The Federal Board of Revenue has eased the requirement of filing balance sheets of assets and liabilities for individuals, association of persons (A.O.P) and Single-member companies who are already registered.
In this regard, the FBR has issued an SRO581.
Federal Board of Revenue has implemented stringent conditions for new sales tax registration. These conditions were introduced last month through amendments in the sales tax registration rules of 2006 vide SRO 350(I)/2024 dated April 7th, 2024. These amendments aim to restrict various activities and transactions that may lead to tax fraud.
The Federal Board of Revenue (FBR) recently introduced stringent conditions for new sales tax registration to reduce the risk of tax fraud. These amendments have placed restrictions on various activities and transactions aimed at reducing the risk of tax fraud.
One of the new conditions was the mandatory filing of the balance sheet for obtaining fresh registration by an individual, partnership firm or a single-member private limited company. Interestingly, this condition was also made applicable to already registered persons falling above a certain class, who were required to comply with this condition within 30 days of introducing the law.
Unfortunately, many registered persons were unaware of this requirement as no prior notice, intimation, or information session was held by the board.
As a result, after Eid Holidays, when existing registered persons attempted to file their sales tax return or Annex ‘C,’ they were unable to proceed since this condition was not complied with, leading to a chaotic situation in the trade.
However, after serious representation of tax bars, trade bodies, and various business forums, the board has relaxed the condition and lifted the check from the electronic filing.
This may enable a large number of genuine businesses to file their monthly sales tax returns. According to notification 581 dated April 18th, 2024, the board has partially relaxed the condition of filing a balance sheet of assets and liabilities for individuals, A.O.P, and single-member companies for already registered persons.
