- FBR rescinded its notification No. SRO 992(I)/2019 dated September 4th, 2019
FBR vide its Notification SRO 982(I)/2021 dated August 04, 2021 rescinded its Notification No. S.R.O.992(I)/2019, dated 4th September, 2019. SRO 992(i)/2019 dated 4th September 2019 was issued to fix the minimum value of locally produced goods like Steel Bar and Other Lon Profiles, Steel Billets, Steel ignots / bala, ship plates and other re-rollable iron & steel scrap.
A new S.R.O.985 (I)/2021 dated August 04, 2021 has been issued to prescribe new rates of sales tax on ad valorem basis as per following detail:
|Steel bars 1. and other long profiles||Rs. 140,000 per metric ton|
|Steel billets||Rs. 125,000 per metric ton|
|Steel ingots/bala||Rs. 120,000 per metric ton|
|Ship plates||Rs. 120,000 per metric ton|
|Other re-rollable iron and steel scrap||Rs. 118,000 per metric ton|
In case the value of supply of the goods specified in this Notification is higher than the values fixed herein, the value of goods shall be the value at which the supply is made.
2. PCT Code Substitution in SRO 212(I)/2019 dated March 5th, 2009
FBR vide SRO No. 988(1)/2021 dated July 30th 2021 substituted the “PCT Code 4011.4000”, with the “PCT Code 4011.5000” in earlier issued Notification i.e. S.R.O. 212(I)/2009 dated March 5, 2009.
The substituted PCT code forms part of Schedule I in the Table in column (2) against item No. 8, in column (3) of SRO 212(I)/2019 dated March 5, 2009.
SRO 212(I)/2019 dated March 5, 2009 prescribed custom duty of 0.26% of the FOB value on new pneumatic tyres, of rubber of a kind used in motorcycles (PCT Code 4011.4000). The same has been replaced by pneumatic tyres, of rubber of a kind used on bicycles (PCT Code 4011.5000).
3. Exception of Third Schedule Item from chargeability of Sales Tax at Retail Price
Sugar except where it is supplied as an industrial raw material to pharmaceutical, beverage and confectionery industries was added to Third Schedule of Sales Tax Act, 1990 vide Finance Act, 2021 which is effective from July 01, 2021.
The application of this change has been suspended for the period commencing on the July 01, 2021 and ending on the November 30, 2021 SRO 989(I)/2021 dated August 5, 2021. For items listed in Third Schedule, manufacturers and importer are required to charge Sales Tax at retail price and also required to print or emboss, legibly and prominently, the retail price and sales tax charged on every item.
4. Chapter XIV-AC of Sales Tax Rules 2006 “Prize Scheme”
FBR vide Notification No. S.R.O.1005(1)/2021 dated August 9, 2021 made amendments in the Sales Tax Rules, 2006, by omitting Chapter XIV-AB and thereafter inserting the new Chapter XIV-AC. This chapter defines procedures for Prize Money for Customer of Tier – 1 Retailers and “Mystery Shopping”.
Salient features of the “Prize Scheme Procedures” are as follows: –
- The provisions of this chapter shall apply to the customers of integrated tier-1 retailers in respect of verification of invoices from such retailers.
- The customers of integrated tier-1 retailer, whose names and CNICs are notified through random computerized draw shall be entitled to prizes in respect of their purchases from the integrated tier-1 retailers.
- The customers shall verify the electronically generated invoice of integrated retailers either through “tax asaan” application or by sending sms to number 9966.
- The application shall notify the customer regarding the status of invoice either as “verified” or “unverified”. In case of verified invoice, the customer shall furnish one time, the following detail to the online system, namely: – Name; CNIC; and Mobile number. In case of unverified invoice, the customer shall report the same through system. The Board shall conduct enquiry and take appropriate action under the relevant provisions of law.
- Names and CNICs of the customers having verified invoice shall be included in the random computerized draw.
- The computerized draw for the prizes shall be held in the first week of every month starting from the month of August, 2021 at the FBR Headquarters and the invoices of the immediately preceding month shall be entered in the draw.
- Draw winners shall be required to perform biometric verification, at the nearest e-sahulat facility of NADRA and submit scanned copy on “tax assan” application. After successful biometric verification, winners shall be required to provide their IBAN through “tax asaan” application.
- The total prize money and the denomination of the prizes shall be decided on month to month basis by the Board.
Salient features of the “Mystery Shopping” are as follows: –
- Mystery shopping shall be conducted by a person or the firm, duly authorized by the Board.
- Mystery shopping on random basis shall be carried out from tier-1 retailers.
- The person or firm authorized shall verify the invoices from the online system of FBR and in case of fake or invalid invoice, report the matter to the Board for necessary action as per relevant provisions of the Act and the rules thereunder.
- Any other person may, in case of fake or invalid invoice, report the matter to the Board for necessary action as per relevant provisions of the Act and the rules thereunder.
- The informer for reporting of fake or invalid invoice may claim reward on the basis of the detection and recovery made in consequence of fake or invalid invoice in terms of provisions of section 720 of the Sales Tax Act.
5. Content of the Invoice to be Printed on Invoices issued through Point of Sale (POS)
FBR vide Notification NO. SRO 1006(I)/2021 dated August 9, 2021 has notified contents to be clearly printed on every invoice issued through all Point of Sale (PoS) systems integrated with FBR, as per detail below:
(A) Business information: –
- business name or brand name;
- complete address of the business location;
- FBR’s Sales Tax Registration Number (STRN) and National Tax Number (NTN);
- name of the Tax Office / Formation, the business is registered at; and
- unique PoS registration number;
(B) Invoice details: –
- unique sequential invoice number;
- date and time of sale;
- mode of payment (cash, credit or debit card, cheque or gift vouchers); and
- Optional for business to business (B2B): Name of the buyer / customer / service recipient. (Name is recorded when the customer is liable for the tax or credit or invoice value is above Rs. 100,000/-);
(C) Transaction details: –
- item-wise description of goods or service and (unit) price exclusive of tax;
- tax rate for each item (item wise breakdown of tax rate. Apply 0% if an item is exempt);
- item-wise quantity of goods;
- tax amount;
- total sale value;
- tax charged on the invoice;
- discounts, if any;
- PoS service fee of Re.1/- per invoice;
- total payable amount; and
- total received amount; and
(D) FBR details: –
- FBR fiscal invoice number (XXXXXX-DDMMYYHHMMSS-0001);
- logo of FBR’s PoS invoicing system;
- verifiable QR code. dimensions: 7X7MM; and
- statement in legible font and size: “Verify this invoice through FBR Tax Asaan Mobile App or SMS at 9966 and win exciting prizes in draw”.
6. Chapter XL – Export Facilitation Scheme 2021
FBR vide Notification No. S.R.0.152/2021 dated July 30th 2021, in exercise of the powers conferred by section 219 of the Customs Act, 1969 (IV of 1969), section 50 of the Sales Tax Act, 1990, section 40 of the Federal Excise Act, 2005 and section 237 of the Income Tax Ordinance, 2001( XLIX of 2001), made amendments shall be made in the Customs Rules, 2001, which, as required under sub-section (3A) of the said section 219, were previously published vide Notification No.S.R.O. 902(1)/2021, dated the 9th July 2021, namely:-
In Customs Rules, 2001, after Chapter XXXIX, the following new Chapter shall be added from the 14th August 2021, “Chapter XL – Export Facilitation Scheme 2021”
Silent features of Chapter XL – Export Facilitation Scheme 2021 are as follows: –
- Export Facilitation Scheme 2021 allows acquisition of input goods without payment of duty and taxes subject to following: –
1 – Export performance for last two financial years; and
2 – Firm contract of export.
The applicant can apply for authorization based on both performance and contract basis simultaneously. An applicant having multiple contracts of export may apply for consolidated approval for all such contracts.
- Scope of the scheme: –
This scheme shall be available to the following persons subject to authorization of import, warehouse and purchase of input goods under these rules and registration in the WeBOC or PSW: –
- persons registered under the Sales Tax Act, 1990, as manufacturer-cum-exporter, who make value-addition in the manufacture and export of goods, which shall not be less than ten per cent;
- manufacturers who act or intend to act as contracted vendors of foreign principal as toll manufacturers;
- commercial exporters;
- persons registered under the Sales Tax Act, 1990, as manufacturer and operating as indirect exporters;
- manufacturers including manufacturers of engineering goods who intend to supply against international tenders; and
- Common Export House.
Provided that this scheme shall be allowed for the export of goods authorized under the export policy order. In case of export of goods restricted or prohibited under the export policy order, specific permission from the Ministry of Commerce shall be required.
- Categories of Exporters: –
This scheme categorizes exporters into different categories ranging from Category A to Category C2, based on percentage of export, history of export, compliance profile and for manufacturer cum exporter with no export history, applying for authorization under these rules with a firm contract of export and shall be classified as per the claimed percentage of production to be exported i.e., Category A or B, which shall be subject to review by the Regulatory Collector after one year. An applicant showing a poor compliance profile, i.e., having one or more contravention cases adjudged against him or having pending recovery cases or pending criminal proceedings during the last three years, at the time of application, shall be downgraded for a period of one year.
- Application Procedures for Applicant desirous of utilizing this Scheme: –
Any applicant if eligible and desirous of utilizing this facility may apply online to the Regulatory Collector, in the WeBOC or PSW system, as per the prescribed format given in Appendix I to this chapter i.e. Chapter XL – Export Facilitation Scheme 2021. Application shall be supported by documents as listed in this chapter under Rule No. 875(2).
The applicant shall submit a security instrument equal to the duty and taxes being deferred or remitted, on the approximate value of input goods, during the authorization period along with the application as detailed in Rule No. 876(1).
Application once submitted on WeBOC or PSW system shall assign a unique identification number to each application for authorization.
Rule No. 877 also define procedure for conversion of any existing use of any of the previous scheme like S.R.0 450(1)2001, dated 18.06.2001, Chapter XV, DTRE and S.R.0 327(1)2008, dated 29.03.2008, and intends to shift to Export Facilitation Scheme, 2021
On the basis of scrutiny of an application, Regulatory Collector or Director IOCO, shall upload the value of the input goods allowed to be imported or procured locally in the WeBOC or PSW system.
The authorization for acquisition of input goods can be issued for the maximum period as specified against each category in the table below, namely: –
|Category A||Five years|
|Category B1||Four Years|
|Category B2||Two Years|
|Category C1||Four Years|
|Category C2||Two Years|
The authorization of the value of input goods shall be uploaded for each year based on annual estimated requirement, for the entire authorization period. Authorization to acquire goods for the subsequent year wherever applicable shall be triggered automatically upon submission of the annual reconciliation report by the exporter in the WeBOC or PSW.
The renewal of the authorization shall be subject to satisfaction of Regulatory Collector that no action under the Acts is pending against the user and the user has duly submitted all reconciliation statements as set out in Appendix-IV.
Rule No 880 defines provisions for acquisition of “Input Goods” and conditions attached with it and Rule No 881 defines provisions for acquisition of “Plant, Machinery and Spares” and conditions attached with it and self-explanatory.
Scheme also defines procedures of Amendment, suspension, or cancellation of the approval, Utilization period, Export of output goods or supply against international tenders, Procedure for international toll manufacturing, Domestic sales, Unused input goods, Un-exported output goods, Duty drawback of duty paid input goods, Refund of sales tax, Records and documents, Reconciliation statement, Audit, Power to suspend the facility, Remission of Customs duty, Federal Excise duty and sales tax in case of a force majeure or destruction of goods, Transfer of ownership etc., details may be found in the Notification.
7. Effective Date for Online Market Place to withhold Sales Tax from Persons other than active taxpayers
Finance Act, 2021 enhanced the scope of Eleventh Schedule of Sales Tax Act, 1990 to include Online Market places as “Withholding Agent” from the date to be notified by FBR. the said date has been notified now vide S.R.O.984(1)/2021 dated August 4th 2021 that directs “online market places” to withhold sales tax @ 2% of gross value of supplies purchased from Persons other than active taxpayers with effect from September 01, 2021.