The Federal Board of Revenue (FBR) has taken a major documentation measure to broaden the tax base and directed profit-earning businesses, retailers, professionals, and service providers to electronically integrate with the FBR system and register their all point of sales (POS) from July 1, 2024.
Earlier, only big retailers were required to be integrated with the FBR’s POS system. Now, dozens of professional service providers and health care professionals and retailers including manufacturer cum-retailer, wholesaler-cum retailer, importer-cum-retailer have been added to the list for integration with the FBR’s system.
In this regard, the FBR has directed foreign exchange dealers/exchange companies, clubs, private educational institutions, private hospitals, restaurants/hotels/guest houses/marriage halls, courier services, beauty parlors, health clubs, medical services, pathological laboratories, chartered accountants and retailers to integrate their POS with the FBR’s system. The FBR issued SRO.428 (I)/2024 to amend Income Tax Rules, 2002 on Friday.
The integrated enterprises shall make all payment counters comprising of point of sale at each outlet available for installation of the systems, FBR said.
These taxpayers and service providers will install such fiscal electronic devices and software, as approved by the Board. The businesses shall notify the Board, through the Computerized System, of all the establishments, from which they intend to carry on business and shall register each point of sale (POS) to activate the integration.
Under the SRO.428 (I)/2024, a licensed integrator, who wants to supply an electronic fiscal device and software must apply to the Board for the license.
The fiscal electronic device and software would be installed by foreign Exchange Dealers/Exchange Companies; private schools, colleges, universities, professional institutes/ vocational training centers; restaurants, hotels, motels, guest houses, marriage halls, marquees, clubs including race clubs; inter-city travel by road; courier services and cargo services, services provided for personal care by beauty parlors, clinics and slimming clinics, massage centers, pedicure centers.
The integration with the FBR will be done by all medical service providers including dentists, physiotherapists; plastic surgeons, hair implant surgeons, and veterinary doctors; pathological laboratories, medical diagnostic laboratories including X-Rays, CT scans, M.R. Imaging etc.; private hospitals or medical care centers providing medical consultation, hospitalization or other ancillary services; health clubs, gyms, physical fitness centers, swimming pools and multipurpose clubs such as Lahore gymkhana, Islamabad club, Chenab Club, Karachi gymkhana, Royal Palm Lahore, Polo club, etc. operated by any civilian/ non-civilian administration; photographers, videographers and event managers; Cost and Management Accountant and retailers including manufacturer cum-retailer, wholesaler-cum retailer, importer-cum-retailer or such other person who combines the activity of retail sale with another business activity, FBR added.
The FBR has also issued details of exclusions where integration with the FBR system would not be required under SRO.428 (I)/2024.
Audit the special education centres needs to be done on highest priority.