Table of Contents

FBR Directs 124 Big Retailers to Integrate with POS System

To prevent denial of input tax credit, the Federal Board of Revenue (FBR) has ordered 124 unregistered merchants (Tier-1) to integrate them with the FBR’s Point of Sale (POS) system by February 10, 2023.

Read More: Zindigi App Became The Top 5th Most Downloaded App in Pakistan

Sales Tax General Order (STGO) 7 of 2023 was released by the FBR on Friday. The FBR informed merchants that their input tax claims will be denied without additional notice or legal action.

“Their input tax claim would be refused as above, without any additional notice or proceedings, with the filing of Sales Tax Return for the month of January 2023 for all herein informed T-lRs not having yet integrated, creating tax demand by the same amount,” FBR asserted.

Read More: Enjoy Ad-Free HBL PSL 8 on Tapmad in Pakistan 2023

The said large stores must be integrated with the Board’s POS system, according to the FBR’s STGO. The list of 124 businesses that were identified showed that the major merchants are not registered with the sales tax department for the POS and are not depositing the sales tax they have collected from customers into the national exchequer.

The FBR published a list of 81 large shops (Tier-1) last month. These stores are required to interface with the FBR’s POS system and will not be eligible for a 60% input tax credit if they do not. There are currently 124 large merchants (Tier-1) that must be connected with the POS system. The board has determined that these large retailers (Tier-1) will face increased sales tax demands if they do not connect with the FBR’s POS system by the deadline of February 10, 2023.

Read More: Acute Petrol Shortage to Hit Pakistan Next Week

In accordance with the sub-section (6) that the Finance Act of 2019 added to section 8B of the Sales Tax Act of 1990 (“the STA, 1990”), a Tier-l Retailer (“(T-1R)”) who did not integrate its retail outlet in the manner specified under sub-section (9A) of section 3 of the STA, 1990 during a tax period would have a 15 percent reduction in its adjustable tax for that period.

According to the Finance Act of 2021, the 15 percent figure has been increased to 60 percent.

With effect from July 2021 (Sales Tax Returns filed in August 2021), all Tiers that are required to integrate but have not yet integrated are to be handled in accordance with the procedure outlined in STGO No I of 2022 issued on August 3, 2021, in order to operationalize this significant legal provision.

Read More: Chicken Meat Prices Break All Previous Records in Pakistan

According to STGO 17 of 2022, dated May 13, 2022, the process for excluding a Tier-I entity from this list of identified Tier-I entities shall be followed, the FBR noted.

For more updates, stay tuned to Al Sadat Marketing News!

You can also invest in other famous and most in demand housing societies, such as , Blue World City,  Rudn Enclave7 Wonders City PeshawarTaj ResidenciaKingdom Valley,  New Metro City Gujar KhanForest Town RawalpindiUniversity Town RawalpindiICHS TownPark View City IslamabadMulti Gardens B17 Islamabad and Nova City Islamabad.

Al Sadat Marketing please contact 0331 1110005 or visit https://alsadatmarketing.com/

Few more real estate housing schemes which are trending now a days in Islamabad by including: Faisal Town Phase 2Prism Town Gujar KhanNew City ParadiseEighteen Islamabad7 Wonders City IslamabadCapital Smart City,  Silver City IslamabadThe Life Residencia,  Faisal Town IslamabadIslamabad Golf CityIslamabad Model Town and Marble Arch Enclave.

Al Sadat Marketing is an emerging Real Estate Agency headquartered in Islamabad, Pakistan. With over 10+ Years of experience, Al Sadat Marketing is providing its services and dealing all trending housing societies projects in different cities of Pakistan. Islamabad Projects, Rawalpindi Projects, Gujar Khan Projects, Burhan Projects, and Peshawar Projects etc.

Book Your Plot Now: +92 331 111 0005

Tags :

Share :

About Author
About Author

Syed Sadat Hussain Shah

Talk to Us!

Latest Posts

Categories