This blog is written by Mr. Habib Ullah Khan, Associate Taxation Services. Please read this blog and provide your valued comments.

SALES TAX RETURN BASICS [u/s 26 to 28]

A Sales Tax return is the taxpayer’s document of declaration through which taxpayer not only furnishes the details of transactions during a tax period but also determines his sales tax liability.

On the return form, the taxpayer declares, for a particular tax period, his respective input tax and output tax for different categories of taxpayers, monthly, quarterly or annual returns may be filed on prescribed format.

Following returns may be filed under the sales tax act by the taxpayers:

Monthly return: Every registered person shall furnish a true and correct return in the prescribed form up to the 15th day of month next following the end of tax period.

Quarterly return: The Board may, by notification require any person or class of persons to submit return on quarterly basis or may be prescribed annually in addition to the monthly return or quarterly return.

Annual return – U/R 17: A private or public limited company is required to file annual sales tax return, for a financial year by 30th September of the following financial year.

Particulars of Sales Tax Return:

Return should include:

  1. Sales tax registration number (STRN), name and address of registered person.
  2. Tax credit carried forward from previous period.

iii. Value of supplies.

  1. Output tax due on supplies as under:
  2. a) Local taxable supplies
  3. b) Exempted supplies
  4. c) Zero rated supplies
  5. Value of purchases;
  6. Input tax paid on purchases as under:
  7. a) Local taxed goods
  8. b) Imported taxed goods
  9. c) Exempted purchases
  10. d) Zero rated purchases
  11. e) Other purchases

vii. Arrears payable

viii. Amount payable / refundable.

  • The registered person shall deposit the tax payable in the authorized banks.
  • In case there is no sales tax payable of a registered person then, we need to file a “Nil” return without depositing any amount.
  • A registered person may file a revise return to correct any omission or wrong declaration made in a return filed u/s 26 or 27, subject to the approval of the Commissioner Inland Revenue having a jurisdiction of 120 days of filling of return.

In case the registered person have to deposit the amount of tax as pointed out by the officer of Inland Revenue during the audit, or at any time before issuance of the show cause notice, he may deposit the evaded amount of tax, default surcharge under section 34, and 25% of the penalty payable under section 33 along with the revised return.

Habib Ullah Khan