sale tax 21

Question 1

“nil return”

Answer 1

is a return indicating that no sales tax is payable by the registered person for the tax period;

Question 2

“residual input tax”

Answer 2

is the tax paid on raw materials, components and capital goods used for making both taxable as well as exempt supplies. It does not include the input on raw materials used only for making taxable or exempt supplies:

Question 3

Requirement of registration:

Answer 3

The following persons making taxable supplies in Pakistan (including zero-rated supplies) are required to be registered:-
(1) a manufacturer who is not running a cottage industry.

(2) a retailer who is liable to pay sales tax except such retailer required to pay sales tax through his electricity bill;

(3) an importer,

(4) a wholesaler (including dealer) and distributor,

(5) a person required, under any other Federal or Provincial law, to be registered for tax collection
as if it were a levy of sales tax; and
(6) a commercial exporter who intends to obtain sales tax refund for his zero-rated supplies.

Question 4

HOW APPLY FOR REGISTRATION?

Answer 4

A person required to be registered shall apply on computerized system for it through owner, member or partner or autharized director.

Question 5

WHICH RTO?

Answer 5

REGINAL TAX OFFICE

Question 6

a)Area where registration required in case of listed or unlisted public limited company

Answer 6

the place where the registered office is located

Question 7

b) in case of other companies

Answer 7

(i) if the company is engaged in manufacture or processing, the place where factory is situated,
(ii) if the company is engaged in business other than manufacture or processing, the place where main business activities are carried on;

Question 8

c) in case of a person not incorporated

Answer 8

the jurisdiction where business is actually carried on

Question 9

d) in case of a person not incorporated, having a single manufacturing unit and whose located business premises and manufacturing unit are in different location

Answer 9

the jurisdiction where the manufacturing unit is

Question 10

The jurisdiction of Large Taxpayers Units shall be specified ?

Answer 10

by the Board

Question 11

who may transfer registration?

Answer 11

FBR may transfer registration where place of business or registered office or manufacturing unit is located

Question 12

The applicant having NTN or income tax registration shall, using his login credentials, upload what information and documents:?

Answer 12

The applicant having NTN or income tax registration shall, using his login credentials, upload following information and documents:
1. bank account certificate issued by the bank in the name of the business;
2. registration or consumer number with the gas and electricity supplier,

3 particulars of all branches in case of multiple branches at various locations;

4 GPS-tagged photographs of the business premises; and

5 in case of manufacturer, also the GPS tagged photographs of machinery and industrial electricity or gas meter installed.

Question 13

when applicant register in sale tax

Answer 13

On furnishing above documents, the system shall register the applicant for sales tax.

Question 14

after registration in sale tax?

Answer 14

After registration, the applicant or his authorised person shall visit e-Sahulat Centre of NADRA within a month for bio metric verification. In case of failure, the name shall be taken off the sales tax Active Taxpayer List.

Question 15

In case of manufacture,

Answer 15

In case of manufacture, the Board may require post verification through field offices or a third party.

Question 16

In case the field office,

Answer 16

finds that any document provided is non genuine or fake or wrong, it may request through the system, to provide the missing document, in 15 days.

Question 17

In case of failure

Answer 17

the registered person shall be taken off from the sales Active Taxpayer List.

Question 18

WHEN TEMPORARY REGISTRATION ALLOWED?

Answer 18

Where a manufacturer files application for sales tax registration as a manufacturer without installing machinery (for the purpose of import) temporary registration shall be allowed to him for a period of 60 days if he furnishes complete list of machinery to be imported along with Bill of Lading or Goods Declaration

Question 19

on which system and time temporary registration issued

Answer 19

The temporary registration shall be issued by the computerized system within 72 hours of filing of the
complete application.

Question 20

when person import plant &machinery

Answer 20

The person shall now import plant, machinery and raw materials, etc. as a manufacturer, if he submits to the customs authorities a post-dated cheque of taxes.

Question 21

If list of machinery installed is not submitted within 60 days of temporary registration,?

Answer 21

If list of machinery installed is not submitted within 60 days of temporary registration, such temporary

registration shall be disabled and the post-dated cheques shall be encashed.

Question 22

A person holding temporary registration shall file ?

Answer 22

A person holding temporary registration shall file monthly return, but shall not issue a sales tax sales invoice

Question 23

if such invoice is issued,?

Answer 23

if such invoice is issued, no input tax shall be admissible to his buyers. No sales tax refund shall be paid during the period of temporary registration and input may be carried forward to his returns for subsequent tax periods

Question 24

IN Compulsory registration the Commissioner may issue a notice to such
person?

Answer 24

If a person required to be registered does not apply for it, the Commissioner may issue a notice to such
person

Question 25

If Commissioner receives a reply from the person,?

Answer 25

If Commissioner receives a reply from the person, contesting his liability to be registered, he shall

personally hear the case. Then, he may pass an order for compulsory registration.

Question 26

Copy of order SENT TO

Answer 26

Copy of order shall be
provided to that person. The order shall be entered in computerized system.

Question 27

If a person does not respond to the notice,

Answer 27

If a person does not respond to the notice, Commissioner shall compulsorily register through computerized system and will inform him through courier service

Question 28

A compulsorily registered person will comply with all provisions of Act. If he fails to do so,

Answer 28

A compulsorily registered person will comply with all provisions of Act. If he fails to do so,

the Commissioner may

1 issue notice for production of records and

2 require him to appear in person

to assess the sales tax

Question 29

If later on it is found that a person was not liable to be registered ?

Answer 29

If later on it is found that a person was not liable to be registered but wrongly registered due to error the Commissioner shall cancel the registration through computerized system. Now he shall not pay any tax, default surcharge or penalty. However he will only pay excess tax collected

Question 30

In case of change in the name, address or other particulars in registration certificate, the person shall notify

Answer 30

it in computerized system in 14 days of change.

Question 31

The change as ‘manufacturer shall be allowed

Answer 31

The change as ‘manufacturer shall be allowed if all conditions in Rule 5 are fulfilled.

Question 32

If change is approved,

Answer 32

If change is approved, computerized system will issue revised registration certificate. The effective date shall be the date the person applied for change.

Question 33

The Commissioner may based on available information?

Answer 33

The Commissioner may based on available information, after inquiry make modifications in the registration