Registration Flashcards
Requirement of registration (6)
Engaged in making taxable supplies:
i. A manufacturer not being a cottage industry
ii. A Tier I retailer;
iii. An importer
iv. A wholesaler, dealer, or distributor
v. An exporter who intends to obtain a sales tax refund against his zero-rated supplies
vi. A person who is required under any Federal or Provincial law to be registered for the purpose of any duty or tax collected or paid as if it were a sales tax under the
Act
Application for registration — rule 5 (3)
Person shall apply for registration:
- on the computerized system
- in prescribed form
- indicating jurisdiction of Regional Tax Office (RTO)
Criteria of indicating jurisdiction of RTO (6)
Hint: Public co. & Private co. & Un-incorporated person
In case of Public Company:
- the place where registered office is located.
In case of other than public company:
- if engaged in manufacture, where factory is situated
- if engaged in other than manufacturing, where main business activities are actually carried on.
- Not incorporated person, jurisdiction where business is carried on
- Not incorporated person with single manufacturing unit, with business premises and factory in diff locations: jurisdiction where manufacturing unit is located.
- FBR may transfer registration of any registered person to a jurisdiction where, business place or manufacturing unit is located.
Attachments to application (6)
Login into Iris portal and upload the following:
- Bank account certificate
- reg or consumer no. with gas.elec supplier
- particulars of ALL BRANCHES in case of multiple locations
- GPS- tagged photos of business premises
- GPS-tagged photos of P&M and Industrial Elec.gas meter (if manufacturer)
- Where unsold stock is held, declaration of such stock in a statement
Temporary registration procedue
- Manufacturer applies for registration without having installed machinery
- Temporary -registration for 60 DAYS shall be allowed within 72 hours
- Subject to furnishing:
- List of P&M to be imported
- import documents - After allowance: manufacturer is required to submit post dated cheque equal to difference in duties and taxes i.e 3% VAT (payable by Commercial Importer)
- If machinery is not installed within 60 DAYS
Temporary registration procedure (8)
- Manufacturer applies for registration without having installed machinery
- Temporary -registration for 60 DAYS shall be allowed within 72 hours
- Subject to furnishing:
- List of P&M to be imported
- import documents - After allowance: manufacturer is required to submit post dated cheque equal to difference in duties and taxes i.e 3% VAT (payable by Commercial Importer)
- If machinery is not installed within 60 DAYS, Temp registration shall be disabled and the cheque would be uncashed
- Person with Temp reg cannot issue Tax invoices (hence no input tax credit) but has to file sales tax return monthly.
- No ST refund shall be paid for period of temp reg, but input tax may be c/f to returns in subsequent periods
Compulsory registration Process (12)
- Person req to be registered does not apply for reg
- notice issued to him giving opp of being heard
- after written reply & personal hearing, CIR shall pass an order whether or not he is liable for compulsory reg.
- Where person doesn’t respond to notice within TIME SPECIFIED in NOTICE
- CIR shall transmit the particulars to computerized system and compulsorily register him
- COMPULSORY PERSON: required to comply with all provisions of sales tax laws.
- In case of failure of compliance, CIR may issue notice for
- production of records
- appear in person to assess the amt of sales tax payable
- any other legal action - If it is established that he was not liable to be registered and got wrongly registered, the computerized system shall cancel his reg on recommendation of CIR
- resulting in no liability for such person to pay tax, def surchrg, penalty
Change in the particulars, of registration Procedure (6)
- Reg Person notify the change within 14 DAYS
- computerized system shall issue revised registration certificate
- where person is unable to file directly on computerized system: he may submit application to CIR RTO who shall ensure the entry of application within 3 DAYS
- Change of BS category from non-manu to manu shall be allowed after fulfilling the reqs for manu registration
- like verification of machinery
- status of industrial elec.gas meter
Transfer of Registration (4)
- Reg may be transferred from one CIR to another or to LTU or RTO
- If person is shifting his business activities or any other valid reason
- He may apply for transfer of registration
- The new CIR/RTO/LTU shall exercise the jurisdiction over him in manner as if it always had such jurisdiction
Option to file an application with Commissioner
2 Circumstances in exceptional cases
- transfer of reg
- change in particulars
CIR will send such application to computerized system within 3 DAYS
Cancellation of multiple registrations (4)
In case of multiple registrations
- reg person must hold only one reg
- surrender all other registration
FBR may allow multiple reg if more than one manu units in diff LTU RTOs
De-registration PROCEDURE (9)
- Reg person, who ceases to carry on business/ whose supply becomes exempt
- shall apply to CIR for de-registration
- CIR in response to application/own initiative: recommend computer system to cancel registration
- Cancelled on later of:
- 90 days from application date
- Date all dues are cleared - CIR after satisfying himself shall direct application to discharge any outstanding liability by filing a final return
- Registered manu becoming cottage also applies for de-reg
- T-1 becoming non-T1 also applies for dereg
