Karachi, April 23, 2024 – The Federal Board of Revenue (FBR) is contemplating the reintroduction of the prize scheme for invoices issued via Point of Sale (POS) systems to promote better documentation of retail transactions.
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FBR Seals Ghani Sons Branches for POS Violation
Karachi, December 13, 2023 – The Federal Board of Revenue (FBR) has sealed multiple branches of Ghani Sons, a prominent uniform manufacturer, for violating Point of Sale (POS) regulations.
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FBR Restricts Retailers from Issuing Temporary Sales Tax Invoices via POS System
Karachi, December 7, 2023 – The Federal Board of Revenue (FBR) has implemented a directive preventing integrated retailers from issuing temporary sales tax invoices through the Point of Sale (POS) system.
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FBR announces prize winners of 10th POS balloting
ISLAMABAD: Federal Board of Revenue (FBR) on Saturday announced prize winners of 10th balloting of invoices issued by point of sales (POS) of big retailers.
According to the FBR, the bumper prize of Rs1,000,000 has been awarded to Muhammad Imran on the invoice issued by Super Drugs.
READ MORE: FTO directs stop unlawful recovery from taxpayers’ bank accounts
The FBR announced winners of two second prizes of Rs500,000 each to Khawaja Fahd Naveed on the invoice issued by Bread and Beyond and Muhammad Yasir Ehsan on the invoice issued by Clinix.
Similarly, the four winners of third prize amounting Rs250,000 each have been awarded to Faiz Ahmed, Shahiryar khalid, Muhammad Sufyan and Mohsin Hassan.
The FBR conducts computerized balloting of invoices issued by Tier-1 retailers on every 15th day of a month. This was ninth draw as it was started in January 15, 2022.
READ MORE: FBR collects Rs196 billion as income tax from salaried class
The FBR encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.
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.
The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.
READ MORE: WHT share in direct taxes jumps to 67% despite omitting provisions
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.
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FBR directs 85 big retailers to integrate businesses
ISLAMABAD: Federal Board of Revenue (FBR) has directed 85 big retailers to integrate their businesses with the Point of Sale (POS) system.
In this regard, the FBR issued Sales Tax General Order (STGO) No. 04 of 2023 regarding mandatory integration of Tier-1 retailers with the FBR’s POS System.
The revenue body said that the Finance Act, 2019 added sub-section 6 to section 8B of the Sales Tax Act, 190 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 the 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.
READ MORE: FBR issues one million tax notices to enforce compliance
The FBR further stated that in order to operationalize the important provision of law, a system-based approach has been adopted whereby all T-IRs 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 3, 2021.
READ MORE: FBR unveils plan to achieve Rs7.47 trillion revenue collection target
Through latest STGO, the FBR issued a list of 85 Tier-1 retailers, directing them to integrate with the FBR system by October 10, 2022 and the procedure of exclusion from this list of 85 identified Tier-1 Retailers shall apply as laid down in STGO 17 of 2022 issued on May 13, 2022.
READ MORE: Customs officer awarded major penalty of rank demotion
Upon filing of sales tax return for the month of October 2022 for all hereby notified Tier-1 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.
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FBR announces prize winners of 9th POS balloting
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday announced prize winners of 9th balloting of invoices issued through Point of Sales (POS) installed by big retailers.
According to the FBR, the bumper prize of Rs1,000,000 has been awarded to Asfar Imam on the invoice issued by Rehmat e Shereen.
READ MORE: FBR announces prize winners in eighth draw of POS invoices
The FBR announced winners of two second prizes of Rs500,000 each to Irum Abid on the invoice issued by PCC Express and Abdul Qadir on the invoice issued by Imtiaz Provision Store.
Similarly, the four winners of third prize amounting Rs250,000 each have been awarded to Muhammad Imtiaz, Muhammad Aman Ullah Khan, Aamir Hasib Malik and Nadeem Hassan Gohar.
The FBR conducts computerized balloting of invoices issued by Tier-1 retailers on every 15th day of a month. This was ninth draw as it was started in January 15, 2022.
READ MORE: FBR announces prize winners of 7th draw of POS invoices
The FBR encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.
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.
The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.
READ MORE: 101 retailers given July 10 as deadline for integration
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.
READ MORE: Sindh integrates 56 restaurants for online tax monitoring
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.
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FBR announces prize winners in eighth draw of POS invoices
ISLAMABAD: The Federal Board of Revenue (FBR) on Monday announced winners of eighth balloting of invoices issued through Point of Sale (POS) of retailers.
According to the FBR, the bumper prize of Rs1,000,000 has been awarded to Muhammad Usama Shakeel on the invoice issued by Chase Up.
READ MORE: FBR announces prize winners of 7th draw of POS invoices
The FBR announced winners of two second prizes of Rs500,000 each to Muhammad Faisal Sadiq on the invoice issued by Metro Pakistan (Pvt) Limited and Muhammad Imran on the invoice issued by CSD.
Similarly, the four winners of third prize amounting Rs250,000 each are awarded to Muhammad Talha Asif, Faizan Ali and Abdul Rehman.
The FBR conducts computerized balloting of invoices issued by Tier-1 retailers on every 15th day of a month. This was eighth draw as it was started in January 15, 2022.
The FBR encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.
The FBR previously issued a procedure for participating in the prize scheme.
READ MORE: 101 retailers given July 10 as deadline for integration
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.
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.
READ MORE: Sindh integrates 56 restaurants for online tax monitoring
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.
READ MORE: FBR issues procedure for restoration of input tax adjustment
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.
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101 retailers given July 10 as deadline for integration
ISLAMABAD: The Federal Board of Revenue (FBR) has issued a list of 101 retailers and directed them to integrate by July 10, 2022 otherwise action will be taken as per law.
The FBR issued Sales Tax General Order (STGO) No. 1 of 2023 related to Tier-1 retailers for integration with FBR’s Point of Sale (POS) system.
READ MORE: FBR issues list of 113 retailers for mandatory integration
The Finance Act, 2019 added sub-section (6) to section 8B of the Sales Tax Act, 1990 whereby a Tier-1 Retailers 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.
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 3, 2021.
READ MORE: RTO-II Karachi seals electronics shop for integration failure
Vide the instant Sales Tax General Order, a list of 101 identified Tier-1 Retailers has been placed on FBR’s web portal allowing them to integrate with FBR’s system by July 10, 2022 an the procedure of exclusion from this list of 101 identified Tier-1 Retailers shall apply as laid down in STGO 17 of 2022 dated May 13, 2022.
Upon filing of Sales Tax Return for the month of June, 2022 for all hereby notified Tier-1 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.
READ MORE: RTO-II Karachi seals Baklava Palace for integration failure
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RTO-II Karachi seals Baklava Palace for integration failure
KARACHI: Regional Tax Office (RTO) – II, Karachi on Monday sealed a sweet shop i.e. M/s. Baklava Palace for failure to mandatory integrate with online system.
RTO – II, Karachi, an arm of the Federal Board of Revenue (FBR), while continuing its crackdown against non-compliant Tier-1 retailers, sealed the business premises of M/s. Baklava Palace, located at Khayaban-e-Shamsheer, DHA Phase V, Karachi.
READ MORE: RTO-II Karachi seals electronics shop for integration failure
The RTO –II Karachi during its drive against non-compliant Tier-1 Retailers had sealed many other retail outlets including Dhamtal and Rafi Electronics.
According to officials at Zone-III, RTO-II, Karachi said that the tax office had already passed an order on January 01, 2022 against the Tier-1 retailer for mandatory integration.
“M/s. Baklava Palace (NTN 2668310-5) is conducting taxable activities as a retailer and comes under the purview of Tier-1 retailer as defined under clause (a) and (e) of Section 2(43A) of the Sales Tax Act, 1990.
READ MORE: FBR issues procedure for restoration of input tax adjustment
“As per 2nd provisio of Section 3(9A) of the Sales Tax Act, 1990, read with clause (2) of Rule 150ZEA of the Sales tax Rules, 2006, they were required to integrate their Point of Sale (POS)/retail outlet with the FBR’s computerized system for real-time reporting of sales in the mode and manner prescribed in Chapter XIV-AA of the Sales Tax Rules, 2006.
“The taxpayer is also included in STGO No. 16 of 2022 dated May 06, 2022. However, record shows that M/s. Baklava Palace has not integrated their POS / retail outlet till date,” the official told PkRevenue.com
All the Tier-1 retailers are required to integrate with the FBR under Section 33 of the Sales Tax Act, 1990. The RTO-II had warned the Tier-1 retailer that in case it failed to integrate in the manner as required under the Sales Tax Act, 1990 and the rules made thereunder, the business premises will be sealed.
READ MORE: POS service fee issue hampers sales tax return filing
Under the Sales tax Act. 1990: it is an offence: “A person required to integrate his business as integrated under sub-section (9A) of Section 3, who fails to get himself registered under the Act, and if integrated, fails to integrate in the manner as required under the law and rules made thereunder.”
The penalties for the offence are included as:
(i) penalty of five hundred thousand rupees for first default;
(ii) penalty of one million rupees for second default after fifteen days of order for first default;
(iii) penalty of two million rupees for third default after fifteen days of order for second default;
(iv) penalty of three million rupees for fourth default after fifteen days of order for third default:
READ MORE: FBR issues list of 185 retailers for mandatory integration
Notwithstanding above, the business premises of such person shall be liable to be sealed by an officer of Inland Revenue in the manner prescribed.
Provided that if the retailer integrates his business with the Board’s Computerized System before imposition of penalty for second default, penalty for first default shall be waived by the Commissioner.
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FBR issues list of 113 retailers for mandatory integration
ISLAMABAD: The Federal Board of Revenue (FBR) has issued a list of 113 retailers and directed them to integrate by June 10, 2022 otherwise action will be taken as per law.
The FBR issued Sales Tax General Order (STGO) No. 18 of 2022 related to Tier-1 retailers for integration with FBR’s Point of Sale (POS) system.
READ MORE: FBR issues list of 185 retailers for mandatory integration
The Finance Act, 2019 added 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 substituted by 60 per cent vide Finance Act, 2021.
READ MORE: FBR issues list of 1,358 retailers for mandatory POS
In order to operationalize this important provision of law, a system-based approach has been adopted whereby all Tier-1 Retailers who were liable to integrate but have not yet integrated, with effect from July 2021 (Sales Tax Returns filed in August 2021) are not be dealt as per the procedure laid down in STGO No/ 1 of 2022 issued on August 3, 2021.
READ MORE: Prize scheme on invoices issued by retailers
Under this STGO, a list of 113 identified Tier-1 Retailers has been placed on FBR’s web portal allowing them to integrate with FBR’s system by June 10, 2022 and the procedure of exclusion from this list of 113 identified Tier-1 Retailers shall apply as laid down in STGO 17 of 2022 dated May 05, 2022.
The FBR said that upon filing sales tax return for the month of May 2022 for all hereby notified Tier-1 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.
READ MORE: FBR decides penal action against defaulting retailers