Latest news with #SalesTaxRules2006
Business Recorder
25-04-2025
- Business
- Business Recorder
All categories covered: FBR extends new set of rules for e-invoicing
ISLAMABAD: The Federal Board of Revenue (FBR) has extended new set of rules for e-invoicing and integration of sales transactions to all categories of taxpayers (corporate and non-corporate). Talking to Business Recorder, Adnan Mufti, partner at Moore Shekha Mufti, Chartered Accountants explained that the FBR has issued new set of rules for e-invoicing and integration of sales transactions vide Notification vide SRO 709(1)12025 dated 22 April 2025. SRO 709 has been in terms of Rule 150Q(2) of the Sales Tax Rules 2006. SRO 709 has notified the corporate and non-corporate sector to electronically integrate their hardware and software with FBR's computerised system used for generation and transmission of the e-invoice. However, this has left many businesses in a fix who are unable to factor out whether the new scheme is applicable to FMCGs or to entire taxpayers' community. E-invoices integration: FBR sets May 1 deadline for corporate entities Adnan Mufti further explained that originally the FBR had issued SRO 1525 dated 10 November 2023 which introduced Rule 150Q of Sales Tax Rules 2006. In terms of Rule 150Q of such rules, FBR had issued SRO 28 dated 10 January 2024, whereby, subject integration was limited to only FMCG sectors. Such integration was applicable from 1 February 2024. However, recently SRO 69 dated 29 January 2025 brought into place a new and overhauled text of Rule 150Q. The latest SRO 709 has been issued under such revamped Rule 150Q and broadly introduced 2 major changes, i.e., category of taxpayers to whom the rules would apply and date of application thereof. He contended that since previous text of Rule 150Q has been substituted; its underlying SRO 28 has also been done away with. Mufti further stressed out that now the earlier requirements of integration, which was only limited to FMCG sectors, has also been withdrawn and the new set of procedures have been extended to all categories of new category of taxpayers (corporate and non corporate), wef, new deadlines, ie, dates May 2025 and June 2025, as the case may be. Taking out the apparent confusion, Mufti was of the view that the foregoing issue needs to be addressed by FBR either by rescinding SRO 28 dated 10 January 2024 or issuing a clarification to this effect before the matter is taken to superior courts for litigation. He further lamented FBR for prescribing only one week's time for implementation of new scheme by the corporate sector without any consultation with stakeholders, which was impractical. The apparent haste on the part of tax administration is also evident by the fact that the Sales Tax General Orders required to be issued to effect complete implementation of subject scheme, have also not been issued by FBR as yet. Mufti called upon for the need for on boarding all stakeholders including ICAP, PBC, FPCCI and KTBA for effective implementation of the new framework so that all technical/legal glitches of the scheme are satisfactorily removed. Copyright Business Recorder, 2025
Business Recorder
23-04-2025
- Business
- Business Recorder
E-invoices integration: FBR sets May 1 deadline for corporate entities
ISLAMABAD: The Federal Board of Revenue (FBR) has given deadline of May 1, 2025 to the corporate entities and companies to electronically integrate their hardware and software with customs computerized system to generate and transmit electronic invoices. In this regard, the FBR has issued an S.R.O.709(I)/2025 here on Wednesday. The non-corporate registered persons have been given deadline of June 1, 2025 for integration purposes. This would cover importers, manufacturers and wholesalers/dealers/distributors of fast-moving consumer goods to integrate their electronic invoicing system with the FBR's digital invoicing system. Retailers, other businesses: FBR to grant two more licences to private cos for integration of e-invoicing According to the notification dated April 23, the registered persons specified shall electronically integrate their hardware and software with customs computerized system through license integrator or Pakistan Revenue Automation Limited (PRAL) and shall generate and transmit electronic invoices which reflect from the specified date. From Feb 1, 2024, all importers and manufacturers of fast-moving consumer goods, all wholesalers/dealers, distributors of fast-moving consumer goods and all wholesaler-cum-retailers engaged in bulk import and supply of fast-moving consumer goods on wholesale basis to the retailers were required to transmit sales tax invoices electronically. The FBR had notified that the following registered persons shall transmit sales tax invoices electronically in terms of rule 150Q of its Notification No. 1525(1)/2023 as prescribed under Chapter XIV of the Sales Tax Rules 2006 namely-: all importers and manufacturers of fast-moving consumer goods, all wholesalers (including dealers), distributors of fast-moving consumer goods and all wholesaler-cum-retailers engaged in bulk import and supply of fast-moving consumer goods on wholesale basis to the retailers. Copyright Business Recorder, 2025
Business Recorder
23-04-2025
- Business
- Business Recorder
Registered persons: FBR expands scope of sales tax suspension
ISLAMABAD: The Federal Board of Revenue (FBR) has expanded the scope of sales tax suspension of registered persons. According to the amendments introduced in the Sales Tax Rules 2006, the FBR has elaborated conditions for suspension of sales tax registered persons. The suspension can occur if refusal to allow access to business premises inspection refused under Sections 40B and 40C of the Sales Tax Act. Moreover, records demanded under sections 25 and 37 are not provided would be liable to suspension. FBR imposes major restrictions on ST-registered persons The suspension could take place in cases of disproportionate activity. The business turnover becomes five times more than the sum of declared capital and liabilities; transactions with suspended persons; making purchases from or sales to suspended persons exceeding 10 per cent of total purchases/supplies, or exceeding Rs50 million, whichever is higher; non-filing of sales tax returns; non-filing for three consecutive months; null filing (zero activity) for six consecutive month and tax fraud activity detected under Section 2(37). Revocation of suspension must occur within 30 days of receiving the taxpayer's reply to the suspension notice, tax expert added. 'Tax fraud' is now specifically linked to clause (37) of Section 2 of the Sales Tax Act, 1990. Copyright Business Recorder, 2025
Express Tribune
16-03-2025
- Business
- Express Tribune
POS systems disrupt retail operations
Listen to article The Chainstore Association of Pakistan (CAP), on Saturday, raised serious concerns over ongoing technical and enforcement challenges faced by tier-1 retailers integrated with the Federal Board of Revenue's (FBR) Point of Sale (POS) system. CAP Chairman Asfandyar Farrukh urged FBR Chairman Rashid Mehmood Langrial to intervene immediately, as persistent system failures and enforcement actions are disrupting retail operations and creating significant commercial risks. Despite full compliance, integrated retailers face frequent technical issues, including forced disconnections due to profile expiry, invoices failing to sync with the FBR portal, unexplained version changes, and poor communication of system updates. Additionally, manual invoice reconciliation, the lack of bulk download options, and outdated technical documentation (unchanged since 2019) further burden retailers. Retailers also report excessive enforcement actions, including sudden sealing of their businesses due to unverifiable invoices, often resulting from system failures rather than negligence. Frequent demands for additional tax deposits before sales tax return filings, despite valid input tax adjustments, are adding to retailer frustration. "Such demands must be rationalised to prevent undue pressure on the compliant businesses. These actions not only damage retailer confidence but also discourage further adoption of the POS integration system," CAP said. The situation has worsened with the introduction of SRO 69(I)/2025, imposing impractical compliance requirements amid system inefficiencies. Patron-in-Chief Rana Tariq Mehboob called for revising the Sales Tax Rules 2006 in consultation with the organised retail sector and requested a meeting with FBR leadership to resolve these critical challenges.
Express Tribune
16-03-2025
- Business
- Express Tribune
Jewellery outlet sealed for violating POS rules
Regional Tax Office One (RTO-I) has sealed a jewellery outlet on Tariq Road on Saturday for violating Point of Sale (POS) regulation, set for the jewellery sector. This is the first of its kind action in this sector, carried out within the administrative jurisdiction of Zone 3 of the Regional Office. The action was taken under 150-ZEO of the Sales Tax Rules 2006 for issuing receipts not linked to the POS system. On this occasion, Chief Commissioner RTO One, Dr. Faheem Muhammad, appreciated the initiation of actions against POS violations in the jewellery sector.
