Islamabad, February 1, 2024 – In a groundbreaking move towards enhancing efficiency and reducing compliance costs, the Federal Board of Revenue (FBR) has officially launched a single sales tax return for the telecom sector, encompassing entities registered with both federal and provincial tax authorities.
(more…)Tag: sales tax return
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Committee Formed for Single Sales Tax Return Filing in Pakistan
Karachi, December 21, 2023 – A significant step towards tax reforms has been taken in Pakistan as a committee has been set up for the implementation of a Single Sales Tax Return through a unified portal.
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FBR Establishes Committee to Implement Single Portal for Sales Tax Return Filing
Islamabad, October 20, 2023 – The Federal Board of Revenue (FBR) took a significant step on Friday by constituting a dedicated committee tasked with the design, development, and implementation of a single portal for the filing of sales tax returns across various jurisdictions.
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FBR extends sales tax return filing date to July 20, 2022
ISLAMABAD: The Federal Board of Revenue (FBR) on Friday extended the date for filing sales tax return for the month of June 2022 up to July 20, 2022.
The FBR in an official note extended the date of payment and submission of sales tax and federal excise return for the tax period of June 2022, for all taxpayers, up to July 20, 2022.
READ MORE: KTBA seeks date extension for filing statement, tax returns
Earlier, the Karachi Tax Bar Association (KTBA) on July 14, 2022 urged the FBR to extend the date for filing sales tax return and quarterly statement of income tax withholding up to July 31, 2022.
KTBA President Syed Rehan Hasan Jafri in a letter sent to FBR Chairman Asim Ahmad requested to extend the date of filing quarterly income tax withholding statement and monthly sales tax return for June 2022 up to July 31, 2022.
READ MORE: KTBA recommends separate tax fraud proceedings
The KTBA informed the FBR chairman that as business of the whole country was closed due to the Eid holidays from July 08, 2022 to July 12, 2022 whereas the last date for filing the Quarterly Statements under the Income Tax Ordinance, 2001, and Monthly Sales Tax Return under the Sales Tax Act for the Tax Period of June 2022 is due on the 20th July, 2022 and the 15th July, 2022 and the 18th July, 2022 respectively.
READ MORE: FBR urged to remove irritants in sales tax refund
Due to the holidays, few working days are left to feed and put all the data entries in the Quarterly Statement and Monthly Sales Tax Return which may kindly be extended looked into for the sake of facilitation on the genuine taxpayers of the country who are working on behalf of the FBR as withholding agents and contributing a huge amount into the exchequer without any compensation as their legal obligation.
READ MORE: Unified sales tax law for all tax authorities sought
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FBR detects fraudulent declaration of goods in ST returns
ISLAMABAD: The Federal Board of Revenue (FBR) has detected that traders in supply chain fraudulently declaring goods in sales tax returns.
The FBR issued Sales Tax General Order (STGO) No. 13 of 2022 dated April 07, 2022 regarding purchases and supplies made by importers, wholesalers, dealers and distributors in sales tax return.
The Sales Tax Act, 1990 mandates a taxpayer registered with the FBR to correctly declaration of purchases and supplies in the monthly sales tax return as filed under section 26 of the Sales Tax Act, 1990.
READ MORE: Adjustment restrictions hamper return filing by retailers
This essentially being a self-assessment based system warrants high standards of responsibility and integrity on part of the GST filers.
“However, the analysis of the data available in the system has led to conclude that the facilities/benefits provided through automated sales tax return are being misused by the importers, wholesalers, distributors who are engaged in business of buying and selling of same state of goods but are fraudulently declaring sales of goods irrespective of their business purchases in violation of provisions of law,” the FBR said.
READ MORE: FBR announces winners of third POS invoice draw
In order to ensure certainty, transparency across-the-board, it has been decided that sales of goods by importers wholesalers, Dealers and Distributors under HS Code as declared in Annex-C of the sales tax return shall be allowed on the basis of goods under the said HS Code as declared in Annex-A and Annex-B of sales tax return by these taxpayers.
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Adjustment restrictions hamper return filing by retailers
Retailers falling under Tier-1 have informed the Federal Board of Revenue (FBR) that they were unable to file monthly sales tax returns due to denial of adjustment by IRIS portal.
A number of retailers jointly sent a letter to FBR chairman apprising about unfavorable behavior of IRIS Portal by denying adjustment against credit notes issued by Tier-1 retailers.
READ MORE: FBR announces winners of third POS invoice draw
The retailers drew attention of the FBR chairman towards Section 9 of the Sales Tax Act, 1990 read with Rule 20 of the Sales Tax Rules, 2006, tax invoice issued by a registered person can be amended/modified/cancelled through issuance of credit note as a result of cancellation of supply of return of goods or a change in the nature of supply or change in the value of the supply.
They highlighted that sales made by Tier-1 retailers, as defined in clause 43A of Section 2 of the Sales Tax Act, 1990, to the end consumers are integrated with the FBR computerized system for real time reporting of sales in line with the Rules.
READ MORE: FBR identifies 1,421 retailers for tax integration
The FBR chairman has been informed that in case of sales return, credit note (sales return invoice) is issued by Tier-1 retailers in accordance with the relevant provisions of the Sales Tax Act, 1990. “IRIS portal of the FBR is also accepting this position and accepting credit notes issued by Tier-1 retailers, however, surprisingly, sales tax adjustment, relating to credit notes, which have been allowed in one month are being added back in sales tax liability of the next month in the IRIS based sales tax return.”
The retailers said: “… this practice of the sales tax return portal is strictly against the law.”
READ MORE: FBR makes rules for sealing retail outlets
They said that if such illegal restrictions are imposed on Tier-1 retailers, who have invested huge amounts in hardware as well as software for integration of sales tax reporting with the FBR, how would it be possible for the FBR to attract other retailers to get themselves registered with the FBR. “Instead of appreciating the efforts of Tier-1 retailers, they are being denied their legal and legitimate right of sales tax adjustment on credit notes.”
Due to serious flaw in the online sales tax return filing portal, a majority of Tier-1 retailers are still unable to file sales tax return for the month of January 2022 onward.
The FBR chairman has been urged to direct concerned authorities to resolve the issue at the earliest to enable Tier-1 retailers to submit their sales tax return.
READ MORE: POS invoice verification for prize scheme surges by 63%
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FBR says not to extend sales tax return filing date
ISLAMABAD: The Federal Board of Revenue (FBR) on Friday said that it will not extend the date for filing sales tax return further as filing through national platform is working seamless.
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FBR extends date for sales tax return filing up to February 25
The Federal Board of Revenue (FBR) has officially extended the deadline for filing monthly sales tax returns up to February 25, 2022. The extension applies specifically to the tax period of January 2022.
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PTBA demands date extension for filing sales tax return
ISLAMABAD: Pakistan Tax Bar Association (PTBA) on Tuesday demanded the tax authorities to extend the last date for filing sales tax return for the month of December 2021 because taxpayers have failed to make compliance due to technical issues on the IRIS portal.
The PTBA in a letter to the chairman of Federal Board of Revenue (FBR) informed about the glitches in filing the sales tax return or National Sales Tax Return and urged to extend the date for filing the monthly return for the period December 2021 up to February 15, 2022.
READ MORE: FBR further extends date for filing sales tax return
The actual cutoff date for filing sales tax return for December 2021 was January 18, 2021. However, due to problems on the national tax portal, the FBR extended the date twice; first extended up to January 24, 2022 and later it was further extended up to January 28, 2022.
Rana Munir Hussain, President, PTBA in its letter to the FBR chairman appreciated the initiative of single sales tax return for all federal and provincial taxpayers. However, at the same time he pointed out some challenges pertaining to IRIS system, which are still creating difficulty/issues due to the newly introduced IRIS module.
The PTBA received many request from its affiliated tax bars to take up the matter with FBR for extension in time for filing of Sales Tax Return for the Tax Period December-2021. All these written as well as verbal requests are revolving around the IRIS module technical issues, slow response of the system, errors and glitches on the part of FBR being faced by the taxpayers as well as professional/legal fraternity while filing Sales Tax Return through IRIS, without removing the pointed out inter alia, filing of correct sales tax returns is not possible, with the request to take up this matter on priority basis and matter in detail, is being discussed hereunder:
Name of Person is appearing instead of business name, whereas a business is registered instead of person under the sales tax law, which is creating hardship to identify the person/business entity.
Exclusion from 8B is not available where 80% sales of goods have been made under 3rd Schedule of the Sales Tax Act, 1990.
Withholding Sales Tax (WHST) credit is not available.
Revised return Tab is not available.
Sales Tax Rate for vehicle below 1000CC @ 12.5% is not available.
Registration Number editing facility is not available, which leads to deletion and re-entry of data/invoice.
Sales tax return filed by the individual taxpayer, where entries have been made through NTN, input credit to buyer is not available, which is causing hardship to file the return.
Sales or purchase invoices are not in chronological order (invoice number & date), which is difficult task to verify/re-check/reconcile the shuffled data/invoices.
Figures are shown in decimal numbers, which creates confusion at the time of calculating liability or verify the data/invoices.
Annexure-F is calculating double VAT (value Addition charged at import stage to commercial importer) or giving double credit of VAT, which will result into loss to National Exchequer.
No effect of debit or credit note is allowing the IRIS system (sales return shall be reported in Annexure-C (reduction in sales/sales tax payable), whereas purchase return shall be reported in Annexure-A (reduction in purchase/input tax credit).
Printing of return on three pages instead of one page (without annexures), a sheer wastage of national resources and loss of foreign exchange due to use of imported paper.
Printing of return without annexures is useless.
In the light of the aforesaid facts and legal exposition, the date of filing of Sales Tax Return for the Tax Period December-2021, the PTBA said, and demanded to extend the date up to 15th day of February 2022.
READ MORE: KTBA highlights anomalies in single sales tax return
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FBR further extends date for filing sales tax return
ISLAMABAD: Federal Board of Revenue (FBR) on Monday further extended the last date for filing sales tax and federal excise return for the month of December 2021 up to January 28, 2022.
The FBR issued an office order to further extend the date of payment and filing of sales tax and federal excise return for the tax period of December 2021. Previously, the FBR issued an office order on January 17, 2022 to extend the date.
The taxpayers are required to file their sales tax returns for the month of December 2021 through the Single Sales Tax Portal.
READ MORE: FBR launches sales tax return filing through single portal
The FBR on December 27, 2021 issued a notification under which it directed the taxpayers to file their sales tax returns for month of December 2021 through Single Sales Tax Portal.
The payment of sales tax and federal excise duty, which was due on January 15, 2022 had been extended up to January 21, 2022. The FBR further extended the date for payment up to January 25, 2022.
READ MORE: Power of the Board and Commissioner to call for records
Similarly, the last date for filing sales tax and federal excise return for the month of December 2021 was due on January 18, 2022, which was extended up to January 24, 2022. The FBR further extended the date for filing the return for the month of December 2022 up to January 28, 2022.
The single portal for sales tax returns has been launched to facilitate taxpayers, promote ease of doing business and reduce compliance cost.
The FBR said that through this portal, sales tax registered persons shall be able to file a single sales tax return instead of having to file separate returns to the FBR and each of the different provincial sales tax authorities.