The Federal Board of Revenue (FBR) will charge 3 percent more in sales tax on the supplies to the private hospitals, non-governmental organizations (NGOs), and charitable organizations that have not obtained sales tax registration numbers (STRNs).
It issued a clarification on the applicability of further sales tax in this regard today.
According to the clarification, the Health Care Devices Association of Pakistan letter on the subject is to be referred to, and SRO.648(I)/2013 provides an exclusion from charging further tax as envisaged under section 3(IA) of the Sales Tax Act, 1990.
Supplies made to persons who procure goods to be used in their business, whether or not such goods are in furtherance of business, will attract further tax under section 3(1A) of the Sales Tax Act, 1990, if such persons have not obtained an STRN.
As supplies to government, semi-government, and statutory regulatory bodies are excluded from further tax as provided under serial number 12 of the aforesaid SRO as amended through SRO.692(I)/2019, supplies to these entities. whether registered under the Sales Tax Act, 1990, or not, will not attract further tax.
Furthermore, supplies made to the private hospital, NGOs, and charitable organizations that have not obtained sales tax registration numbers will attract more tax, irrespective of the fact that such goods are otherwise consumed by these entities, the FBR added.
