The Federal Board of Revenue (FBR) has issued a Sales Tax General Order (GSTO), assuring traders that there will be no condition on the seller to ensure that the buyer is providing them the correct CNIC information.
The sellers were afraid that the Board might move against them if the buyer provided wrong CNIC information and they filed it in the Sales Tax Returns. The order says that the seller should incorporate CNIC information in their sales tax returns in good faith and the FBR will not take action against them.
Here’s the official order:
FBR has issued the Sales Tax General Order No. 106/2019 in view of the problems reported by the registered persons in ensuring proper identity of the buyer to fulfill the requirements of reporting NTN/NIC of the buyer in terms of Section 23 of the Sales Tax Act, 1990, it is directed that the NIC/NTN of the buyer with respect to taxable supplies to an unregistered person shall be deemed to have been reported in good faith by the supplier provided that the tax invoice complies with the requirements of Section 23 (b) of the Act and the payments made by or on behalf of the unregistered purchaser of the amount of the tax invoice, inclusive of sales tax and applicable further tax is deposited into the suppliers declared business account.
Moreover, the CNIC provided by the purchaser will be authenticated by NADRA. The order states that the NIC/NTN provided must not be of an employee of the seller or his associates as defined under Income Tax Ordinance 2001.
In this regard, the issuance of a show-cause notice to a registered seller, on account of an issue, coming up due to the purchaser’s NIC, shall not be made without prior approval of Member IR, FBR after providing him an opportunity to be heard.
FBR Installing Point of Sales System in Private Hospitals
Furthermore, FBR is considering to install Point of Sales invoicing systems in all ‘big private hospitals and medical centers’. This was revealed by the Chairman FBR, Shabbar Zaidi in a tweet today.
This seems to be the next step in increasing the tax net by the FBR.