FBR Sales Tax
Chief Hamid Memon announced in a news briefing on Thursday that in the next couple of days, the FBR will start paying sales tax
refunds in the range of Rs15 billion to Rs20bn a month to the five export-oriented sectors through the FASTER system.
The circular clarifies that a business which is not registered for sales tax
and does not have an STRN is not authorized to charge sales tax
on the invoice.
'It is, therefore, clarified that sales tax
registration number (STRN) (thirteen digits) is issued to every person who is registered for sales tax
purpose and only that person is authorized to change sales tax
on his taxable sales except where goods fall under third schedule to the Sales Tax
Act-1990,' reads the circular issued by FBR.
The FBR, in a circular, stated that the general public had lodged complaints against businessmen, who were charging sales tax
from consumers without being registered with the board under the Sales Tax
The FBR clarification has further advised the Customers to ask for invoices/receipts having Sales Tax
Number (STRN) on the invoices/receipts on purchase of goods and services,said in press release issued by FBR here on Thursday.
It is further clarified that a buyer is not required to provide his NIC in case of purchases from a person not registered for sales tax
. It is also clarified that in case of purchase of third schedule items, which are subject to sales tax
on the basis of retail price and on which retail price along with sales tax
is legibly and indelibly printed or embossed, the sales tax
on the same is deposited by the manufacturer or importer.
IBC strongly condemns the imposition of 16% sales tax
on the services of lawyers in the Islamabad Capital Territory, the bar said in a statement on Monday.
Since 2011, there was no sales tax
applicable on these services.
The current sales tax
collection is in the range of Rs1.7 trillion and the government is looking for avenues to generate additional over Rs350 billion from sales tax
alone in fiscal year 2019-20.
Many businesses are only now coming to grips with a significant sales tax
law change that happened last summer.
Supreme Court ruled that states can't collect sales tax
from a business unless the business has a physical presence in their state.
February sales tax
collections were 0.6 percent, or $127,000, less than projected.