Federal Board of Revenue (FBR) has started receiving live transactions of sales for finished articles of textile and leather, the board said on Tuesday.
The eligible persons integrating or having already integrated their systems with the FBR can now avail a reduced tax rate of 6 percent on their sales as announced by the federal government, according to FBR’s statement.
The federal government had notified, effective from July 1st, 2018, a reduced rate of 6% for finished articles of textile and leather for registered persons who are connected with FBR’s computerized system.
This system was made operational by issuing SRO 1360(I)/2018, dated 12.11.2018, the statement added.
As many as 75 registered persons are now integrated with FBR and declaring sales of their 2574 outlets through this system, FBR’s system is now ready for receiving live sales transaction as specified in rule 150ZEB of Sales Tax Rules 2006.
The eligible registered persons can download the software and integrate all of their declared outlets with FBR’s system.
This is to be done by March 3, 2019, in order to continue selling leather/textile items at the reduced rate in the future. In case of failure, the difference in the amount would be recoverable. The persons volunteering to integrate their systems for availing the reduced rate on future supplies and those who fulfill the conditions set in the rules can approach the respective Commissioners for approval.
Websites hosted with a registered domain name have also been recognized to be treated as sales made through Point of Sale (POS).