Tag: Sales Tax Act 1990

In a bid to streamline tax compliance and enhance transparency, the Federal Board of Revenue (FBR) has re-emphasized the statutory requirement for taxpayers to retain records for a period of six years.

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Section 23 of Sales Tax Act, 1990 has defined issuing tax invoice must for supplier.

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 23 of Sales Tax Act, 1990:

23. Tax Invoices.– (1) A registered person making a taxable supply shall issue a serially numbered tax invoice at the time of supply of goods containing the following particular, in Urdu or English language, namely: –

(a) name, address and registration number of the supplier;

(b) name, address and registration, number of the recipient and NIC or NTN of the unregistered person, as the case may be, excluding supplies made by a retailer where the transaction value inclusive of sales tax amount does not exceed rupees one hundred thousand, if sale is being made to an ordinary consumer.

Explanation. – For the purpose of this clause, ordinary consumer means a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing:

Provided that the condition of NIC or NTN shall be effective from 1st August, 2019;

(c) date of issue of invoice;

(d) description including count, denier and construction in case of textile yarn and fabric, and quantity of goods;

(e) value exclusive of tax;

(f) amount of sales tax; and

(g) value inclusive of tax:

Provided that the Board may, by notification in the official Gazette, specify such modified invoices for different persons or classes of persons;

Provided further that not more than one tax invoice shall be issued for a taxable supply:

Provided also that if it is subsequently proved that CNIC provided by the purchaser was not correct, liability of tax or penalty shall not arise against the seller, in case of sale made in good faith.

(2) No person other than a registered person or a person paying retail tax shall issue an invoice under this section.

(3) A registered person making a taxable supply may, subject to such conditions, restrictions and limitations as the Board may, by notification in the official Gazette, specify, issue invoices to another registered person electronically and to the Board as well as to the Commissioner, as may be specified.

(4) The Board may, by notification in the Official Gazette, prescribe the manner and procedure for regulating the issuance and authentication of tax invoices.

(Disclaimer: The text of 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.)

Record keeping under sales tax act

Section 22 of Sales Tax Act, 1990 has defined record keeping under 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.

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Following is the complete sections of the Sales Tax Act, 1990 updated up to June 30, 2001 after incorporating changes brought through Finance Act, 2001.

Section 2: Definitions of Sales Tax Act, 1990

Section 3: Chargeability of sales tax at 17% on supply of goods

Section 3B: Overcharging of tax to be deposited in national kitty

Section 4: Zero rated tax under sales tax law

Section 5: Applicable tax rates to be charged under sales tax law

Section 6: Sales Tax Law explains time of payment

Section 7: Determination of tax liability for supplies

Section 7A: Levy and collection of tax on goods

Section 8: Tax credit on certain supplies not allowed

Section 8A: Joint, several liability in tax default

Section 8B: Provision for input tax adjustment

Section 9: Issuance of debit, credit notes on tax adjustment

Section 10: Refund of input

Section 11: Assessment and recovery of tax not levied

Section 11A: Short paid amounts recoverable without notice

Section 11B; Assessment giving effect to an order

Section 11C: Powers of tax authorities to modify orders

Section 13: Sales Tax exemption

Section 14: Sales Tax registration for making supplies

Section 21: De-registration under Sales Tax Act

Section 21A: FBR’s power to issue sales tax Active Taxpayers List

Section 22: Record keeping under sales tax act

Section 23: Issuing tax invoice must for supplier

Section 24: Taxpayers require to retain record of past six years

Section 25: Commissioner empowered to access sales record

Section 25A: IR officer authorized to obtain sample for sales tax

Section 25AA: IR officers may determine fair price in transactions

Section 26: Filing sales tax returns mandatory for registered persons

Section 27, 28 and 29: Filing of special, final returns under Sales Tax Act

Section 30: Appointment of FBR officers for exercising sales tax law

Section 30A: Intelligence officers empowered to exercise sales tax law

Section 30B, 30C, 30D, 30DD, 30DDD: Formation of Directorates under Sales Tax Act

Section 30E: Powers and functions of directorates

Section 31 and 32: Powers, delegation of powers by Inland Revenue officials

Section 32A: FBR authorized to appoint special panels for tax audit

Section 33: Penalty for failure in filing sales tax return

Section 33(2): Penalty for non issuance of sales tax invoice

Section 33(3): Penalty for issuing unauthorized sales tax invoice

Section 33(4): Penalty for failure to notify changes in registration details

Section 33(5): Three-year jail for defaulting sales tax payment

Section 33(6): Penalty for repeated miscalculation in sales tax return

Section 33(7): Imprisonment for selling goods without tax registration

Section 33(8): Penalty for failure to maintain sales tax record

Section 33(9): Up to Rs50,000 penalty for obstructing access to records

Section 33(10): Taxpayers to pay penalty on failure to provide information

section 33(11): Three-year jail for making false statement under tax law

Section 33(12): Imprisonment of 5yrs for denying access to FBR officials

Section 33(13): Imprisonment of five years for fraud under sales tax

Section 33(14): Penalty for violating embargo placed on goods removal

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

Section 33(22): Imprisonment for unauthorized access to tax system

Section 33(23): Penalty for selling cigarettes with counterfeit tax stamps

Section 33(24-25): Imprisonment for retailers on tax integration failure

Section 33(26): Penalty on failure to print retail price

Section 33(27): Penalty for bringing goods illegally into Pakistan

Section 33(28): Penalty for denying information sharing

Section 33A: Tax officials may face criminal proceedings under ST Act

Section 34: Default surcharge for failure in timely tax payment

Section 34A: Exemption from penalty and default surcharge

Section 37: Power to order persons to give evidence and produce documents

Section 37A: Commissioner having power to arrest and prosecute

Section 37B: Procedure for IR officers on arrest of person

Section 37C: Special judges may be appointed under Sales Tax Act

Section 37D: Cognizance of offences by special judges

Section 37E: Special Judge to have exclusive jurisdiction

Section 37F: Provisions of code of Criminal Procedure 1898, to apply

Section 37G and 37H: Sales tax cases may be transferred from special court

Section 37I: Tax authorities may appeal against special court order

Section 38: Tax officials authorized to access taxpayers’ premises

Section 38A: IR officials empowered to call for record

Section 38B: Taxpayers require to produce sales records to IR office

Section 40: IR officers empowered for searches under warrant

Section 40B: Deploying IR officers at taxpayers’ premises

Section 40C: IR officers empowered electronic monitoring of taxpayers

Section 40D: Supply of goods from tax exempt areas

Section 40E: Manufacturers require to obtain brand license

Section 45A: Power of the Board and Commissioner to call for records

Section 45B: Filing appeal under Sales Tax Act

Section 46: Filing appeal before Appellate Tribunal IR

Section 47: Making reference against ATIR decision

Section 47A; How to get relief through alternative dispute resolution

Section 48: Recovery of arrears under sales tax law

Section 49: Ownership transfer or termination of taxable activity

section 49A; Commissioner’s power to notify liquidator of company

Section 50: FBR’s powers to make sales tax rules

 Section 50A: FBR may prescribe rules for using computerized system

 Section 50B: FBR may implement electronic scrutiny, intimation

Section 51: No bar or suit against order passed in good faith

 Section 52: Appearance of authorized representative

Section 52A: Persons may be appointed for filing e-return

Section 53: Recovery of tax from estate of deceased person

Section 55: FBR may issue instructions under Sales Tax Act

Section 56: Service of notices, orders under sales tax act

Section 56A: Agreement for the exchange of information

Section 56AB: Real-time access to information and databases

Section 56B: Information exchange under STA should be confidential

Section 56C: Prize scheme on invoices issued by retailers

Section 57: Rectification of mistake in order made by IR officer

Section 58: Tax liability of winding company

Section 58A: Taxpayers allowed to nominate representatives

Section 58B: Liability and obligations of representatives

Section 59: Tax paid on stocks acquired before registration

Section 60: Powers to deliver certain goods without payment of tax

Section 61: Repayment of tax in certain cases

Section 61A: Repayment of tax to registered persons

Section 62: Drawback allowable on re-export

Section 63: Drawback into use between import and re-export

Section 64: FBR may prohibit drawback in case of foreign territory

Section 65: Exemption of tax not or short levied

Section 66: Refund to be claimed within one year

Section 67: FBR to pay additional amount on delayed sales tax refund

Section 67A: Provision to pay sales tax refunds through bonds

Section 68: Liability of the registered person for the acts of his agent

Section 69: Taxpayers can obtain duplicate sales tax documents

Section 70: Computation of limitation period

Section 71: FBR may issue special procedure under sales tax law

Section 72: Obeying FBR’s orders made mandatory

Section 72A: Section 72A of Sales Tax Act

Section 72B: FBR’s computerized selection for audit

Section 72C and 72D: Reward to IR officials, whistleblowers on tax detection

Section 73: Cash transactions above Rs50,000 not admissible

Disclaimer: PkRevenue.com team has endeavored to provide the actual text of the Sales Tax Act, 1990 updated through Finance Act, 2021. However, PkRevenue.com team is not responsible for any error.

Section 21A of the Sales Tax Act, 1990 grants the Federal Board of Revenue (FBR) the authority to compile and maintain an Active Taxpayers List (ATL).

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Section 21 of Sales Tax Act, 1990 has explained de-registration, blacklisting and suspension of registration.

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 21 of Sales Tax Act, 1990:

21. De-registration, blacklisting and suspension of registration.– (1) The Board or any officer, authorized in this behalf, may subject to the rules, de-register a registered person or such class of registered persons not required to be registered under this Act.

(2) Notwithstanding anything contained in this Act, in cases where the Commissioner is satisfied that a registered person is found to have issued fake invoices or has otherwise committed tax fraud, he may blacklist such person or suspend his registration in accordance with such procedure as the Board may by notification in the official Gazette, prescribe.

(3) During the period of suspension of registration, the invoices issued by such person shall not be entertained for the purposes of sales Tax refund or input tax credit, and once such person is black listed, the refund or input tax credit claimed against the invoices issued by him, whether prior or after such black listing, shall be rejected through a self-speaking appealable order and after affording an opportunity of being heard to such person.

(4) Notwithstanding anything contained in this Act, where the Board, the concerned Commissioner or any officer authorized by the Board in this behalf has reasons to believe that a registered person is engaged in issuing fake or flying invoices, claiming fraudulent input tax or refunds, does not physically exist or conduct actual business, or is committing any other fraudulent activity, the Board, concerned Commissioner or such Officer may after recording reasons in writing, block the refunds or input tax adjustments of such person and direct the concerned Commissioner having jurisdiction for further investigation and appropriate legal action.

(Disclaimer: The text of 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.)

Sales tax registration for making supplies

Section 14 of Sales Tax Act, 1990 has explained sales tax registration for making supplies.

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 14 of Sales Tax Act, 1990:

14. Registration.— (1) Every person engaged in making taxable supplies in Pakistan, including zero-rated supplies, in the course or furtherance of any taxable activity carried on by him, falling in any of the following categories, if not already registered, is required to be registered under this Act, namely:-

(a) a manufacturer who is not running a cottage industry;

(b) a retailer who is liable to pay sales tax under the Act or rules made thereunder, excluding such retailer required to pay sales tax through his electricity bill under sub-section (9) of section 3;

(c) an importer;

(d) an exporter who intends to obtain sales tax refund against his zero-rated supplies;

(e) a wholesaler, dealer or distributor; and

(f) a person who is required, under any other Federal law or Provincial law, to be registered for the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be collected under the Act.

(2) Persons not engaged in making of taxable supplies in Pakistan, if required to be registered for making imports or exports, or under any provisions of the Act, or any other Federal law, may apply for registration.

(3) The registration under this Act shall be regulated in such manner as the Board may, by notification in the official Gazette, prescribe.

(Disclaimer: The text of 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.)

Sales tax exemption under ST Act 1990

Section 13 of Sales Tax Act, 1990 has explained exemption of sales tax.

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 13 of Sales Tax Act, 1990:

13. Exemption.– (1) Notwithstanding the provisions of section 3, supply of goods or import of goods specified in the Sixth Schedule shall, subject to such conditions as may be specified by the Federal Government, be exempt from tax under this Act.

(2) Notwithstanding the provisions of sub-section (1) –

(a) the Federal Government may, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations and implementation of bilateral and multilateral agreements, by notification in the official Gazette, exempt any supplies made or imports, of any goods or class of goods from the whole or any part of the tax chargeable under this Act, subject to the conditions and limitations specified therein;

(3) The exemption from tax chargeable under sub-section (2) may be allowed from any previous date specified in the notification issued under clause (a)  

(6) The Board shall place before the National Assembly all notifications issued under this section in a financial year.

(7) Any notification issued under sub-section (2), after 1st July, 2015 shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued:

Provided that all such notifications, except those earlier rescinded, shall be deemed to have been in force with effect from the 1st July, 2016 and shall continue to be in force till the 30th June, 2018, if not earlier rescinded:

Provided further that all notifications issued on or after the first day of July, 2016 and placed before the National Assembly as required under sub-section (6) shall continue to be in force till thirtieth day of June, 2018, if not earlier rescinded by the Federal Government or the National Assembly.

(Disclaimer: The text of 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.)

Power of tax authorities to modify orders

The Federal Board of Revenue (FBR) has delineated the powers of tax authorities to revise or modify orders under Section 11C of the Sales Tax Act, 1990, as updated up to June 30, 2021, incorporating changes introduced through the Finance Act, 2021. This section empowers tax officials to adjust assessments in light of legal decisions by higher courts or appellate bodies.

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Section 11B of Sales Tax Act, 1990 has explained assessment giving effect to an order.

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 11B of Sales Tax Act, 1990:

11B. Assessment giving effect to an order.– (1) Except where sub-section (2) applies, where, in consequence of, or to give effect to, any finding or direction in any order made under Chapter-VIII by the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court an order of assessment of tax is to be issued to any registered person, the Commissioner or an officer of Inland Revenue empowered in this behalf shall issue the order within one year from the end of the financial year in which the order of the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court, as the case may be, was served on the Commissioner or officer of Inland Revenue.

(2) Where, by an order made under Chapter-VIII by the Appellate Tribunal, High Court or Supreme Court, an order of assessment is remanded wholly or partly and the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is directed to pass a new order of assessment, the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, shall pass the new order within one year from the end of the financial year in which the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is served with the order:

Provided that limitation under this sub-section shall not apply, if an appeal or reference has been preferred against the order passed by Appellate Tribunal or a High Court.

(Disclaimer: The text of 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.)

Short paid amounts recoverable without notice