04
Jul

KARACHI: Registered retailers have been mandatorily required to issue invoices through the Fiscal Electronic Cash Register (FECR) of which the Federal Board of Revenue (FBR) will have real-time access for the scrutiny of sales and purchase data.
 
To implement the changes announced in the Federal Budget 2014-15, the FBR on Thursday issued SRO 608 (I)/2014 and said that registered retailers are required to install and operate FECRs, and to issue invoices only through the machine to their customers.
 
It also said that retailers will provide seamless and real-time access of their FECRs data to the FBR and also allow on-site physical inspection as and when authorised by the commissioner Inland Revenue having jurisdiction.
 
The FBR said that registration for a retailer is mandatory where: it is operating as a unit of a national or international chain of stores; or international chain of stores; operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks; who has a credit or debit card machine; whose cumulative electricity bill during the immediately preceding 12 consecutive months exceeds Rs600,000; and 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.
 
The FBR said that registered retailers specified will be liable to pay sales tax at normal rate and would observe all the applicable provisions of the act and rules made there under, including the requirement to file monthly sales tax returns.
 
The retailers who do not fall under the normal tax regime will pay sales tax through their electricity bills and the power supply company would collect the sales tax on behalf of the revenue body.
 
However, the commissioner of Inland Revenue has been empowered to restrict the power companies from deducting sales tax on a request received from a person not engaged in retail business.
 
The FBR said that the power companies will not adjust the sales tax collected through electricity bills and power companies are responsible to deposit full amount of the sales tax collected through bills to the treasury.
 
The persons who are paying sales tax through electricity bills would be treated as the final discharge of liability by them. Furthermore, they would not be entitled for any input tax adjustment or refund.
 
The retailers falling under the normal tax regime would be subject to audit as per the normal procedure, the FBR said, adding that the retailers operating under the final tax regime would be exempted from audit.
 
 
Source: The News, Paskistan

0 No comments

Comments are closed.