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Tag: sales tax registration

  • SRB suspends sales tax registration of four freight forwarders

    SRB suspends sales tax registration of four freight forwarders

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of four freight forwarders for defaulting payment and non-compliance of filing sales tax returns.

    The SRB issued suspension notices to the following freight forwarders:

    Muhammad Rafique (M/s. Rafique Brothers)

    M/s. Prime Ocean Cargo Management Company (Pvt) Limited

    M/s. Shahnoor Weavers

    Muhammad Tahir Imam (M/s. ST Logistics International)

    The SRB said that Muhammad Rafique (M/s. Rafique Brothers) had failed to make payment of Sindh Sales Tax on Services for the period from July 2011 till to date. Further the company also failed to file return electronically for the tax periods February 2017 to December 2018 and July 2011 to April 2013.

    The SRB asked the company that the notice would be revoked in case it takes remedial action by May 24 by making payment and filing true and correct returns for the said periods. Otherwise the case shall be proceeded for cancellation in case remedial action was not taken by May 25, 2019.

    In case of M/s. Prime Ocean Cargo Management Company (Pvt) Limited, the SRB said that the company had failed to file returns for the period July 2016, December 2015, March 2015, June 2013, March 2013, September 2012, August 2012, June 2012, May 2012, April 2012, March 2012, February 2012, January 2012, December 2011, October 2011, September 2011, August 2011, July 2011.

    The SRB directed the company to take remedial action by May 24, 2019. “In case of non-satisfactory response or failure to take remedial measures as suggested above on or before May 25, 2019 the case shall be further preceded for cancellation of registration wit the SRB.”

    In the case of M/s. Shahnoor Weaver, the SRB said that the company had failed to make payment since July 2011 till date. Further, the company had failed to e-filer sales tax returns for tax periods from July 2011 to June 2015 and from August 15 to December 2018.

    The SRB directed the company to take remedial action by May 26, 2019. “In case of non-satisfactory response or failure to take remedial measures as suggested on or before May 27, 2019, the case shall be further preceded for cancellation of registration with the SRB.”

    In the fourth case of Muahmmad Thair Imam (M/s. ST Logistics International), the SRB said that the company had failed to make payment of sales tax on services from July 2011 till date. Further, the company also failed to e-filer sales tax returns for the said period.

    The SRB has directed the company to take remedial action by May 23, 2019. “In case o non-satisfactory response or failure to take remedial measures as suggested on or before May 24, 2019 the case shall be further preceded for cancellation of registration wit SRB,” it added.

  • SRB suspends sales tax registration of M/s. Hellenic Shipping Agencies

    SRB suspends sales tax registration of M/s. Hellenic Shipping Agencies

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Hellenic Shipping Agencies (Pvt) Limited for non-payment and non-compliance of return filing for the last eight years.

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  • FBR provisionally revokes sales tax registration suspension of Hascol Petroleum

    FBR provisionally revokes sales tax registration suspension of Hascol Petroleum

    KARACHI: Federal Board of Revenue (FBR) has provisionally revoked the suspension of sales tax registration of M/s. Hascol Petroleum Limited on directives issued by Sindh High Court.

    A communication sent to Pakistan Stock Exchange (PSX) said that the company had filed a constitution petition before the Sindh High Court against the FBR challenging the order issued by Large Taxpayers Unit (LTU) Karachi for suspension of sales tax registration of the company.

    “Upon directors of the Sindh High Court, the commissioner Inland Revenue, FBR has by order May 03, 2019 provisionally revoked the suspension of the sales tax registration of the company with immediate effect,” the company said, adding that consequently the sales tax registration of the company is operative and effective as of date.

  • FBR identifies retailers taking undue benefits of present registration requirement

    FBR identifies retailers taking undue benefits of present registration requirement

    KARACHI: Federal Board of Revenue (FBR) has identified that large number of retailers are suppressing electricity consumption to avoid mandatory registration.

    A tax unit in Karachi in its budget proposals for fiscal year 2019/2020, asked the FBR Headquarters to review the present regime of sales tax registration for retailers as they were taking undue advantage.

    The tax unit said that presently retailers are dealt for registration under Sales Tax Special Procedure 2007, Chapter–II, Rule 4 & 6, a retailer operating as a unit of a national or international chain of stores and other retailers paying sales tax through electricity bills.

    Before this, retailers were dealt for registration under Sales Tax Rule 2006, Chapter –I, Rule 4 (b) which is reproduced as under (omitted by SRO 494(I) 2015 dated 30-06-2015).

    “A retailer whose value of supplies, in any period during the last twelve months exceeds five million rupees”.

    At present retailers are taking benefits of this change and having turnover more than ten million are not liable to register and paying a meager amount in electric bills.

    Retailers used generators, solar energy and other sources and maintain the level of electric bills not exceeding the amount of Rs 600000/- for last twelve months and through payment of 5 percent on less than Rs20,000 electricity bill and 7.5 percent on monthly bill greater than Rs.20,000.

    The FBR has been urged that retailers having turnover more than ten million needs to be included in Rule 4 of Sales Tax Special Procedure 2007, Chapter –II, to enhance the net work of Sales Tax registration.

  • Sales Tax Act 1990: persons required to get registration

    Sales Tax Act 1990: persons required to get registration

    KARACHI: All the persons engaged in making taxable supplies are required to get sales tax registration.

    According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 14 of the Act, explained the requirement of registration.

    Section 14: Registration

    Sub-Section (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.

    Sub-Section (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.

    Sub-Section (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 registration of IT firm for unrealistic input tax adjustment

    SRB suspends registration of IT firm for unrealistic input tax adjustment

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of an information technology (IT) firm for unrealistic adjustment of input tax adjustment.

    According to a notice, the SRB suspended sales tax registration of M/s. Cube XS Weatherly (Pvt) Limited. The SRB said that the taxpayer had filed nil return for the tax periods from October 2013 to January 2019 and claimed / adjusted heavy amount of input tax wherein the input-to-output tax ratio is as much as 2,573 percent, which is neither economically possible nor is allowed under provision of Sindh Sales Tax Act, 2011.

    The SRB further said that the taxpayer had adjusted/claimed full amount of input tax without apportioning the same which was tantamount to tax fraud and was also contravention under provincial tax laws.

    The taxpayers had been asked in hearing on February 14, 2019 to furnish the copies of audited financial statements along with bifurcation of revenues/sales but registered person failed to do so.

    “The registered person has neither deposited the Sindh sales tax nor e-filed the returns for the tax period of February 2019,” the SRB said.

    The SRB directed the taxpayer to take remedial actions by April 25, 2019 to revoke the suspension.

    In case of non-satisfactory response or failure to take remedial measures on or before April 25, 2019 the case would be further proceeded for cancellation of the taxpayer’s registration with SRB, the notice said.

  • SRB suspends sales tax registration of two goods transport companies

    SRB suspends sales tax registration of two goods transport companies

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of two goods transport companies for defaulting payment and non-compliance of monthly returns, officials said on Friday.

    The SRB suspended sales tax registration of M/s. Sheikh Zahoor Goods and M/s. New Darwesh Goods Transport for violating provincial tax laws.

    The SRB suspended registration of Sheikh Zahoor Goods for filing to file monthly Sindh Sales Tax returns for the consecutive seven tax periods from August 2018 to February 2019, despite issuance of notices on January 04, 2019, January 25, 2019 and March 13, 2019.

    Furthermore, it is observed that the company had received revenue consideration of Rs72.05 million during the tax period from January 2018 to February 2019 but the taxpayer declared the sales of Rs16.89 million during the tax periods leading to short declaration of sales Rs55.15 million.

    The SRB directed the company to take remedial action by April 04, 2019 for paying dues along with surcharges and e-file true and correct monthly sales tax returns.

    In the case of New Darwesh Goods Transport Company, the SRB said that the taxpayer had failed to declare any sales during the tax period from March 2018 to February 2019, despite the fact that it had received consideration of Rs13.66 million during January 2018 up to December 2018, which revealed short declaration of sales by it.

    The SRB had directed the company to submit a copy of income tax return of tax year 2017/2018 along with summary list of invoices in order to ascertain their Sindh sales tax dues, but it failed to make compliance.

    The SRB asked the company to take remedial action by April 04, 2019 of paying outstanding dues along with default surcharge and e-file true and correct monthly sales tax returns.

    The provincial revenue authority warned both the companies that if they failed to take remedial actions then the SRB would take necessary action under the law.

  • SRB suspends registration of ZY & Co. Bulk Terminals

    SRB suspends registration of ZY & Co. Bulk Terminals

    KARACHI: Sindh Revenue Board (SRB) has suspended the sales tax registration of M/s. Z.Y. & Co. Bulk Terminals (Private) Limited for defaulting payment and e-filing of monthly sales tax returns.

    The SRB said that the scrutiny of tax profile revealed that the company failed:

    — To make payment of Sindh sales tax on services pertaining to the tax period from December 2018 to February 2019.

    — to e-file the Sindh sales tax return in the time limitation and the manner for the aforesaid period.

    The SRB said that non-payment of SST and non-filing of SST returns within the time and manner prescribed under the law is contravention of Sindh Sales Tax Act, 2011 and the rules made thereunder.

    The SRB suspended the sales tax registration of the company with immediate effect. However, it directed the company that the suspension would be revoked if following remedial measures are taken:

    — To discharge all sales tax liability

    — To e-file the true and correct monthly Sindh sales tax returns for the said tax periods.

    In case of non-satisfactory response or failure to take remedial measures as suggested on or before April 04, 2019, the case would be further proceeded for cancellation the registration with the SRB.

  • SRB suspends registration of ZY & Co. Bulk Terminals

    SRB suspends registration of ZY & Co. Bulk Terminals

    KARACHI: Sindh Revenue Board (SRB) has suspended the sales tax registration of M/s. Z.Y. & Co. Bulk Terminals (Private) Limited for defaulting payment and e-filing of monthly sales tax returns.

    The SRB said that the scrutiny of tax profile revealed that the company failed:

    — To make payment of Sindh sales tax on services pertaining to the tax period from December 2018 to February 2019.

    — to e-file the Sindh sales tax return in the time limitation and the manner for the aforesaid period.

    The SRB said that non-payment of SST and non-filing of SST returns within the time and manner prescribed under the law is contravention of Sindh Sales Tax Act, 2011 and the rules made thereunder.

    The SRB suspended the sales tax registration of the company with immediate effect. However, it directed the company that the suspension would be revoked if following remedial measures are taken:

    — To discharge all sales tax liability

    — To e-file the true and correct monthly Sindh sales tax returns for the said tax periods.

    In case of non-satisfactory response or failure to take remedial measures as suggested on or before April 04, 2019, the case would be further proceeded for cancellation the registration with the SRB.

  • SRB suspends tax registration of Cyber Internet Services

    SRB suspends tax registration of Cyber Internet Services

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Cyber Internet Services (Private) Limited for making short payment on telecom services.

    The SRB on Tuesday said that the services provided or rendered in respect of telecommunication including internet and bandwidth services are chargeable to the sales tax under the provincial law.

    M/s. Cyber Internet Services (Private) Limited is registered with the SRB since August 04, 2011.

    The SRB said that as per invoices services provided to end consumers of internet services from registered person, it has been observed that the registered person is charging/collecting/depositing Sindh sales tax at lower rate of tax or inappropriate rate of tax i.e. 15.6 percent despite the fact that internet or bandwidth services are chargeable to the Sindh sales tax at 19.5 percent.

    As per the description given on one of the invoice, the registered person has billed the consumer for 10 Mbps internet services package for the month of March 2019 but has charged sales tax of Rs312 on value of taxable services of Rs1.999 (sales tax at 15.6 percent) whereas the applicable rate of tax is 19.50 percent.

    “This is serious violation of provisions of Sindh Sales Tax Act, 2011.”

    Considering the violation, the SRB suspended the sales tax registration of the company with immediate effect.

    However, the provincial revenue authority has given opportunity to the company to take remedial action by April 02, 2019 including submitting the summary of tax collected and charged lower than applicable tax rate in case of telecommunication services from July 2011 till February 2019.

    In case of non-satisfactory response or failure to take remedial measures as suggested on or before April 02, 2019, the case would be further proceeded for cancellation of registration with SRB, the board warned.

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