Pkrevenue.com

Tag: point of sales

  • FBR to distribute prizes worth Rs53 million every month

    FBR to distribute prizes worth Rs53 million every month

    ISLAMABAD: The Federal Board of Revenue (FBR) will distribute prizes worth Rs53 million every month. The first lucky draw will be held on January 15, 2022. The FBR will distribute the prizes to 1,007 winners.

    The said prize scheme was introduced through Finance Act-2021 which was followed by issuance of rules for the prize scheme on 9th August, 2021 by FBR.

    The computerized balloting for the prize scheme will be held on 15th of every month, the first one on January 15, 2022 at FBR (HQs), Islamabad. Initially, the denomination of prizes has been set as Rs. 10,00,000 (1st Prize), Two prizes of Rs. 500,000, four prizes of Rs. 250,000 and one thousand prizes of Rs. 50,000 each.

    This lucrative Prize Scheme of FBR aims to maximize transparency and plug revenue leakage through real time monitoring of sales.

    It also aims to ensure that tax collected from customers at the point of sale is deposited in state exchequer. This will not only force the Tier-1 retailers to expedite the integration of their retail outlets with FBR POS System but will also encourage the customers to prefer shopping from the POS-integrated retail outlets.

    FBR is expecting a substantial increase in revenue through this innovative initiative as it will reduce tax evasion and minimize concealment of sales by the retailers.

    Customers can participate by verifying the receipt of purchases through Tax Asaan Mobile App of FBR or by sending the invoice number through an SMS on 9966. FBR has launched a very aggressive print and electronic media campaign for the awareness of people across the country.

    The FBR also rebutted disinformation being spread on the social media against the proposed Service Charge of Rs.1 to be collected on all invoices issued by Tier-1 Retailers integrated with FBR’s electronic system of real-time reporting of sales.

    It is being insinuated as if the rate of the Service Charge is 1 percent instead of Rupee 1 per invoice only. This baseless propaganda by some vested interests is thoroughly malicious in intent and definitely suspicious in content.

    The nominal Service Charge at Re.1 per invoice of whatever denomination, would be collected under Section 76 of the Sales Tax Act, 1990. This petty amount will be utilized to ensure integration of all Tier-1 Retailers, promote ongoing publicity campaign, and finance a prize scheme for all customers who duly verify their invoices to determine the validity and genuineness of the invoices issued by the integrated Tier-1 Retailers, FBR further clarified.

    Hence, the above unfounded campaign appears to have been initiated by those vested interests who tend to oppose POS integration. They continue to collect Sales Tax from the general public but are always reluctant to deposit the same in the Government Treasury.

    FBR has reaffirmed its unflinching resolve to continue integrating Tier-1 Retailers across the country with full vigor and an indomitable spirit.

  • FBR decides penal action against defaulting retailers

    FBR decides penal action against defaulting retailers

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to take all penal action and launch prosecution against defaulting Tier-1 retailers.

    In this regard an important meeting was held recently in the FBR headquarter. The meeting was headed by Member Federal Board of Revenue (IR-Operations), Qaiser Iqbal meeting with the top leadership of FBR Field Formations through video link facility.

    READ MORE: FBR redefines Tier-1 retailers for integration

    He reaffirmed his commitment to continue with integration of eligible Tier-1 retailers with full force and vigor.

    He conveyed the unflinching resolve of Adviser to the Prime Minister on Finance and Revenue, Shaukat Tarin with the directions that the largest 500 retailers be fully integrated in the first phase, followed by next 500 and so on.

    The prize Scheme launched by FBR on both Print and Electronic Media was also discussed in details.

    READ MORE: FBR announces first POS prize scheme draw on Jan 15

    He directed the Field Formations to ensure its proper promotion and ensure that the Tier-1 retailers update all their branches on Goolge to facilitate their customers.

    Qaiser Iqbal also stressed upon effective enforcement measures for ensuring true and accurate reporting of sales by Tier-1 integrated retailers.

    READ MORE: Who are Tier-1 retailers under Sales Tax Act? PkRevenue.com

    He emphasized upon adopting all penal and prosecution measures against defaulting Tier-1 retailers on account of non-integration and those involved in tax fraud of any shade or grade.

    He also hoped that Team Inland Revenue would spare no effort nor energy to make this innovative campaign on POS a true success story which promises a significant increase in tax revenue.

  • FBR announces first POS prize scheme draw on Jan 15

    FBR announces first POS prize scheme draw on Jan 15

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday announced that the first balloting for prize money on invoices issued by retailers of Point of Sale (POS) will be held on January 15, 2022.

    The FBR said that thousands of prizes worth a hundred thousand rupees will be distributed every month to the winners after computerized balloting.

    Those buying from POS integrated retailers in the month of December 2021 will be included in the balloting, the FBR said.

    READ MORE: FBR redefines Tier-1 retailers for integration

    The revenue body encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.

    FBR is launching a media campaign for the awareness of people w.e.f. December 11, 2021.

    The FBR previously issued a procedure for participating in the prize scheme.

    The revenue body said that the customers of the integrated tier-1 retailers, whose names and CNICs are notified through random computerized draw shall be entitled to prizes in respect of their purchases from the integrated tier-1 retailers.

    READ MORE: Who are Tier-1 retailers under Sales Tax Act? PkRevenue.com

    The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.

    The application shall notify the customer regarding the status of the invoice either as “verified” or “unverified”.

    In case of a verified invoice, the customer shall furnish one time, the following detail to the online system, namely:-

    Name;

    CNIC; and

    Mobile number

    Names and CNICs of the customers shall be included in the random computerized draw upon fulfillment of the requirement.

    In case of an unverified invoice, the customer shall report the same through the system. The Board shall conduct inquiry and take appropriate action under the relevant provisions of law.

    The computerized draw for the prizes shall be held in the first week of every month at the FBR Headquarters and the invoices of the immediately preceding month shall be entered in the draw.

    Draw winners shall be required to perform biometric verification, at the nearest e-sahulat facility of NADRA and submit a scanned copy on the “tax assan” application. After successful biometric verification, winners shall be required to provide their IBAN through a “tax asaan” application.

    The total prize money and the denomination of the prizes shall be decided on month to month basis by the Board.

    READ MORE: FBR launches prize scheme for POS customers

  • FBR identifies 482 retailers for POS integration

    FBR identifies 482 retailers for POS integration

    ISLAMABAD: The Federal Board of Revenue (FBR) has identified 482 retailers for mandatory integration of Point of Sale (POS) with the tax online system for sharing sales in real-time.

    The FBR issued the list of 482 retailers by notifying Sales Tax General Order (STGO) No. 6 of 2022 dated December 03, 2021.

    The FBR said that the Finance Act, 2019 added sub-section (6) to section 811 of the Sales Tax Act, 1990 whereby a Tier-1 Retailer who did not integrate its retail outlet in the manner prescribed under sub-section (9A) of section 3 of the Sales Tax Act, 1990 during a tax period, its adjustable tax for that period would be reduced by 15 per cent. The figure of 15 per cent has been raised to 60 per cent vide Finance Act, 2021.

    READ MORE: POS installation offers reduced tax rates: LTO Karachi

    In order to operationalize this important provision of law, a system-based approach has been adopted whereby all Tier-1 retailers who are liable to integrate but have not yet integrated, with effect from July-2021 (Sales Tax Returns filed in August 2021) are to be dealt with as per the procedure laid down in STGO No. 1 of 2022 issued on August 03, 2021.

    Vide the instant STGO No. 6, a list of 482 identified tier-1 retailers has been placed on FBR’s web portal at www.fbr.gov.pk allowing them to integrate with FBR’s system by December 10, 2021, and the procedure of exclusion from this list of 482 identified retailers shall apply as laid down in Para 2 of STGO 1 of 2022 dated 03.8.2021.

    Upon the filing of Sales Tax Return for the month of November 2021 for all hereby notified retailers not having yet integrated, their input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount.

    FBR issues list of 1136 retailers for POS integration
  • Trade discount should be displayed on invoice: FBR

    Trade discount should be displayed on invoice: FBR

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday said that trade discount if any to be given by a retailer has to be depicted on the invoice horizontally i.e. from left to right

    The FBR on August 9, 2021 issued SRO 1006(I)/2021 and specified standardized format for sales tax invoice detailing minimum requirement for the integrated point of sale (POS) system.

    The definition of trade discount as mentioned in the value of supply in sub-section (46) of Section 2 the Sales Tax Act, 1990 is meant for Business to Business transactions and does not cover retail sector and the business to consumer transaction.

    The FBR said it had received various representations from the taxpayers and Bar Councils seeking clarification of the term ‘trade discount’ as stated in sub-section (46) of Section 2 of the Sales Tax Act, 1990 whether the term also covers ‘cash discount’ given by retailers to end consumers, for the purpose of depiction in the standardized Sales Tax invoice under SRO 1006(1)/2021 dated 09.08.2021.

    The matter has been examined by the Board, it is clarified that the discount if any to be given by a retailer has to be depicted on the invoice horizontally i.e. from left to right.

    The captions such as total, sales tax paid, discount allowed appearing at the bottom of the invoice are standalone notations and do not necessarily add or subtract one another.

    FBR warns of penalties amid filers grievances
  • POS installation offers reduced tax rates: LTO Karachi

    POS installation offers reduced tax rates: LTO Karachi

    KARACHI: Officials of Large Taxpayers Office (LTO) Karachi have apprised the business community that installation of Point of Sale (POS) offered reduced rate of sales tax.

    A team of tax officials from Large Tax Office (LTO) Karachi visited Pakistan Business Council (PBC) on Wednesday to discuss the integration of Tier-1 retailers, a statement said on Wednesday.

    The purpose of the visit was to listen and redress the grievances regarding the online integration of Tier-1 retailers / Point of Sale (POS) with the FBR system.

    It was apprised to the members that the POS integration of retailers does not involve new tax, rather it gives the benefit of reduced rate of sales tax to consumers who buy the goods from integrated Tier-1 retailers.

    The LTO Karachi team was comprised of officers included: Shakeel Ahmad Kasana, Commissioner-Inland Revenue (IR); Aijaz Hussain, Additional Commissioner-IR; Shoukat Ali Changezi, Additional Commissioner-IR; Abdul Hameed Mangrio Deputy Commissioner-IR; and Amjad Ali Moroojo, Audit Officer-IR.

    The representatives of the PBC were: Ehsan A. Malik, Chief Executive; Samir S. Amir, Director Research; and Aman Chanchi, Unilever Pakistan.

    The Commissioner-IR briefed the members regarding the scope and purpose of POS integration.

    A formal presentation was given by Abdul Hameed Mangrio, Deputy Commissioner which was followed by Q&A session.

    The delegation requested the members to encourage the Tier-1 retailers to get integrated with the FBR system for ease of reporting of sales and avoid unnecessary documentation besides enjoying reduced rates of tax on their supplies.

    The members of the Council appreciated the outreach efforts of FBR to remove the misconception and misgivings regarding the online integration of retailers with the FBR system.

    They appreciated the system and informed that Pakistan Business Council is always encouraged to promote documentation of the economy and Point of Sale (POS) is the right step in this direction.

    They also assured their active engagement for making the Point of Sale (POS) integration a success story for the larger interest of the country and the documentation of the economy.

    FBR issues list of 1136 retailers for POS integration
  • FBR issues list of 1136 retailers for POS integration

    FBR issues list of 1136 retailers for POS integration

    ISLAMABAD: Federal Board of Revenue (FBR) has issued a list of 1136 big retailers for mandatory installation of Point of Sale (POS). The FBR issued Sales Tax General Order (STGO) No. 3 of 2022 on Tuesday.

    The FBR said that through Finance Act, 2019 added a sub-section (6) to Section 8B of the Sales Tax Act, 1990 whereby a Tier-1 Retailer who did not integrate its retail outlet in the manner prescribed under sub-section (9A) of Section 3 of the Sales Tax Act, 1990 during a tax period, its adjustable tax for that period would be reduced by 15 per cent. The figure of 15 per cent has been raised to 60 per cent through Finance Act, 2021.

    In order to operationalize the provision of law, a system-based approach has been adopted whereby all Tier-1 retailers who are liable to integrate but have not yet integrated, with effect from July 2021 (Sales Tax Returns filed in August 2021) are to be dealt with as per the procedure laid down in STGO No.01 of 2022 issued on August 03, 2021.

    Through the latest STGO, a list of 1,136 identified Tier-1 Retailers has been placed on FBR’s portal allowing them to integrate with FBR’s system by October 10, 2021 and the procedure of exclusion from this list of 1,136 identified Tier-1 retailers shall apply as laid down in STGO 01 of 2022 dated August 03, 2021.

    Upon filing of sales tax return for the month of September 2021 all notified Tier-1 retailers not having yet integrated, the input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount.

    FBR imposes service charges on POS invoices
  • KTBA suggests measures for successful POS integration

    KTBA suggests measures for successful POS integration

    KARACHI: Karachi Tax Bar Association (KTBA) on Friday suggested measures for successful integration of Point of Sales (POS). One of the suggestions included that the Federal Board of Revenue (FBR) should launch a mass scale awareness program for integration in order to avoid resistance from the business community.

    KTBA President Muhammad Zeeshan Merchant said that the ongoing enforcement for the installation of POS would result in resistance as retailers were not aware whether they were liable to integrate or not under the law.

    The KTBA President highlighted the problems of lack of information regarding POS installation at a meeting with a team of officers from the Large Taxpayers Office (LTO) Karachi.

    Zeeshan Merchant reiterated that the KTBA fully supports the FBRs stance on POS, being a noble cause for the documentation of the economy and further explained the problems faced by the businessmen in the implementation of POS.

    Merchant said that the STGOs of Tier-1 Retailers issued by the FBR in the case of small traders is unjustified wherein even small shop holders are also included and the FBR has only fixed the criteria of turnover to implementing the POS.

    FBR needs to launch a large-scale campaign for educating Tier-1 Retailers and the general masses regarding the usefulness of bringing Tier-1 Retailers on POS. In this regard, the president of KTBA has given the following suggestions:

    — A unified comittee to the extent of all field offices within Karachi must be constituted to discuss POS issues and solutions at one forum. Discussion on weekly basis must be encouraged and business representatives may also be invited in this forum.

    — Joint seminars having officers from FBR, members of KTBA and representatives of various business organizations must be arranged to address the issues and fears of the business committee being faced in the implementation of POS. This would vanish the resistance and pave a long way for POS. ADCR must be kept active to resolve issues like POS. This would be a harbinger of success, provided there is a positive approach all around.

    — FBR should take penal actions only to the extent of clear cases falling in the definition of Tier-1 Retailers.

    — Retailers are the affected ones for the reason that manufacturers hesitate giving invoices for their purchases, whereas wholesalers and distributors are found nowhere in this chain of POS. If there is no input tax available to them then how would they pay the output tax.

    — To implement POS, media campaign in the form of electronic media, social media, affixing of flyers at common places must be ensured to create awareness among the masses.

    — Reasonable time of four months must be given for implementation of POS to the business committee.

    — One of the fears of the POS liable retailers is that their sale will reach climax due to the implementation of POS and the department would take action against them for the previous five years as well. FBR has to take a policy decisions in this regard to address their genuine fear as to implement POS, the government has to look forward and not backward to move on in the right direction.

    — Service sector needs to be addressed as SRB is also pursuing integration on POS. The retailers, restaurants are therefore in confusion about whom to report in this regard.

    — SRO 779(1)/2020 dated 26.08.2020 needs a Tier-1 Retailer to be a registered person with Sales Tax meaning thereby a taxpayer has to get itself registered in Sales Tax first to implement SRO 779(1)/2020.

    — POS-related expenses are one of the concerns of the small traders.

    — Companies providing POS machines licensed by the Board are creating issues for the retailers. Government / FBR run POS machines must be provided to avoid such issues.

    — It was also suggested that those who are integrated POS should automatically be excluded from the purview of section 8B of the Sales Tax Act, 1990 as prescribed vide SRO 344(I)/2020 dated 29.04.2020.

    — Taxpayers using debit / credit card machines in the past were encouraged to use to bring the economy under documentation and now the same channel is being used to bring them under Tier-1 Retailers by bringing them in the definition of Tier-1 Retailer. This creates agony among the already documented sector and businessmen are now trying to stop using this important tool of documentation anymore.

    — Department must show grace in granting extension in the filing of Sales Tax Return of those taxpayers who have been integrated with POS and are now facing problem in their filing of ST return.

    — In order to achieve success in the POS implementation exercise, sector-wise profiling is recommended including plastic, paper and steel sectors by virtue of which big distributors and wholesalers would come under control thereby reducing the burden on other tiers of the economy.

    — In the last, the success of POS exercise depends upon efficient control on manufacturers and importers.

    The meeting was conducted at LTO, Karachi and attended by: Nisar Ahmed Burki, Additional Commissioner Inland Revenue; Mukhtiar Ahmed Shar, Additional Commissioner Inland Revenue; Anees Ahmed Memon, Deputy Commissioner Inland Revenue; Khush Ahmed Din, Senior Auditor.

    Besides KTBA President Muhammad Zeeshan Merchant, the other members were also at the meeting, who are included: SyedFaiq Raza, General Secretary; Mehmood Bikiya, Vice President; HarisTufail, Joint Secretary; Shiraz Khan, Librarian; and Irfan Ghafoor, Member Admin.

    FBR imposes service charges on POS invoices
  • FBR imposes service charges on POS invoices

    FBR imposes service charges on POS invoices

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday imposed service charges on invoices issued through Point of Sales (POS) that are integrated with the FBR system.

    (more…)
  • Tier-1 retailers given deadline for integration

    Tier-1 retailers given deadline for integration

    The Federal Board of Revenue (FBR) has issued a directive to Tier-1 retailers, urging them to integrate with the FBR’s Point of Sale (POS) System by the stipulated deadline to avoid the denial of input tax credit.

    (more…)