KARACHI: A person, who is undertaking activities of taxable supplies, is required to maintain record and documents of past six years.
According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 24 explained about requirement of maintaining sales tax record.
Section 24: Retention of record and documents for Six years
A person, who is required to maintain any record or documents under this Act, shall retain the record and documents for a period of Six years after the end of the tax period to which such record or documents relate or till such further period the final decision in any proceedings including proceedings for assessment, appeal, revision, reference, petition and any proceedings before an alternative Dispute Resolution Committee is finalized.
The law regarding retention of record was introduced through Finance Act, 1996. It was initially required by sales tax registered persons to maintain record of past five years.
However, through Finance Act, 2010 time-frame for maintaining record was increased to past six years.
Sales Tax Act 1990: requirement of issuing tax invoice
Sales Tax Act 1990: maintaining record for taxable supplies
Sales Tax Act 1990: Invoice issued by suspended taxpayers not to be entertained for refund, input adjustment
Sales Tax Act 1990: persons required to get registration
Sales Tax Act 1990: exemption on domestic supplies, imports