Sales Tax Act 1990: maintaining record for taxable supplies

KARACHI: A person making taxable supplies is required to maintain record of goods and keep at his office for scrutiny by tax officials.

According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 22 of the Act explained the record keeping for taxable supplies.

Section 22: Records

Sub-Section (1): A registered person making taxable supplies shall maintain and keep at his business premises or registered office in English or Urdu language the following records of goods purchased, imported and supplied (including zero-rated and exempt supplies) made by him or by his agent acting on his behalf in such form and manner as would permit ready ascertainment of his tax liability during a tax period –

(a) records of supplies made shall indicate the description, quantity and value of goods, name and address of the person to whom supplies were made and the amount of the tax charged;

(b) records of goods purchased shall show the description, quantity and value of goods, name, address and registration number of the supplier and the amount of the tax on purchases;

(c) records of goods imported shall show the description, quantity and value of goods and the amount of tax paid on imports;

(d) records of zero-rated and exempt supplies;

(da) double entry sales tax accounts;

(e) invoices, credit notes, debit notes, bank statements, banking instruments in terms of section 73, inventory records, utility bills, salary and labour bills, rental agreements, sale purchase agreements and lease agreements;

(ea) Record relating to Gate passes, inward or outward and transport receipts.

(f) such other records as may be specified by the Board:

Provided that the persons paying retail tax shall keep such record as may be specified by the Board.

Sub-Section (1A): Notwithstanding anything in any other law for the time being in force, the Board may require, by notification in the official Gazette, a registered person or class of registered persons to declare and use only as many number of business bank accounts as may be specified by the Board in such notification to make or receive payments on account of purchase and sale transactions for the purpose of this Act or rules made thereunder and to make payment of due tax from such accounts only.

Sub-Section (2): The Board may, by notification in the official Gazette, specify for any class of taxable persons or any other person registered under this Act to keep such other records for the purposes of this Act.

Sub-Section (2A): The Board may, by notification in the Official Gazette, specify for any class of taxable persons registered under this Act to use such electronic fiscal cash registers as are approved by the Board in the manner as may be prescribed.

Sub-Section (3): The Board may, by notification in the official gazette, prescribe the procedure or software for electronically maintenance of records, filing of sales tax returns or refunds and for any other matter or approve any software for electronic maintenance of records and filing of returns or refunds by a person or class of such persons.

Sub-Section (4): The registered persons, whose accounts are subject to audit under the Companies Ordinance, 1984 (XLVII of 1984), shall be required to submit a copy of the annual audited accounts, along with a certificate by the auditors certifying the payment of due tax by the registered person.

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