Sales Tax Act 1990: three years imprisonment for persons fail to get registration

KARACHI: Persons making taxable supplies but failed to get registration with tax department then such persons are liable to three years imprisonment, which may be extendable.

According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the fines and penalties had been prescribed for persons deliberately violated the laws.

According to the law, any person who is required to apply for registration under this Act fails to make an application for registration before making taxable supplies.

Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of tax involved, whichever is higher:

Provided that such person who is required to get himself registered under this Act, fails to get registered within sixty days of the commencement of taxable activity, he shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to an amount equal to the amount of tax involved, or with both.

Any person who fails to maintain records required under this Act or the rules made there under.

Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of tax involved, whichever is higher.

Where a registered person who, without any reasonable cause, in non compliance with the provisions of section 25, –

(a) fails to produce the record on receipt of first notice;

(b) fails to produce the record on receipt of second notice; and

(c) fails to produce the record on receipt of third notice.

Then such person shall pay a penalty of five thousand rupees;

such person shall pay a penalty of ten thousand rupees; and

such person shall pay a penalty of fifty thousand rupees.

Any person who fails to furnish the information required by the Board through a notification issued under sub-section (5) of section 26.

Such person shall pay a penalty of ten thousand rupees.

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