KARACHI: The Federal Board of Revenue (FBR) has initiated action against big retailers by posting tax officials at business premises for monitoring of sales.
Corporate Tax Office (CTO) Karachi, an arm of the FBR, has posted its staff at eight outlets of a big retailer for checking sales, purchase and production of saleable goods.
The tax office posted its staff at eight outlets of Clifton Nimco Private limited under Section 40B of the Sales Tax Act, 1990.
Sources said that it was major step taken by the tax authorities to check tax evasion at retail level.
They said that the step was taken on the directives of Dr. Aftab Imam, chief commissioner inland revenue in order to assure the retail unit is making true declaration of its sales.
The tax office also enforced sales tax rules to install point of sale (POS) at the outlet, which is mandatory for big retailers.
Installing POS machine is mandatory for all retailers falling under category of Tier-1 retailers.
One of the major changes brought through the Finance Act, 2021 that all those outlets accepting debit and credit cards are required to integrate their sales with the FBR.
The sources said that the team of the tax officials would depute till gathering of require information to ascertain the sales and income of the outlet.
In a determined move to enforce compliance with the newly introduced Point of Sale (POS) integration system, a tax office of the Federal Board of Revenue (FBR) has taken stringent measures by sealing three retail shops in Karachi for failing to install POS machines.
The Federal Board of Revenue (FBR) took a decisive step on Tuesday by releasing a list comprising 6,763 retailers who have yet to integrate their point of sale (POS) systems with the tax system.
ISLAMABAD: Federal Board of Revenue (FBR) has constituted central committee and regional committees to oversee the integration of Tier-I retailers with the FBR system.
The FBR said that in pursuance of the Memorandum of Understanding (MOU) signed between the FBR and the Chainstore Association of Pakistan (CAP) on October 28, 2020, a central committee and regional committees have been constituted to oversee the process of integration of Tier-I Retailers.
The central committee would look into issues related to input tax issues, HS Code issues, customer incentivization, software problems etc.
Similarly, the Regional Committees would be responsible for identification Tier-I and Tier-II retailers in their respective areas and to liaise with the chief commissioners concerned besides resolving sectoral as well as individual issues of retailers.
Following Central and Regional Committees have been constituted comprising of FBR and CAP’s representatives:
Central Committee:
FBR Representatives:
i. Director General Retail
ii. Chief (IR- Analysis)
iii. Second Secretary Retail
CAP’s Representatives:
i. Tariq Mehboob
ii. Irfan Iqbal Sheikh
iii. Asfandyar Farrukh
iv. Mardan Ali Zaidi
v. Mohammad Shamsuddin
vi. Mustafa Bashir
vii. Raheel Meghani
viii. Sheikh Owais Mehmood
ix. Addel Rauf
x. Tanveer Niaz
xi. Ch. Asim Ghous
xii. Mohammad Imran Saleemi
Karachi Region Committee
FBR Representatives:
i. Chief Commissioner Inland Revenue, MTO Karachi
ii. Focal Person, POS integration, MTO Karachi.
CAP’s Representatives:
i. Asfandyar Farrukh
ii. Junaid Dandia
iii. Salman Saeed
iv. Raheel Meghani
v. Mustufa Bashir
vi. Rafiq Chamdia
Lahore Region Committee
FBR Representatives:
i. Chief Commissioner Inland Revenue RTO, Lahore
ii. Focal Person, POS integration, RTO Lahore
CAP’s Representatives:
i. Tariq Mehmood
ii. Wasif Butt
iii. Mohammad Imran Saleemi
iv. Mardan Ali Zaidi
v. Asim Javed
vi. Omar Saeed
Islamabad Region Committee
FBR Representatives:
i. Chief Commissioner Inland Revenue RTO, Islamabad
The term ‘Tier-1 retailer’ was introduced through Finance Act, 2017 by inserting relevant clause into Sales Tax Act, 1990.
All Tier-1 retailers are required to integrate all their Point of Sales (POSs) with computerized system of the Federal Board of Revenue (FBR).
The Sales Tax Act, 1990 (updated up to June 30, 2020 issued by the FBR), defined Tier-1 retailer as:
“Tier-1 retailer” means a retailer falling in any one or more of the following categories, namely:-
(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 twelve hundred thousand;
(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 retailer, whose shop measures one thousand square feet in area or more; and
(f) any other person or class of persons as prescribed by the Board.”
ISLAMABAD: Federal Board of Revenue (FBR) has issued updated list of Tier-1 retailers, who have integrated their Point of Sales (POS) with the online system of the tax authorities.
Only a customer of Tier-1 retailer is eligible to get cash back of five percent sales tax out of total amount of sales tax paid at the time of purchase from such retailers.
All tier-1 retailers are required to integrate all their POSs with FBR’s computerized system. ‘Tier-1 retailer’ is defined in section 2(43A) of the Sales Tax Act, 1990, to be a person who falls in any of the following categories:
(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 twelve hundred thousand;
(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”; and
(e) a retailer, whose shop measures one thousand square feet in area or more.
Following is the list of Tier-1 retailers who integrated their POS with the FBR:
001. RANA TRADING COMPANY (RTC)
002. HI GOLD INTERNATIONAL ENTERPRISES
003. IFFI ELECTRONICS
004. M/S:- TAYYAB SUPER STORE & BUILDERS
005. AFZAL ELECTRONICS
006. AL HAFEEZ ELECTRONICS
007. M/S SEASONS FOODS PRIVATE LIMITED
008. MUNAWAR ASSOCIATES
009. TEAM-A VENTURE (PRIVATE) LIMITED
010. TAFRAL NIAZI TRADERS
011. MS ZUBAIDA ASSOCIATES
012. M/S SUPER ASIA ELECTRONICS,
013. M/S 3-STAR TRADING COMPANY,
014. REWAYAT
015. SEATS
016. TAZ & CO.
017. BIZTECH INTERNATIONAL
018. RETAIL 21
019. WOW SOLUTION (PVT.) LIMITED
020. PAKISTAN ELECTRONICS.
021. AL FALAH SWEETS & BAKERS
022. HAQ’S INTERNATIONAL
023. HOUSE OF CHARIZMA
024. RETAIL CONCEPTS.
025. TILE SELECT (PRIVATE) LIMITED
026. SAVE’N SAVE (PVT) LIMITED
027. SULAFAH
028. WORLD EELCTRONICS
029. KAHF INTERNATIONAL.
030. SAVE MART I-8
031. SAUDA SULF.
032. SHAHEEN CHEMIST
033. KHADIJA ENTERPRISES
034. SPEED (PRIVATE) LIMITED
035. M/S UNITED RETAIL (SMC-PRIVATE) LIMITED
036. H KARIM BUKSH ENTERPRISES
037. M/S PENSY GARMENTS (PVT) LTD
038. M/S PUNJAB CASH AND CARRY BAHRIA TOWN PHASE 4
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued procedure for cash back five percent sales tax to customers, which is paid at the time of payment to Tier-1 retailers.
The FBR issued SRO 1339(I)/2020 dated December 16, 2020 to make amendment in Sales Tax Rules, 2006.
Following is the procedure for payment of five percent sales tax paid on purchases made by customers of Tier-1 retailers:
(1) All customers of Tier-1 retailers are entitled to redeem 5 percent of the sales tax paid as cash back on eligible goods of the tax amount as inscribed on the invoice issued by the Teir-1 retailers.
(2) To redeem under sub-rule (1) the cash online, the customer shall log on to the mobile application.
(3) Soon after log on under sub-rule (2), an independent FBR wallet account shall be created for each customer.
(4) Approved outlet shall also create an independence FBR wallet account for each customer.
(5) An identical FBR wallet account shall be created for each point of sale by the approved outlet.
(6) The customer shall verify the electronically generated invoice through the mobile application.
(7) As soon as the electronically generated invoice is verified, the system shall automatically calculate the 5 percent amount of the tax paid on the invoice.
(8) The customer shall transfer the amount determined under sub-rule (7) into his FBR wallet account.
(9) The customer may redeem the earned amount within one month of his purchases accumulated in his FBR wallet account on any approved outlet who shall refund the amount accumulated in the wallet account of the customer after ensuring that the earned amount is transferred from the customer’s wallet account to the approved outlets wallet account.
(10) The approved outlet shall adjust the amount so refunded to the customer which shall be automatically uploaded from the approved outlet’s wallet account to the sales tax return of the approved outlet for the relevant tax period by auto adjusting the output tax liability.
ISLAMABAD: Big retailers with chain stores have agreed to install Point of Sale (POS) at their outlets to integrate sales and purchase with online system of Federal Board of Revenue (FBR).
In this regard a Memorandum of Understanding (MoU) was signed between the FBR and Chain Stores Association of Pakistan (CAP) to ensure effective and efficient integration of (POS) installed at Tier 1 retailers’ location all across the country.
This huge milestone achieved on Wednesday provides for incentives to the retailers who voluntarily integrate with FBR’s system by November 30, 2020.
To facilitate smooth integration and collectively manage any bottlenecks, CAP committees will be formed at central and regional levels.
The chain store retailers assured FBR that all Tier 1 integrated retailers would fully integrate all their tills/PoS without any exception by November 30, 2020.
They also assured that all of their branches would be fully integrated by then. The association will also augment FBR’s efforts to improve the PoS system and make it foolproof.
CAP will also assist FBR in the identification of all Tier 1 and Tier 2 Retailers who are liable to be integrated and have not yet integrated.
The foundational principle of this MoU and the benefits agreed to by FBR is complete integration by Tier 1 Retailers with FBR’s system by November 30, 2020.
ISLAMABAD: Federal Board of Revenue (FBR) has made it mandatory for food outlets to display tax amount along with retail price in menus.
The FBR on Wednesday issued SRO 353(I)/2020 to make it mandatory for all the restaurants, bakeries, caterers and sweetmeat shops supplying prepared foods, foodstuff and sweetmeat to show prices and amount of tax separately on menu cards for menu board displayed in their outlets for the end consumers.
The FBR has made this requirement for tier-I retailers, who are required to integrate their point of sales with the FBR’s online system.
The FBR also made amendment through notification and made it mandatory for all the retailers to show prices and amount of tax separately on the price tags attached with finished fabric and locally manufactured finished articles of textile and textile made-ups leathers and artificial leather.
The FBR made these changes in order to ensure revenue generation from the retail sector. The FBR recently allowed input tax adjustment to Tier-1 retailers in order to attract more retailers into this segment.
