sub-section (4) subject to following conditions:
- The registered persons shall provide following documents and details to the Board on or before the 15th day of January, 2021:
- complete list of the dealers or distributors of their products including details of business name, address and NTNs;
- complete list of buyers, other than dealers and distributors, including details of their names, residential addresses and CNICs;
- copies of relevant dealership or distribution agreements, as the case may be;
- details of all business bank accounts of the dealers, distributors or buyers along-with names and addresses of the relevant bank branches;
- dealer or distributor-wise figures of sales made by the registered persons during the period 01.07.2019 to 30.06.20 and 07.2020 till date; and
- any other document specially required by the Board for compulsory registration of dealers, distributors or buyers
- Failure to comply with any of the conditions specified above by due date shall disentitle the registered person for the waiver being granted under this Notification and all provisions of Act shall apply accordingly.
LINK OF DOCUMENT
DATE OF ISSUANCE: 16th December, 2020
EFFECTIVE FROM: From date to be notified
AMENDMENTS MADE IN: Sales Tax Rules, 2006
Through this SRO, after chapter XIV-AA in the Sales Tax Rules, 2002, new chapter XIV-AB namely “Cash Back to Customers” shall be inserted whereby procedure for cash back to the customers of Tier-I retailers who have integrated their retail outlets with the Board’s computerized system has been prescribed.
- Proposed chapter XIV-AA of Sales Tax Rules, 2002 consists of Rules No. 150ZEH to 150ZEJ. In Rule 150ZEI, definitions of “approved outlet”, “eligible goods”, “electronically generated invoice”, “mobile application”, “customer” and “wallet account” have been given.
- Rule 150ZEJ prescribes the procedure for claim of cash back by the customers. All customers of Tier-1 retailers are entitled to redeem 5% of the sales tax paid as cashback on eligible goods of the tax amount as inscribed on the invoice issued by the Tier-I retailers.
- Relevant changes have been made in rule 150ZEE of Chapter XIV-AA of the Sales Tax Rules, 2002.
Procedure for Cash Back:
- To redeem the cash online, the customer shall log on to the mobile application where an independent FBR wallet account shall be created for each customer.
- Approved outlet shall also create an independent FBR wallet account for each customer.
- An identical FBR wallet account shall be created for each point of sale by the approved outlet.
- The customer shall verify the electronically generated invoice through the mobile application.
- As soon as the electronically generated invoice is verified, the system shall automatically calculate the 5% amount of the tax paid on the invoice. The customer shall transfer the amount determined into his FBR wallet account.
- The customer may redeem the earned amount within one month of his purchases accumulated in his FBR wallet account on any approved outlet who shall refund the amount accumulated in the wallet account of the customer after ensuring that the earned amount is transferred from the customer’s wallet account to the approved outlets wallet account.
- The approved outlet shall adjust the amount so refunded to the customer which shall be automatically uploaded from the approved outlet’s wallet account to the sales tax return of the approved outlet for the relevant tax period by auto adjusting the output tax liability.