Time and manner of sales tax payment for Tax Year 2024 have been explained by the Federal Board of Revenue (FBR) through updated Sales Tax Act, 1990.
The Section 6 of the Sales Tax Act, 1990 outlined the time and manner of payment of sales tax.
The Federal Board of Revenue (FBR) has elucidated the time and manner of sales tax payment for Tax Year 2024 through an updated Sales Tax Act, 1990. The guidelines, outlined in Section 6 of the Act, provide detailed instructions regarding the payment of sales tax, ensuring transparency and compliance in the taxation process.
Section 6 of the Sales Tax Act, 1990, addresses the time and manner of payment, emphasizing the need for adherence to specified timelines and procedures. According to the Act, the tax on goods imported into Pakistan is to be charged and paid in a manner consistent with the payment of customs duties under the Customs Act, 1969.
The provisions of the Customs Act, including section 31A, relating to the collection, payment, and enforcement of tax, are applicable to the sales tax on imported goods. This ensures a seamless integration of the tax payment process, aligning it with established customs procedures.
Furthermore, Section 6(1A) highlights the incorporation of section 31-A of the Customs Act, 1969, into the Sales Tax Act, 1990. This incorporation is deemed to have always been in effect, negating any exemptions, adjustments, or refunds based on the absence of such provisions. The section explicitly nullifies any claims for exemption or adjustment grounded in decisions or judgments from any forum, authority, or court, emphasizing the non-applicability of the doctrine of promissory estoppel.
For taxable supplies made during a tax period, registered persons are required to pay the applicable tax by the prescribed date. The Board has the authority, through official notification, to direct alternative methods of charging, collecting, and paying taxes for specified supplies or taxable goods.
The Act delineates two modes of payment for the tax due on taxable supplies: depositing in a designated bank as per the Board’s specifications or through alternative methods outlined by the Board. This dual approach aims to provide flexibility and convenience for taxpayers while ensuring the security and transparency of the payment process.
Section 6(5) introduces the provision for the Federal Government to permit the payment of sales tax on an installment basis. This privilege extends to the Federal or Provincial Governments and public sector organizations for the import or supply of goods. The Federal Government may issue notifications, subject to conditions and restrictions, allowing installment-based payments from specified previous dates.
In summary, the clarification provided by the FBR on the time and manner of sales tax payment for Tax Year 2024 ensures a streamlined and accountable process. The updated guidelines aim to facilitate compliance among taxpayers while maintaining the integrity of the taxation system in Pakistan.
