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FATE Wing -FBR
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Frequently Asked
Questions on Electron Filing of Sales Tax
Return
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| Q. 1 |
Is it possible to file a sales tax
return annually? |
| A. |
Monthly Return |
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Under the standard procedure a registered person is required to file
monthly return by the 15th day of the month following the period in
which the supplies were made, in the designated branches of National
Bank of Pakistan. In case of certain categories as mentioned below
procedure has been devised to file return on monthly and quarterly
basis.
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Quarterly Return |
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The taxpayers falling exclusively in the category of
commercial importer, i.e the importer who imports taxable goods for
business activity other than industrial use of such goods or
manufacturing by himself, is required to file the return on quarterly
basis.
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Annual Return |
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A private or public, Ltd Company is to file annual
Sales Tax return, for a financial year by the 30th September of the
following financial year.
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Q. 2 |
What is the penalty for filing a sales tax
return beyond the prescribed period? |
A. |
If a return is not filed within 15 days after the end of
the relevant tax period, a registered person will be liable to a penalty
besides additional tax at the rate of Rs 100/- per day. If the delay is
beyond 15 days , a penalty of Rs. Five Thousansd is payable.
If full amount due is not paid, any outstanding balance will also attract
additional tax and a penalty.
If a registered person fails to deposit the correct amount of tax for two
consecutive months he/she will be deemed to have committed a tax fraud for
which the penalty is Rs. 10,000 or five percent of the amount of tax
involved, whichever is higher, besides prosecution. |
Q. 3 |
I am an individual tax payer. Do I have the
facility to file my sales tax return electronically? |
A. |
Facility of Electronic filing of Sales Tax
return has also been made available to the following categories of
registered persons.
a). the registered persons falling in the jurisdiction of the Large
Taxpayers Units..
b) the private and public Ltd companies.
c). other taxpayers who may like to opt for electronic filing of
Sales Tax returns.
From 1st July 2008, electronic filing shlall be made mandatory for all the
categories of taxpayers. |
Q. 4 |
What is the procedure to opt for electronic
filing? |
A. |
The procedure for e-filing has been laid down in the
Sales Tax General Order No.4/2007.A registered person shall obtain a unique
identifier, PIN code and a secure password by visiting FBR’s web portal at
e.fbr.gov.pk. He can then file the return by selecting declaration “sales
tax” from the web portal. The return data shall be filled in a web form and
directly transferred to FBR’s server. |
Q. 5 |
Please give the stepwise hands on procedure
for electronic filing. |
A. |
To file the return, the registered user
shall logon at e.FBR.gov.pk by using assigned User ID. Following steps will
be followed:
− Select Declaration -> Sales Tax -> Sales Tax Return
− Select the Tax Period [Month, Year] from the drop down list
− Click the Monthly Return link
− Return form will be displayed which will be filled in
accordance
with the instructions in the Sales Tax Rules, 2006.
− E-filing can be completed in following stages:
Preparation: The user shall fill in all the relevant fields. (The
return can be saved at any time during preparation process to avoid data
loss)
Verification: The return can be verified by the person having
access to PIN code. He shall press the Verify Button given at the bottom of
form and follow the instructions.
Payment: Payment can be made by selecting either of two
options provided in the form as below:
(i) Payment Challan: This option is to be utilized by
persons who want to deposit tax amount in a branch of National Bank which is
not online with FBR. The payment challan shall be printed and taken to the
bank where payment shall be made and CPR no. shall be obtained. This number
shall be fed in the System using the ‘Feed CPR’ button.
(ii) e-Payment: This option can be availed by persons
opting to deposit tax amount in an NBP branch which is online with FBR
server. After verifying the return, e-Payment button can be clicked and a
payment slip number shall be generated which can be taken to the bank and
amount deposited against the same. The bank shall accept the payment and
provide an acknowledgement.
Submission: The user shall click the Submit button and a
message shall appear at the top stating that your return has been submitted.
Return Submission Certificate can be printed by clicking the Print
Certificate button. It can also be saved on user’s computer in PDF/Excel
format.
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Q. 6 |
How can a person who is already not
registered , avail the option of e-filing after their registration? |
A. |
Persons, not already
registered, shall visit the FBR’s web portal or Computerized System at
https://e.fbr.gov.pk and select
“registration -> e-enrolment” option from the menu and provide basic
information as required. They shall be then required to fill in a form
containing the particulars already available in the System. The intending
user shall also be able to correct or update the particulars/ details
already in the System. The name of an authorized person shall be mentioned
on the form. The form shall be printed and signed by the competent person.
The authorized person shall visit the Tax Facilitation Centre of respective
Collectorate along with the printed form and his original Computerized
National Identity Card. The officer incharge of the Facilitation Centre/
Division, not below the rank of an Assistant Collector, shall verify the
particulars on the form with those in the System and after being satisfied
in this respect shall approve the allocation of user ID, which shall be sent
to the address provided. The Board, however, can waive any of the aforesaid
requirements. |
Q. 7 |
How an electronic return is
to be filed in case of no business activity? |
A. |
In case of no business
activity during the relevant period i.e. when there are no sales, purchases
etc. and no payment is due, the user shall click the ‘Null Return’ button
and then can proceed for submission of the printing the return without
following through all the steps provided above. |
Q. 8 |
I am
a retailer with annual sales less than Rs.2 millions. Am I liable to be
registered? |
A. |
Under sales tax law , thefollowing categories of business are liable
to be registered:
a.All importers
b. All wholesalers (including dealers) and distributors
c. Manufacturers not falling in cottage industry. {Cottage
industry is defined as having annual turnover below Rs.5 million and
whose annual utility bill (including electricity , gas and telephone)
does not exceed rupees six hundred thousand}.
d.Retailers (having value of supplies of over 5 million rupees,
in any tax period during the last 12 months.
e. A person required under any Provincial or Federal Law to be
registered for purpose of any duty or tax collected or paid as if it
were a levy of sales tax, e.g. service providers like hotels, clubs,
caterers, customs agents, ship chandlers, stevedores, courier services
etc.
f. Persons making zero-rated supplies, including commercial
exporter who intends to obtain sales tax refund against his zero rated
supplies .
g.A person who is required to be registered by virtue of
aforesaid criteria,but still avoids registration, can be compulsorily
registered by the department, after proper enquiry , under sub-rule 1 of
Rule 6 of Sales Tax Rules, 2006.
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Q. 9 |
What
is the Procedure of Registration ? |
A. |
- The application may be submitted electronically on Form STR-1 as
well as either through post or courier services to Central Registration
Office (CRO). Application can also be sent to Local Registration
Office (LRO) in the form of hard copy. The LRO after proper scrutiny of
documents and necessary editing of the application and particulars,
electronically forwards the application to CRO.
- All the columns of the Forms have to be duly filled in as per
instructions given with the Form.
- After verification, the Central Registration Office will issue a
Registration Certificate bearing registration number and mail the same
to the Registered Person, on a prescribed Form (STR-5)
Office (CRO) normally verifies the contents from the data available with
it, but has an authority to get an enquiry conducted through Local
Registration Office, to verify contents of declaration by a person. The
CRO may reject the application within fifteen days from the date, the
complete application is received in CRO, under intimation to the
applicant, specifying the reasons for such rejection.
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Q. 10 |
Where a person is to be registered? |
A. |
A corporate person (listed/
unlisted public company, private limited company) has to be registered under
the Collectorate, LTU or RTO where the registered office of the businesss is
located.
A non-corporate person is to be registered under the collectorate, LTU or
RTO, where the business is actually carried on.
In case of non-corporate person has a single manufacturing unit and the same
is located in a different place than the business premises, in the
Collectorate having jurisdiction over the manufacturing unit. A corporate
person has the option of transferring his registration to the place of
business. |
Q. 11 |
I want to be registered
under sales tax law. What documents do I have to furnish alongwith my
application for registration? |
A. |
Following information is
required to be furnished in the registration form.
- Complete business name
- Business nature, main / activity or service;
- Complete address of Head Office and all business
units,godowns,outlets mentioning, phone, fax, e-mail, electricity, gas
consumer no. etc.
- All Bank account numbers, with name and address.
- NTN (National Tax Number)
- NIC (National Identity Card Number) of the owner, partners or
directors of the business (passport number in case of foreigner).
- In case of a company, registration number and date of incorporation.
- Every director / member of AOP has to fill in STR – 1 (A) Form.
- Date of commencement of business and initial capital employed.
- The mode of maintenances of business records should also be
mentioned.
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Q. 12 |
I intend to change the
address of my business premises. How can I get my registration record
amended? |
A. |
In case there is a change in
the name asddress , or other particulars as stated in the registration
certificate, the registered peson shall notify the change in the prescribed
form STR-2 to the CRO within fourteen days of such change. The change in the
business category shall be allowed after LRO has verified the manufacturing
facility and confirmed the status as industrial consumer of the electricity
and gas distribution companies. |
Q. 13 |
As I have shifted my
business to another city, I want to get my sales tax registration
transferred to the other respective collectorate having jurisdiction in over
my new business address. Please tell me the procedure as to , how to get my
registration transferred to another collectorate. |
A. |
In case a registered person
intends to shift his business activity from the jurisdiction of one
collectorate, to another collectorate, or as the case may be to an RTO or
LTU, or he has any other valid reason for such transfer, he shall apply to
the CRO for transfer of his registration , along with form STR-2. The CRO
may subject to such conditions, limitations or restrictions as it may deem
fit to impose, by an order , transfer the registration of a registered
person from the jurisdiction of one collectorate , to another collectorate ,
or as the case may be to the LTU or RTO. The return for the tax period in
which the registration is transferred shall be filed in the collectorate
from where the registration is transferred.
Revised Registration Certificate.
In case of multiple registrations, the registered person shall apply on Form
STR-1 for single registration to the CRO which after ascertaining tax
liabilities from concerned Collectorate shall issue revised registration
certificate in which previous registration number shall be merged.
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Q. 14 |
Which categories of taxpayers can claim refund? |
A. |
Refund of sales tax paid as
input tax can be claimed by the following registered persons in the
respective situations:
- Registered manufacturer-cum-exporters and commercial exporters who
zero rate all or part of their supplies under section 4 of the Act;
- registered persons who acquire tax paid inputs for use thereof in
the manufacture of goods chargeable to sales tax at the rate of zero
percent under the Act or a notification issued there-under
- Registered persons claiming refund of the excess amount of input tax
which could not be consumed within three months;
- Registered persons who acquire tax paid inputs used in the export of
goods , local supply of which is exempt under the Act or any
notification issued there-under.
Refund can also be claimed if an amount of sales tax is paid
inadvertently or by mistake.
- Refund may also be claimed if an amount is paid on demand of the
department, but subsequently the demand is set aside by any competent
authority, Tribunal or Court.
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Q. 15 |
What
is the procedure for claiming a refund claim and what supportive
documents are required for refund claim? |
A. |
The
refund claimant shall submit to the Refund Division of the concerned
Collectorate , RTO or Large Taxpayer unit , as the case may be, the refund
claim in computer diskette in the prescribed format or software along-with
the following documents, namely:-
(a)
Input tax
invoices or as the case may be, goods declaration for import in respect of
which refund is being claimed;
(b)
output tax
invoices and summary of invoices for local zero rated goods.
(c)
goods
declaration for export (quadruplicate copy) indicating Mate Receipt number
with date or airway bill or railway receipt or postal receipt besides the
examination report endorsed on the reverse side thereof by the customs
officers; in case of claims by persons other than manufacturer-cum-exporter
of goods zero-rated in a notification issued under section 4 of the Act.
Provided that in case of imports or exports processed through PACCS,
submission of goods declaration shall not be required and cases shall be
processed by cross-matching of the declarations with the data available in
the system.
(d)
copy of
House and Master bill of lading and airway bill or as the case may be,
railway receipt in token or verification of the goods taken out of Pakistan;
and
(e)
statement of
the tax paid inputs, in respect of which refund is claimed by the claimants
other than the manufacturers of the goods zero-rated for supplies.
(2)
In addition
to the documents specified above, a commercial exporter shall submit bank
credit
advice issued by the concerned bank and copy of the duty drawback order, if
issued by the customs authorities.
(3)
Where the
refund claim is filed under section 66 of the Act, the claimant shall submit
an application for refund indicating his name, address, registration number,
the amount of sales tax refund claimed and reasons for seeking such refund
along-with following documents, namely:---
(a)
input
tax invoices in respect of which refund is claimed;
(b)
proof
of payment of input tax claimed as refund; and
(c)
copy of
the relevant order on the basis of which refund is claimed.
(d)
The
refund claimed under section 66 of the Act shall be sanctioned after ver
(e)
copy of
the relevant order on the basis of which refund is claimed.
(4)
The refund
claimed under section 66 of the Act shall be sanctioned after verifying that
no adjustment or refund of input tax has been claimed earlier and that the
goods have been duly accounted for in the inventory records and the invoices
claimed are validated by the CREST (Computerised Risk – Based Evaluation of
Sales Tax) System. |
Q. 16 |
Under sales tax law what record a taxpayer is supposed to maintain.? |
A. |
A
registered
person must keep a record in English or Urdu of all the goods and services
supplied, purchased or imported in the course of business, in the following
manner.
The
record of sales should indicate the following details of goods supplied or
services rendered:
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description;
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quantity;
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value;
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name and
address of the customer, and
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amount of
tax charged.
At
the end of each month, a registered person must add up the sales tax shown
in these records, and transfer the total to sales tax account as output tax.
The
record of purchases and imports should indicate the following details of
goods purchased or received or services hired:
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description;
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quantity;
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value;
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name,
address and registration number of the supplier,
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amount of
tax paid on purchases.
Record of Payments/Receipts
All
payments or receipts of amount of sales tax on purchases or supplies above
Rs. 50,000 (except utility bills) should be made through bank instruments
indicating specified bank accounts of both the persons i.e., sellers and
purchasers. It is recommended that records/ photocopies of all bank
instruments through which payments of sales tax are made or received must be
kept along with bank statements for the purpose of compliance of section 73
of the Act and to avoid audit complications.
A
registered person should also keep record of
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Zero-rated
and exempt supplies,
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Record of
invoices, credit notes, debit notes, bank statements, inventory records,
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Utility
bills, salary and labor bills, rental agreements, sale purchase agreements
and lease agreements. |
Q. 17 |
Under the sales tax law for how much timer a taxpayer is required to
maintain the record. |
A. |
A
registered person is required to maintain a record and documents for a
period of five years after the end of the tax period to which such record
and documents relate. |
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