Karachi, January 4, 2025 – The Federal Board of Revenue (FBR) has made it mandatory for registered taxpayers to furnish comprehensive transaction details in their sales tax returns.
This directive, aimed at ensuring transparency and compliance, requires taxpayers to adhere to the provisions outlined in Section 26 of the Sales Tax Act, 1990.
Under Section 26 of the Sales Tax Act, 1990, the FBR stipulates that all registered persons must submit accurate and complete returns by the due date. These returns must include detailed records of sales, purchases, taxes due, taxes paid, and any additional prescribed information. The returns are to be filed electronically through designated banks or other offices specified by the FBR.
The FBR has emphasized the importance of digital filing, noting that returns submitted electronically via the web or other computer-readable media will be considered valid. To facilitate this process, the FBR may issue notifications defining eligibility criteria for electronic data submission and the roles of e-intermediaries responsible for digitizing and transmitting the data securely.
To address non-compliance, the FBR allows officers of Inland Revenue to issue notices to individuals or entities that fail to file returns. These notices require submission within a specified timeframe, generally within 15 days of receipt, though this period may vary. In cases of tax fraud, such notices can be issued up to 15 years after the relevant financial year, while for other cases, the limit is five years.
The FBR also permits taxpayers to file revised returns to correct omissions or inaccuracies. Taxpayers can do so within 120 days of the original filing, subject to approval from the Commissioner Inland Revenue. If revisions are made within 60 days and result in higher tax payments or lower refund claims, no additional approval is required.
For those who voluntarily disclose and pay any evaded taxes before an audit notice is issued, the FBR provides penalty waivers, provided the taxpayer deposits the evaded tax amount along with the applicable default surcharge. However, penalties escalate if payment occurs after receiving an audit notice or show-cause notice.
Additionally, the FBR reserves the right to require specific details or summaries of transactions for particular goods or sectors through official notifications. This measure underscores the FBR’s commitment to enhancing accountability and ensuring compliance within the tax framework.
The FBR’s latest directive reinforces its role in promoting fiscal discipline and transparency in Pakistan’s taxation system.