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Tag: sales tax registration

  • FBR starts mandatory registration of brand names

    FBR starts mandatory registration of brand names

    ISLAMABAD: The Federal Board of Revenue (FBR) has started registration of brand names, which is mandatory for manufacturers to sell their products.

    The FBR on Tuesday issued Sales Tax General Order (STGO) No. 07 of 2021 for licensing of brand name under Section 40E of Sales Tax Act, 1990 for specified sectors.

    According to the STGO made available to PKRevenue.com the FBR issued procedure for licensing of brand name for specified sectors including tobacco products, beverages, sugar, fertilizer, cement and petroleum products.

    The revenue body said that all existing and new manufacturers of specified sectors are required to register their brand of each product with the FBR before selling the same in the market.

    Every manufacturer will have to submit an application to the Project Director (Track & Trace System), FBR, along with the supportive documents. The application shall include all the details and operations regarding their business / activity.

    The FBR said that each application for brand registration shall contain all the requisite information about the applicant. The information should contain manufacturer’s full name, trade name, STRN, NTN, date and place of incorporation, name of its lead directors and any other information to allow identification to take place.

    In case of any discrepancy found in application, project director shall issue a letter to the manufacturer about the missing/incomplete details. The manufacturer will have to respond to the letter within a week to avoid cancellation of its application.

    During the application process, if any information/document is found to be incorrect/fake, the registration process may be suspended immediately and manufacturer shall be issued a show cause notice to stop all the activities related to the manufacturing and sale of the rejected/not approved brand.

    The FBR further said that no manufacturer shall be allowed to sell their products in the market without having their brand registered with the FBR. However, they may be allowed to sell the product from the date of application’s submission.

    “If any unregistered brand’s product is found in the market, the IREN shall have the authority to confiscate all of the available stock in the market,” it added.

  • Three years imprisonment for sales tax registration failure

    Three years imprisonment for sales tax registration failure

    ISLAMABAD: A person who makes taxable supplies but fails to get sales tax registration shall be liable to pay fine and penalties besides the person is also liable to imprisonment up to three years.

    Sources in the Federal Board of Revenue (FBR) said that the tax offices had launched operations to identify persons making taxable supplies but are not in the sales tax net.

    The sources said that under Sales Tax Act, 1990, any person who is required to apply for registration under the Act fails to make an application for registration before making taxable supplies:

    “Such person shall pay a penalty of Rs10,000 or five percent of the amount of tax involved, whichever is higher;

    “Provided that such person who is required to get himself registered under this Act, fails to get registered within sixty days of the commencement of taxable activity, he shall, further 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 an amount equal to amount of tax involved, or with both.”

    Section 14 of the Sales Tax Act, 1990 requires a person to get registration under this Act, who is making taxable services.

    Following is the tax of the Section 14:

    Section 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 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.

  • SRB suspends sales tax registration of seven taxpayers

    SRB suspends sales tax registration of seven taxpayers

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of seven taxpayers who failed to comply with filing of returns for four consecutive tax periods.

    The SRB in a letter sent to Pakistan Automation Revenue (Pvt) Limited (PRAL) informed that the seven taxpayers had been suspended with immediate effect.

    The SRB said that under Section 25(1)(a)(ii) of the Sindh Sales Tax on Services Act, 2011 provides that registration of a registered person can be suspended where registered person ‘has failed to comply with its obligation under the Act.’

    Further, Rule 10 of the Sindh Sales Tax on Services Rules, 2011 also provides that where a registered person commits any act of fraud or deliberate and intentional non-payment, short payment or evasion of tax or non-filing of returns for four consecutive tax periods, the SRB or an officer of SRB authorized by the board in this behalf may suspend the registration of such person.

    The SRB said that during scrutiny of tax profiles of the taxpayers, that SRB’s registered persons had failed to file their Sindh sales tax monthly returns for the last four consecutive tax periods i.e. May 2020 to July 2020.

    This behavior of non-filing is in violation of the provincial tax laws.

  • List of persons required to get sales tax registration

    List of persons required to get sales tax registration

    KARACHI: Federal Board of Revenue (FBR) has issued list of persons who are mandatorily required to get sales tax registration under Sales Tax Act, 1990.

    Following is the list of persons required to get sales tax registration:

    a. All importers

    b. All wholesalers (including dealers) and distributors

    c. Manufacturers not falling in cottage industry. {Cottage industry means a manufacturer whose annual turnover from taxable supplies made in any tax period during the last twelve months ending any tax period does not exceed [ten] million rupees or whose annual utility (electricity, gas and telephone) bills during the last twelve months ending any tax period do not exceed [eight] hundred thousand rupees;}

    d. Retailers (Tier-1 retailers means:

    a. A retailer operating as a unit of a national or international chain of stores;

    b. A retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks;

    c. A retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rupees six hundred thousand; and

    d. A wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers;)

    e. A person required under any Provincial or Federal Law to be registered for purpose of any duty or tax collected or paid as if it were a levy of sales tax, e.g. service providers like hotels, clubs, caterers, customs agents, ship chandlers, stevedores, courier services etc.

    f. Persons making zero-rated supplies, including commercial exporter who intends to obtain sales tax refund against his zero rated supplies.

    g. A person who is required to be registered by virtue of aforesaid criteria, but still avoids registration, can be compulsorily registered by the department, after proper enquiry, under sub- rule 1 of Rule 6 of Sales Tax Rules, 2006.

  • SRB suspends sales tax registration of Turnotech for defaulting tax payment

    SRB suspends sales tax registration of Turnotech for defaulting tax payment

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Turnotech (Pvt) Limited defaulting tax payment and non-compliance of filing monthly returns.

    In a notice the SRB said that M/s. Turnotech (Pvt) Limited had failed to comply with the following obligations:

    — To discharge the Sindh sales tax liability against the services provided or rendered during the tax periods from March 2015 to July 2015, September 2015 to December 2015 and April 2016 to July 2018.

    — e-file their Sindh sales tax return for the tax periods from March 2015 to July 2015, September 2015 to December 2015 and April 2016 to July 2017.

    The SRB said that the suspension of the company would be revoked on taking following measures:

    — to discharge the due Sindh Sales Tax liability along with default surcharge for the tax periods from March 2015 to July 2015, September 2015 to December 2015 and April 2016 to July 2017.

    — to e-file the true and correct monthly Sindh sales tax returns for the tax periods from March 2015 to July 2015, September 2015 to December 2015 and April 2016 to July 2017, accordingly.

    The SRB said that the compliance date for remedial actions had been fixed on June 23, 2020. In case of non-satisfactory response or failure to take remedial measures the case would be proceeded for cancellation from the provincial tax authority.

  • SRB suspends sales tax registration of shipping company

    SRB suspends sales tax registration of shipping company

    KARACHI: The Sindh Revenue Board (SRB) has taken decisive action by suspending the sales tax registration of M/s. Adam Shipping (Private) Limited, a shipping company, due to default in payment and failure to file monthly returns.

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  • SRB suspends sales tax registration of M/s. Ability Logistics International

    SRB suspends sales tax registration of M/s. Ability Logistics International

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Ability Logistics International for failure to pay taxes and non-compliance of filing monthly returns.

    The SRB said that scrutiny of tax profile of the taxpayers showed that, it had failed to electronically file true and correct Sindh Sales Tax Return for the period October 2012 to December 2019.

    The provincial revenue authority said that the sales tax registration of the company had been suspended with immediate effect.

    The sales tax registration shall be revoked if the taxpayer takes remedial action by January 30, 2020. The remedial action should include to discharge sales tax liability along with default surcharge for the aforementioned periods and shall also deposit the same with the government of Sindh.

    Further, the logistic company is also required to electronically file true and correct monthly sales tax returns for the said tax periods.

    The provincial revenue body said that in case of non-satisfactory response or failure to take remedial measures on or before January 30, 2020, the case shall be further proceeding for cancellation of the registration with the SRB.

  • SRB suspends sales tax registration of Arabia Sea Country Club

    SRB suspends sales tax registration of Arabia Sea Country Club

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of Arabian Sea Country Club for tax fraud.

    In a notice for suspension of registration of M/s. Arabia Sea Country Club, the SRB said that the taxpayer had collected the amount of tax on services provided but did not deposit to the provincial exchequer.

    The SRB said that the taxpayer provided services to M/s. Aisha Steel Mills Limited, M/s. Master Motors, M/s. Novartis Pharma (Pakistan) Limited, M/s. Naveena Steel Mills (Pvt) Limited, M/s. Yamaha Motor Pakistan (Pvt) Limited, M/s. L’oreal Pakistan Pvt Limited amounting to Rs11,615,885 involving Sindh sales tax of Rs1,510,067 for the tax period January 2019 to October 2019.

    “It is inform you that the aforesaid act of non-payment/short payment of Sindh sales tax is covered under the ‘tax fraud’ as defined under the provision of Section 2(94) of the Act, 2011.”

    The SRB has given deadline of January 28, 2020 to the taxpayer:

    To discharge all the due Sindh sales tax liability along with default surcharge; and

    To e-file the true and correct monthly Sales Tax return for the said tax periods.

    “In case of non-satisfactory response or failure to take remedial measures as suggested above on or before January 28, 2020, the case shall be processed for cancellation of registration.”

  • SRB suspends sales tax registration of rice mill

    SRB suspends sales tax registration of rice mill

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of a rice mill for defaulting payment and non-compliance of return filing.

    The SRB through a notice suspended the registration of sales tax of M/s. Abdullah Lakhair Rice Mill for failure to deposit due amount of Sindh Sales Tax of Rs502,400.

    Besides, the rice mill also failed to file its monthly returns for the tax periods from August 2017 to December 2017 and from January 2019 to October 2019.

    The SRB asked the mill that the suspension of the registration would only be revoked if it ensures compliance by December 03, 2019.

    The SRB said that in case of non-satisfactory response to take remedial measures the case would be further proceeded for cancellation of registration with SRB.

  • SRB suspends sales tax registration of Burshane Petroleum

    SRB suspends sales tax registration of Burshane Petroleum

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Burshane Petroleum Private Limited for defaulting payments for eight months and non-compliance of return filing for the same period.

    The SRB in a notice of suspension, said that short declaration of sales and non-payment of sales tax on services is contravention of Sales Tax on Services Act, 2011.

    The board said that record of the company revealed that it had M/s. Hascol Petroleum Limited declared purchases of Rs310.95 million including sales tax of Rs40.42 million from Burshane Petroleum Pvt. Ltd during February 2019 to September 2019, and had also paid sales tax on services amount of Rs32.339 million to M/s. Burshane Petroleum Pvt Limited for onward payment to SRB.

    However, Burshane Petroleum Pvt Limited have not filed their monthly sales tax return during February 2019 to September 2019 leading to sales suppression of Rs310.95 million and short payment of sales tax of Rs32.34 million.

    The SRB said that the suspension would only be revoked if the company takes following remedial action by November 28, 2019:

    To declare all sales and discharge all Sindh sales tax dues along with default surcharge.

    To e-file the true and correct monthly Sindh sales tax return for the tax periods.

    Further, the company has been directed to submit summary list along with copies of all invoices issued during January 2019 up to September 2019, copies of sales tax returns filed with other provincial sales tax authorities and copies of withholding certificates alongwith payment proofs.

    The SRB warned that in case of non-satisfactory response for failure to take remedial measures on or before November 28, 2019, further necessary action would be taken as envisaged under the Act.