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CBR asks associations to get registered with ST collectorates

SOHAIL SARFRAZ

ISLAMABAD: The Central Board of Revenue (CBR) has reminded the leading associations of manufacturers, exporters and retailers of the mandatory registration with Sales Tax, having 2.5 million and Rs five million annual turnover, respectively.

The board has also asked the Collectors of Sales Tax all over the country including Azad Kashmir to coordinate with respective associations to provide assistance and facilitate the registered persons.

The Sales Tax wing of the CBR has clarified on Monday that all the fixed sales tax schemes had been abolished and the manufacturers with annual turnover of Rs 2.5 million and the retailers having Rs 5 million turnover (except categories of business enlisted in the sixth schedule to the Sales Tax Act 1990) are liable for registration.

These manufacturers and retailers are bound to issue tax invoices and file the prescribed return in the designated branches of National Bank of Pakistan and deposit sales tax due after claiming their admissible input adjustments.

The CBR once again reiterated to dispel any confusion or misunderstanding on this account and all the registered manufacturers and traders are advised to charge sales tax at the rate of 15 percent on the supplies to the registered persons and 18 percent for the non-registered persons.

They are also required to maintain prescribed records, issue sales tax invoices file monthly/quarterly returns in the designated branches of the NBP. Such persons are also entitled to claim the admissible amount of input adjustment against the sales tax paid on their taxable purchases.

All the fixed sales tax scheme including simplified sales tax procedure, trade enrolment certificate scheme or any other such scheme stand abolished since financial year 1998-99.

Therefore, it is advised that all the registered persons should carry on their business in accordance with the provisions of Sales Tax Act, 1990 and should follow the invoice-based VAT-mode of sales tax to avoid any complication and penalties.

Periodic audits would be conducted of all such persons and their records would be scrutinised in accordance with the principles of VAT-mode of Sales Tax, therefore, they are advised to maintain and keep their records fulfilling the requirements as prescribed under the Sales Tax Act 1990.