KARACHI: The Federal Board of Revenue (FBR) will collect three per cent further sales tax on supply made to a person not an active taxpayer.
The FBR has been empowered to collect further tax from persons not on active taxpayers list through amendment brought through Finance Act, 2022.
According to explanation of PwC A. F. Ferguson & Co. presently, further tax is chargeable at the rate of three per cent (in addition to applicable rate), if taxable supplies are made to a person who has not obtained registration number.
Finance Act, 2022 provides that further tax would also be chargeable on taxable supplies made to a person who is not an active taxpayer.
Under Sales Tax Act, 1990, a registered person may be delisted from Active Taxpayers List (ATL) under following circumstances.
— Blocklisted or whose registration is suspended;
— Does not file the return by the due date for two consecutive tax periods;
— fails to file an Income Tax return by due date;
— fails to file income tax withholding statement.
In order to apply the amended provisions, FBR may need to amend its online portal to account for situation where a registered person may be active taxpayer, but not at the time of filing of sales tax return, or for a vice versa situation.