Tag: Sales Tax Act 1990

Taxpayers are liable to pay default surcharge in case the due payment is not deposited in national kitty in time under Section 34 of the Sales Tax Act, 1990.

The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

Following is the text of section 34 of the Sales Tax Act, 1990:

34. Default Surcharge.– (1) Notwithstanding the provisions of section 11, if a registered person does not pay the tax due or any part thereof, whether wilfully or otherwise, in time or in the manner specified under this Act, rules or notifications issued thereunder or claims a tax credit, refund or makes an adjustment which is not admissible to him, or incorrectly applies the rate of zero per cent to supplies made by him, he shall, in addition to the tax due, pay default surcharge at the rate mentioned below:—

(a) the person liable to pay any amount of tax or charge or the amount of refund erroneously made, shall pay default surcharge at the rate of twelve per cent per annum, of the amount of tax due or the amount of refund erroneously made; and

(c) in case, the default is on account of tax fraud, the person who has committed tax fraud shall pay default surcharge at the rate of two per cent per month, of the amount of tax evaded or the amount of refund fraudulently claimed, till such time the entire liability including the amount of default surcharge is paid.

(2) For the purpose of calculation of default surcharge, –

(a) in the case of inadmissible input tax credit or refund, the period of default shall be reckoned from the date of adjustment of such credit or, as the case may be, refund is received; and

(b) in the case of non-payment of tax or part thereof, the period of default shall be reckoned from the 16th day of a month (following the due date of the tax period to which the default relates) to the day preceding the date on which the tax due is actually paid.

Explanation.– For the purpose of this section tax due does not include the amount of penalty.

(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

Tax officials may face criminal proceedings under ST Act

The Federal Board of Revenue (FBR) may initiate criminal proceedings under section 33A of Sales Tax Act, 1990 against tax officers/officials of the Inland Revenue for committing an act that results in undue benefit.

The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

Following is the text of section 33A of the Sales Tax Act, 1990:

33A. Proceedings against authority and persons.–(1) Subject to section 51, the Board shall prescribe rules for initiating criminal proceedings against any authority mentioned in sections 30 to 30DDD, including any officer or official subordinate to the aforesaid authority, who wilfully and deliberately commits or omits an act which results in undue benefit or advantage to the authority or the officer or official or to any other person.

(2) Where proceedings under sub-section (1) have been initiated against the authority or officer or official, the Board shall simultaneously intimate the relevant Government agency to initiate criminal proceedings against the person referred to in sub-section (1).

(3) The proceedings under this section shall be without prejudice to any other liability that the authority or officer or official or the person may incur under any other law for the time being in force.

READ MORE: Penalty for denying information sharing

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Section 56AB of Sales Tax Act, 1990 has revealed that a person is denying for sharing the information is liable to pay penalty.

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The Sales Tax Act, 1990 has prescribed penalty for persons, being owner of the goods, which are brought to Pakistan in violation of section 40 of the Act.

The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

Following is the text of section 33(27) of the Sales Tax Act, 1990:

33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –

27. Any person, being owner of the goods, which are brought to Pakistan in violation of section 40D.

Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of tax involved, whichever is higher:

Further, such goods shall also be liable to confiscation. However, the adjudication authority, after such confiscation, may allow redemption of such goods on payment of fine which shall not be less than twenty percent of value, or retail price in case of items falling in Third Schedule, of such goods.

READ MORE: Penalty on failure to print retail price

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The Federal Board of Revenue (FBR) has prescribed penalty for manufacturers and importers on failure to require mandatory printing of retail price on goods as envisaged under sub-section (27) of section 2 and clause (a) of sub-section (2) of section 3 of the Sales Tax Act, 1990.

The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

Following is the text of section 33(26) of the Sales Tax Act, 1990:

33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –

26. Any person, being a manufacturer or importer of an item which is subject to tax on the basis of retail price, who fails to print the retail price in the manner as stipulated under the Act.

Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of tax involved, whichever is higher:

Further, such goods shall also be liable to confiscation. However, the adjudication authority, after such confiscation, may allow redemption of such goods on payment of fine which shall not be less than twenty percent of the total retail price of such goods.

READ MORE: Imprisonment for retailers on tax integration failure

(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

The Sales Tax Act, 1990 has prescribed penalty and imprisonment for retailers and manufacturers on failure to comply with the mandatory requirement of integration with the online system of the Federal Board of Revenue (FBR).

The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

Following is the text of section 33(24 and 25) of the Sales Tax Act, 1990:

33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –

24. Any person, who is integrated for monitoring, tracking, reporting or recording of sales, production and similar business transactions with the Board or its computerized system, conducts such transactions in a manner so as to avoid monitoring, tracking, reporting or recording of such transactions, or issues an invoice which does not carry the prescribed invoice number or barcode or bears duplicate invoice number or counterfeit barcode, or any person who abets commissioning of such offence.

Such person shall pay a penalty of five hundred thousand rupees or two hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable, upon conviction by a Special Judge, to simple imprisonment for a term which may extend to two years, or with additional fine which may extend to two million rupees, or with both.

Any person who abets commissioning of such offence, shall be liable, upon conviction by a Special Judge, to simple imprisonment for a term which may extend to one year, or with additional fine which may extend to two hundred thousand rupees, or with both.

25. Any person, who is required to integrate his business for monitoring, tracking, reporting or recording of sales, production and similar business transactions with the Board or its computerized system, fails to get himself registered under the Act, and if registered, fails to integrate in the manner as required under the law.

Such person shall be liable to pay a penalty up to one million rupees, and if continues to commit the same offence after a period of two months after the imposition of penalty as aforesaid, his business premises shall be sealed till such time he integrates his business in the manner as stipulated under sub-section (9A) of section 3 or section 40C, as the case may be.

READ MORE: Penalty for selling cigarettes with counterfeit tax stamps

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The Sales Tax Act, 1990 has prescribed penalty and imprisonment for manufacturing, possessing, transporting, distributing, storing or selling cigarettes with counterfeited tax stamps.

The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

Following is the text of section 33(23) of the Sales Tax Act, 1990:

33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –

23. Any person who manufactures, possesses, transports, distributes, stores or sells cigarette packs with counterfeited tax stamps, banderoles, stickers, labels or barcodes or without tax stamps, banderoles, stickers, labels or barcodes

(i) Such cigarette stock shall be liable to outright confiscation and destruction. Any person committing the offence shall pay a penalty of twenty-five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable, upon conviction by a Special Judge, to simple imprisonment for a term which may extend to three years, or with additional fine which may extend to an amount equal to the loss of tax involved, or with both.

(ii) In case of transport of cigarettes with counterfeited tax stamps, banderoles, stickers, labels or barcodes, or without tax stamps, banderoles, stickers, labels or barcodes, permanent seizure of the vehicle used for transportation of non-conforming or counterfeit cigarette packs; and

(iii) In case of repeat sale of cigarettes without or with counterfeited, tax stamps, banderoles, stickers, labels or barcodes, the premises used for such sale be sealed for a period not exceeding fifteen days.

READ MORE: Imprisonment for unauthorized access to tax system

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Any person who knowingly and without lawful authority gains access to or attempts to gain access to the computerized system shall be liable for imprisonment as stated in Sales Tax Act, 1990.

The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

Following is the text of section 33(22) of the Sales Tax Act, 1990:

33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –

22. Any person who,-

(a) knowingly and without lawful authority gains access to or attempts to gain access to the computerized system; or

(b) unauthorizedly uses or discloses or publishes or otherwise disseminates information obtained from the computerized system; or

(c) falsifies any record or information stored in the computerized system; or

(d) knowingly or dishonestly damages or impairs the computerized system; or

(e) knowingly or dishonestly damages or impairs any duplicate tape or disc or other medium on which any information obtained from the computerized system is kept or stored; or

(f) unauthorizedly uses unique user identifier of any other registered user to authenticate a transmission of information to the computerized system; or

(g) fails to comply with or contravenes any of the conditions prescribed for security of unique user identifier.

Such person shall pay a penalty of twenty-five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable, upon conviction by the Special Judge, to imprisonment for a term which may extend to one year, or with fine

which may extend to an amount equal to the loss of tax involved, or with both.

READ MORE: Penalties under Section 33 (15-21) of Sales Tax Act

 (Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

Various penalties have been prescribed under Section 33 (15, 16, 17, 18, 19, 21) of Sales Tax Act, 1990, issued by the Federal Board of Revenue (FBR).

The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

Following is the text of section 33(15, 16, 17, 18, 19, 21) of the Sales Tax Act, 1990:

33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –

15. Any person who obstructs the authorized officer in the performance of his official duties. (Section 31 & General)

Such person shall pay a penalty of twenty-five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher.

16. Any person who fails to make payment in the manner prescribed under section 73 of this Act. (Section 73)

Such person shall pay a penalty of five thousand rupees or three per cent of the amount of tax involved, whichever is higher.

17. Any person who fails to fulfil any of the conditions, limitations or restrictions prescribed in a Notification issued under any of the provisions of this Act. (Section 71 & General)

Such person shall pay a penalty of five thousand rupees or three per cent of the amount of tax involved, whichever is higher.

18. Where any officer of Inland Revenue authorized to act under this Act, acts or omits or attempts to act or omit in a manner causing loss to the sales tax revenue or otherwise abets or connives in any such act.

Such officer of Inland Revenue shall be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to amount equal to the amount of tax involved, or with both.

19. Any person who contravenes any of the provision of this Act or the rules made thereunder for which no penalty has, specifically, been provided in this section.

Such person shall pay a penalty of five thousand rupees or three per cent of the amount of tax involved, whichever is higher.

21. Where any person repeats an offence for which a penalty is provided under this Act  Such person shall pay twice the amount of penalty provided under the Act for the said offence.

(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

READ MORE: Penalty for violating embargo placed on goods removal

A person shall pay a penalty of Rs25,000 or 10 per cent of the amount of tax for violating any embargo placed on the removal of goods in connection with the recovery of tax under Section 48 of the Sales Tax Act, 1990.

The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

Following is the text of section 33(14) of the Sales Tax Act, 1990:

33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –

14. Where any person violates any embargo placed on the removal of goods in connection with the recovery of tax.

Such person shall pay a penalty of twenty-five thousand rupees or ten per cent of the amount of the tax involved, whichever is higher. He shall further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to one year, or with a fine which may extend to an amount equal to the amount of tax involved, or with both.

 (Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

Imprisonment of five years for fraud under sales tax