SRO 350 requires to Furnish Business Balance Sheet
FBR has issued SRO 350 requires Every individual, Association of Persons (AOP) and Single Member Company (SMC) other than manufacturer is required to furnish balance sheet indicating the amount of business capital with corresponding assets in the bank, amounts attributable to partners with percentage. SRO 350 requires to Furnish Business Balance Sheet with the Commissioner Inland Revenue.
SRO 350 of 2024 Registration / Profile Commissioner’s Approval
S.R.O. 350(I)/2024 dated 07th March, 2024
1. Individuals, AOPs and Single Member Companies other than manfacturer
2. Declaration of business capital for new sales tax registrations (Balance Sheet)
3. Declaration of business capital (Balance Sheet) and biometric re-verification for person already registered in sales tax
4. Pre-verification and post-verification of manufacturers for sales tax registration
5. Limitations on sales based on the amount of business capital
6. Provisional return of the buyer in case seller fails to file his return within due date
7. Declaration of corresponding sales to claim sales tax withholding
8. Certain parallel omissions
9. Sale return / credit note of unregistered person
Balance Sheet Sales
• Every individual, Association of Persons (AOP) and Single Member Company (SMC) other than manufacturer is required to furnish balance sheet indicating the amount of business capital with corresponding assets in the bank, amounts attributable to partners with percentage.
• Already registered will submit balance sheet by 6th of April, 2024
• If balance sheet not submitted, the RP will require authorization from Commissioner through IRIS for filing of Sales Tax Return
• If RP wants to declare sales more than 5 times of his capital, then again approval from commissioner is required.
Local Registration Office (LRO)
• Local Registration Office (LRO) is now required to manually check the requirements under sub-rule (2). Individual, AOP and Single Member Company will only be registered after LRO is satisfied that all the requirements has been fulfilled.
Verification of Manufacturer
• The Board may require pre verification or post verification through field offices or a third party authorized by the Board.
Bio metric verification
• Individual, any member of AOP and director of SMC shall visit NADRA e-Sahulat during the m/o July every year, for bio-metric re-verification, otherwise Commissioner’s authorization will be required for filing of return
Provisional Return
• Return filed by the buyer shall be taken as “PROVISIONAL RETURN”, until the respective seller files his return for the same tax period up to the last day of the month in which the due date of filing of return falls.
• If seller files return by last day of the month, the buyers return will be considered “Valid”.
• If seller fails to file his return by the last day of the month, the invoices issued by the non-filer seller will be deleted by IRIS from the return of buyer and sales tax liability of the buyer will be calculated without corresponding input tax in the provisional return of the buyer. “Invalid until payment of the said computed sales tax liability”.
Example:
Return for the m/o February 2024 submitted by B (the buyer) on 18-03-2024 by claiming input tax of invoices issued by A (the Seller), the return of B will be treated as Provisional return till submission of return by A. If A submits return by 31st of March 2024 then the return of B will be considered as “Valid
Return” otherwise it’ll be treated as “Invalid Return” till deposit of input tax claimed by B on invoices issued by A.
Sales Tax Withholding
A registered person can only claim amount of sales tax withheld by a withholding agent if he declares the corresponding sales to such withholding agent in his return. Otherwise, the amount of sales tax withheld and reduction in output tax
shall not be allowed to such person.
Rule 150ZZI(6). Responsibility of a withholding agent
In case the withholding agent is also registered under the Sales Tax Act, 1990, or the Federal Excise Act, 2005, he shall deposit the withheld amount of sales tax along with return filed for the month in which the purchase was made in the manner as provided in Chapter II, along with other tax liability
Sales Return from UR Buyer / Credit Note
A registered person can only claim amount of sales tax withheld by a withholding agent if he declares the corresponding sales to such withholding agent in his return. Otherwise, the amount of sales tax withheld and reduction in output tax shall not be allowed to such person.
Already instructed by FBR vide C. No. 5(17)ST-L&P/2021/136051-R dated 5th September, 2023.
Certain Parallel Omissions
• Subject notification omitted sub-rule (4) of Rule 18 which provides that buyer shall be informed by the automated system of the Board that all the suppliers have declared supplies made to him. As discussed, the concept of provisional sales tax return is introduced therefore this [sub-rule (4)] is no more required.
• Similarly, rule 18(5)(i) is also omitted which provides that buyer shall be provisionally allowed with adjustment of input tax in case supplier has not filed his monthly sales tax return and such input tax is considered as inadmissible if supplier fails to file his monthly sales tax return by the 10th day of the next month.
• Subject notification omitted the reference of section 8(1)(I) [supplies not declared by the supplier] and proviso to section 7(2)(i) [input cannot be claimed if supplier does not declare supplies in his return by due date] of the Sales Tax Act, 1990 and section 6(2A) [FED input of goods/services claimed by buyer but not declared by the supplier] of Federal Excise Act, 2005” used in rule 18(7), because the scope of disallowance is extended as discussed earlier
DRAFT SPECIAL PROCEDURE FOR SMALL TRADERS AND SHOPKEEPERS
(TAJIR DOOST SCHEME)
Taji Doos Schem Registration
• Scope:
• Applicable on: Traders and shopkeepers (includes wholesaler, dealer, retailer, manufacturer cum retailer, importer cum retailer or any wholesaler cum retailer) operating through a fixed place of business including a shop, store, warehouse, office or similar physical place.
• Areas: Karachi, Lahore, Islamabad, Rawalpindi, Quetta, Peshawar
• Exclusion: Company, National or International chain of store in more than one city, and person or class of persons excluded by the Board.
• Commencement:
• Part I – Registration – 1st of April, 2024
• Part II – Payment of Advance Tax – 1st of July, 2024
• Registration:
• Last Date: 30-04-2024
• Sources: FBR Portal, Tax Asaan Application, FBR Tax Facilitation Center.
• If not register voluntarily, the Commissioner may register such person
• Penalty u/s 182 [Sr. # 3 Table – Rs. 10,000]
Taji Doos Schem Advance Tax
• Minimum Monthly Advance Tax payable by a person
• Monthly advance tax
• Minimum tax on income from business covered under this scheme
• Computation method will be prescribed [seems that it’ll be calculated on the basis of indicative income which will be calculated on the basis of annual rental value of the business premises, which is 10% of the fair market value of the business premises u/s 68(4)]
• If advance tax computed at zero, then 1,200 pa is payable
• 25% of advance tax will be reduced,
• if paid in lumpsum before due date for the whole year or the balance payable.
• If person file return of TY 2023 (if already not filed) before due date of 1st installment.
• Mode and Manner of Payment
• Due date: 15th of every month
• Separate CPR
