Pkrevenue.com

Tag: Tier-I

  • FBR allows input tax adjustment to retailers

    FBR allows input tax adjustment to retailers

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday allowed input adjustment of sales tax to Tier-1 retailers.

    The FBR issued SRO 344(I)/2020 to amend SRO 1190(I)/2019 dated October 02, 2019.

    The FBR allowed 95 percent input adjustment against output tax.

    The FBR through SRO 1190(I)/2019 issued fresh list of sectors to allow input adjustment by amending the Section 8B of Sales Tax Act, 1990.

    The following sectors were allowed input adjustment and refunds:

    1. Persons registered in electrical energy sector.
    2. Oil marketing companies and petroleum refineries.
    3. Fertilizers manufacturers.
    4. Persons making zero-rated supplies, including exports, provided that value of such supplies exceeds 50 percent of value of all taxable supplies in a tax period.
    5. Distributors.
    6. Gas distribution companies.
    7. Telecommunication services.
    8. Pakistan Steel, Bin Qasim, Karachi.
    9. Registered persons other than manufacturers, making supplies of items covered under the Third Schedule to the Sales tax Act, 1990, on which sales tax has been paid by the manufacturer or importer on retail price, provided that value of such supplies exceeds 80 percent of value of all taxable supplies in a tax period.
    10. Commercial importers where value of import subject to 3 percent value addition as prescribed in Twelfth Schedule to the Act exceeds 50 percent of value of all taxable purchases, including imports, in a tax period.
  • FBR allows tier-1 retailers to integrate POSs by March 30

    FBR allows tier-1 retailers to integrate POSs by March 30

    ISLAMABAD: Federal Board of Revenue (FBR) has allowed big retailers to integrate their point of sale (POS) with FBR’s online system by March 31, 2020 in order to avoid legal action.

    The FBR on Monday extended the date of online integration of Tier-1 retailers.

    The FBR said that it had condoned the time limit as provided in Sales Tax Rules, 2006 up to March 31, 2020, for online integration of tier-1 retailers’ POSs with board’s computerized system for real-time reporting of sales.

    However, this permission is subject to condition that the teir-1 retailers should furnish in writing their willingness to integrated all their POSs in terms of the rules to respective Regional Tax Offices (RTOs)/Large Taxpayers Units (LTUs) by March 15, 2020.

    Previously, the deadline was expired on December 15, 2019 which was given by the FBR to tier-1 retailers to integrate their POSs with the FBR online system.

    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.

  • FBR extends date up to Dec 15 for online integration of large retail houses

    FBR extends date up to Dec 15 for online integration of large retail houses

    ISLAMABAD: Federal Board of Revenue (FBR) has extended last date up to December 15, 2019 for large retail houses to integrate their systems for online sales reporting to the tax authorities.

    In an official memorandum circulated on Wednesday to all chief commissioners of Regional Tax Offices (RTOs) and Large Taxpayers Units (LTUs), saying that the mandatory requirement for Tier-I retailers to integrated their outlets with FBR’s computerized system for real time reporting of sales, the date has been extended up to December 15, 2019.

    According to Sales Tax Act, 1990, 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;

    (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 inarea or more.

    According to the statute, in case a Tier-1 retailer does not integrate his retail outlet in the manner as prescribed under sub-section (9A) of section 3, during a tax period or part thereof, the adjustable input tax for whole of that tax period shall be reduced by 15 percent.

    The Sales Tax Act further said that Tier-1 retailers shall pay sales tax at the rate as applicable to the goods sold under relevant provisions of this Act or a notification issued there under:

    Provided that the customers of a Tier-1 retailer shall be entitled to receive a cash back of up to five percent of the tax involved, from such date in the manner and to the extent, as may be prescribed by the Board:

    Provided further that from such date, and in such mode and manner, as prescribed by the Board, all Tier-1 retailers shall integrate their retail outlets with Board’s computerized system for real-time reporting of sales.

    The FBR notified rules separately for the integration of retailers with the system.

    150ZEA. Application.– The provisions of this Chapter shall apply to supplies of finished fabric and locally manufactured finished articles of textile and textile made-ups and leather and artificial leather, as covered in Table II in Notification No. S.R.O. 1125(I)/2011, dated the 31st December, 2011, under sub-serial (vii) of S. No. 1 and S. No. 3, as are made by the registered persons who are integrated with Board’s online system for the purpose of availing lower rate on supplies as specified in condition (xv) of the said Notification.