Sales Tax Registration and Return Filing

Sales Tax Registration and Return Filing

Services

How to Apply for Sales Tax Registration and Filing Sales Tax Return?

Sales Tax Registration in Lahore for any Business is one of the primary steps in doing business as the Federal Board of Revenue is monitoring every transaction.

Being a registered person, you can import & export goods or services rendered and able to work with any well-reputed company or Government organization in Pakistan. Without having registered in Sales Tax, you cannot participate in Tenders.

Sales Tax Registration basics

Before Filing of Sales Tax Return, this is mandatory to get yourself registered with the Federal Board of Revenue (FBR). After getting registered with FBR, you will get Sales Tax Registration Number (STRN) and User ID and Password. Through User ID and Password, the Taxpayer has Access to the e-file portal for submission of the Sales Tax Return.

Online Sales Tax Return can only be filed via e-file portal of FBR.

Mandatory Documents for Sales Tax Registration

  1. Bank Account Maintenance Certificate mentioning IBAN Number
  2. Photo of Business Premises
  3. Electricity Bill of Business Premises

The procedure of Sales Tax Registration

Using IRIS Portal select Form 14(1), when you will select this Form system will ask you about the following information;

  1. Tax Period
  2. Individual Type either Manufacturer or Non Manufacturer
  3. In the case of AOP and Company detail of Principle Officer/ Authorised Representative
  4. Bank Account Maintenance Certificate with IBAN Number
  5. Business Details which includes Business Name, Activities, Address, etc
  6. GPS-tagged Photographs of Business Premises
  7. Consumer Number of Gas and Electricity Bill Supplier along with a picture of Utility Bill
  8. Submission of Application Form 14(1)
  9. Issuance of Sales Tax Registration Number

Bio Metric Verification

After getting the registration Number, the Applicant has to visit the E-Sahulat Centre of NADRA within 30 days for biometric verification. In case of verification failure, the registered person’s name withdrawn from the Active Taxpayer list of Sales Tax.

Following is the list of NADRA e-Sahulat Centers to facilitate the registered persons for biometric verification.

Post Verification – Manufacturer

The Board may require post verification for manufacturer through field offices, or a third party authorized by the Board. In case the Application providing document is non-genuine / fake/wrong, it may request through the system, to give the short particulrs, in fifteen days. Persons who fail to deliver the same are strike off from the Active Taxpayer List of Sales Tax.

Sales Tax Registration via Iris Mobile Application

Sales Tax Registration can also apply through Iris Mobile Application, Tax ASAAN Mobile Application.

Detailed procedure and guidelines for Sales Tax Registration via Iris Mobile Application is available on Tax Asaan Mobile Application.

Change in particulars of Registration

In case there is a change require in FBR Profile or other details as stated in the registration certificate, the registered person shall notify the amendment or modification in the prescribed form to the RTO within fourteen days of such change.

Transfer of Registration

In case of a registered person shifts his business activity from one Jurisdiction to another Jurisdiction, he needs to provide a valid reason for such a change of Jurisdiction, which may file though written Application to Commissioner Inland Revenue of RTO where his Case presides.

De Registration of Sales Tax

For De registration, an Application will be submitted to Commissioner Inland Revenue, having Jurisdiction to deal with the case.

De-registration can make of the following Persons

  1. Who ceases to carry on the business, or
  2. If registered Person supplies become exempt from Sales Tax, or turnover becomes less than the minimum threshold level.

Filing Sales Tax Return in Lahore

Every person registered under the Sales Tax Act, 1990, or the Federal Excise Act, 2005, has to file a Sales Tax Return monthly.

A Sales Tax return is a type of declaration under which the taxpayer furnishes the details of transactions during a tax period and Paid its Sales Tax liability.

While preparing return form, Taxpayer declared its input tax and output tax particulars at the Sales Tax rate under which he made transactions. In case if input tax increases from output tax, then the system reflects a refund claim, and if output tax exceeds input tax, then the taxpayer has to deposit sales tax along with the sales tax return.

In case Sales Tax Return not filed within six months, then special approval of the commissioner Inland Revenue is required to submitting the same based on valid grounds.

Electronic Filing of Sales Tax Return

All Registered Persons can make through the Electronic filing portal of the Federal Board of Revenue.

Revised Sales Tax Return

A registered person can file his amended/revised Sales Tax Return after amendment within 120 days of filing its return for correction of any mistakes or wrong declaration made in particular return, subject to the approval of the Commissioner Inland Revenue.

Active Taxpayer List (ST)

The Active Taxpayer List (ST) is a central record where we can check out the status of Active Taxpayer filers of Sales Tax.

Sales Tax Refund

In case input tax paid on taxable purchases made during the tax period more than output tax on exports or zero-rated local supplies, then the extra amount of input tax will be refunded back to the registered person. The period of refund will not later than forty-five days of filing refund claim subject to conditions of the board.

Sales Tax Refund Processing through the FASTER System

Guidelines for filing Annex H have to follow to claim Sales Tax Refund through the FASTER System

Sales Tax Refund processing through the FASTER System

Sales Tax due dates

Registered Person falling to their respective principal activity or category file their sales tax return on a monthly, quarterly, or annual return basis. Under the standard procedure, a registered person required to file a monthly return as Annex- C on 10th Payment on 15th and e-file return by the 18th day of the month.

Sales Tax Records

Sales Tax Record maintained is compulsory for every registered person to continue at the business premises.

Record of Sales

The Sales Record should specify the following details of goods supplied or services rendered, ie.

  1. Description,
  2. Quantity,
  3. Value,
  4. Name and address of the customer
  5. The amount of tax charged.

Record of Purchases and Imports

All files of purchases and imports have to maintained by registered Person which indicate the following details;

  1. Description
  2. Quantity
  3. Value
  4. Name, Business address and Sales Tax registration number of the supplier
  5. Amount of tax paid on purchases

Record of Payments Receipts

All payment receipts of the amount of sales tax on purchases or supplies above Rs. 50,000 (except utility bills) should make through banking instruments indicating specified bank accounts of both the persons, i.e., sellers and purchasers.

Photocopies of all bank cheques and pay orders of Sales Tax Payments and receipts keep safe. Further bank statements are also required for compliance of section 73 of the Sales Tax Act 1990 to avoid Notice and audit complications that can arise anytime.

Other Records

  1. A registered person should also keep a record of:
  2. Zero-rated and exempted supplies during the period,
  3. Invoices, debit and credit notes, banking instruments and statements, stock inventory
  4. Salary and labor expenses, Utility charges, rent or lease agreement, Sale and Purchase agreements, etc.

Retention of records and documents

A registered person is bound by law to maintain all records and documents of Business for six years after the end of the tax period.

POS Retailers – Procedure for FBR Integration

Detailed procedure is available for Registered Persons relating Tier 1 Retail category for POS Retailer integration with FBR provided below:

  • The Sales Tax Rules, 2006 – Chapter XIV-AA Online Integration of Tier-1 Retailers
  • Technical Documentation
  • Fiscalization Solution for Retailers
  • Extension in date of Online Integration of Tier-1 Retailers
  • List of focal persons assisting in POS integration