Sales Tax

Question 1

Temporary Registration

Answer 1

1. Where a manufacturer applies for registration without having installed machinery, temporary registration as manufacturer shall be allowed within 72 hours to him for a period of 60 days
   subject to furnishing of the complete list of machinery to be imported along with import
   documents.
2. After temporary registration, the person is allowed to import machinery, raw materials, etc. as a
   manufacturer but he will submit a post-dated cheque.
3. If the machinery is not installed within 60 days of issuance of the temporary registration, such
   temporary registration shall be disabled and the post-dated cheques submitted shall be encashed.
4. A person holding temporary registration shall file monthly return but shall not issue a sales tax invoice and if such invoice is issued, no input tax credit shall be admissible against such invoice.
5. No sales tax refund shall be paid to the person during the period of temporary registration and
   the amount of input tax may be carried forward to his returns for subsequent tax periods.

Question 2

Compulsory Registration

Answer 2

1. If a person, who is required to be registered, does not apply for registration, a notice shall be issued to such person, giving an opportunity of being heard. After receiving a written reply, and personal hearing if so desired by the person, the Commissioner shall pass an order whether or not such person is liable to compulsory registration.
2. Where the person does not respond within the time specified in the notice, the Commissioner
   shall transmit the particulars to computerized system, which shall compulsorily register the said
   person.
3. A compulsory registered person is required to comply with all the provisions of sales tax laws. In
   the case of failure to do so, the Commissioner may issue notice for production of records and appearance in person to assess the amount of sales tax payable and take any other legal action against such person.
4. If it is subsequently established that a person was not liable to be registered but was wrongly
   registered, computerized system on the recommendation of the Commissioner, shall cancel such
   registration and such person shall not be liable to pay any tax, default surcharge or penalty.

Question 3

Change in the particulars of Register

Answer 3

In case of a change in any particulars, the registered person shall notify the change within 14 days
and the computerized system shall issue the revised registration certificate. Where a person is unable to file application directly in computerized system, he may submit the application to the Commissioner RTO who shall ensure entry of the application in computerized system
within 3 days.

(2) The change of business category from non-manufacturer to a manufacturer shall be allowed after
fulfilling the requirements which are applicable for registration as a manufacturer such as verification of
machinery and confirmation of status as industrial consumer from electric and gas distribution companies.

Question 4

Transfer of Registeration

Answer 4

The registration may be transferred from one Commissioner to another or to LTU or RTO. If a registered
person intends to shift his business activities from the jurisdiction of one Commissioner to another or
has any other valid reason, he may apply for the transfer of his registration which is subject to the
approval by the sales tax department.

The Commissioner / RTO / LTU in whose jurisdiction the registration is now transferred shall exercise
the jurisdiction over such person in the manner as if it always had such jurisdiction.

Question 5

Option to file application with Commissioner

Answer 5

A person unable to file application for registration or change in particulars directly in computerized system, he may submit data to commissioner, who shall ensure entries in system within 3 days

Question 6

Option to file application with Commissioner

Answer 6

A person unable to file application for registration or change in particulars directly in computerized system, he may submit data to commissioner, who shall ensure entries in system within 3 days

Question 7

Cancellation of multiple registrations

Answer 7

In case of multiple registrations, the registered person shall retain only one registration and surrender
all other registrations.

The FBR may, in special cases, allow multiple registrations of manufacturing units located in different LTU or RTO.