KARACHI: Federal Board of Revenue (FBR) has issued procedure for verification of sales tax invoices prepared by Tier-1 retailers.
According to FBR officials the following procedure shall be adopted for the verification of sales tax invoices.
— Customer visits the counter to pay for his/her shopping.
— Counter Boy Prepares the Invoice.
— Invoice is forwarded to FBR system for invoice number.
— Fiscal Invoice is generated and stored in FBR Sale Data Controller and returns a fiscal invoice number to POS.
— Point of Sale (POS) generate the QR Code for fiscal invoice.
— The receipt is printed out from the POS and physically delivered to the customer.
— Customer receives the printed fiscal invoice and verify it from FBR System using any of proposed mode.
The officials said that
Tier -I retailer as defined under Section 2(43A) of Sales Tax Act 1990 are required to integrate their sales with the FBR.
Tier-1 retailer means:-
A retailer operating as a unit of a national or international chain of stores.
A retailer operating in an air conditioned shopping mall plaza or centre, excluding kiosks.
Retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds rupees six hundred thousands.
A wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers.
A retailer whose shop measures one thousand square feet in the area or more.
The officials said that the integrated supplier shall prominently display on each outlet a signboard bearing FBR’s official logo along with the text “Integrated with FBR” and also registration number of each POS verifiable through FBR verification services.
Explaining the benefits of establishing integration with the FBR, the sources said that supplies of finished fabric and locally manufactured finished articles of textile and textile made ups and leather and artificial leather shall be entitled to reduced rate of 14 per cent subject to condition they have maintained 4 percent value addition during the last six months.
Further, customers entitled to receive a cash back of up to 5 per cent of the tax involved in the manner and to the extent as may be prescribed.
The penalty for non-compliance by the Tier-1 retailers, the sources said that under sub section (6) of section 8B of the Act, adjustable in put tax for whole of that tax period shall be reduced by 15 percent.
Penalty as prescribed at serial No.(19) of the section 33 of the Act besides default surcharge under section 34 of the Act.