NTN mandatory for commercial transactions

ISLAMABAD: Quoting National Tax Number (NTN) is mandatory for all commercial transactions under Income Tax Rules, 2002.

The Federal Board of Revenue (FBR) has issued Income Tax Rules, 2002 (updated up to September 08, 2020). According to this updated rule number 83 the displaying and quoting NTN is mandatory.

Rule 83. Displaying and quoting of National Tax Number Certificate.-

(1) Every person deriving income from business chargeable to tax who has been issued with a National Tax Number Certificate shall display the person’s National Tax Number at a conspicuous place at every place of business of the person.

(2) Every person referred to in sub-rule (1) shall quote the person’s National Tax Number in the following circumstances, namely:-

(a) in all commercial transactions entered into by the person;

(b) in cash memos issued under rule 30;

(c) in all returns, statements and other documents required to be furnished under the Ordinance and in any correspondence with the Commissioner; and

(d) in all documents relating to the person’s business on the following matters, namely:-

(i) all new connections of utilities, including water, gas, electricity and telephone;

(ii) the entering into a loan with a banking company or financial institution;

(iii) the opening of letters of credit; and

(iv) the transfer of urban immovable property.

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