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Qanoon Digest

Amendment in Sales Tax Rules, 2006

SRO 1203(I)/2019Rules and amendments to rules

SRO 1203(I)/2019 is a Sales Tax SRO dated 10 October 2019, listed by FBR as "Amendment in Sales Tax Rules, 2006".

FBR publishes this SRO as scanned images, so the text below was transcribed by Qanoon Digest from the page images, with tables set out as tables. Check the official PDF before relying on any wording or figure.

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GOVERNMENT OF PAKISTAN
(REVENUE DIVISION)
FEDERAL BOARD OF REVENUE

Islamabad, the 10th October, 2019.

NOTIFICATION
(SALES TAX)

S.R.O. 1203 (I) /2019.- In exercise of the powers conferred by sub-section (1) of section 4, section 40 and section 45A of the Federal Excise Act, 2005, section 50 and sub-section (1) of section 71, read with sub-section (9A) of section 3, sub-section (7) of section 7, sub-section (2) of section 8, clause (ii) of sub-section (2) of section 8B, sections 9, 10, 14, 21 and 21A, clause (c) of sub-section (1) of section 22, first proviso to sub-section (1) of section 23, section 26, sections 28,33 and 40C, sub-section (6) of section 47A, sections 48, 50A, 52, 52A, 66 and 67A thereof, the Federal Board of Revenue is pleased to direct that in the Sales Tax Rules, 2006, the following further amendments shall be made, namely:-

In the said Rules,-

(1) in the preamble, after the word "with", the expression "sub-section (9A) of section 3," shall be inserted;

(2) in rule 14, in sub-rule (1), in the proviso, in the Table, in column (1),-

(a) for serial number 49 and entries relating thereto in columns (2) and (3), the following shall be substituted, namely: -
"49 Urea fertilizer M. Tons
49A DAP Fertilizer M. Tons
49B Other fertilizers M. Tons";

(b) after serial number 52 and entries relating thereto in columns (2) and (3), the following new entries shall be added, namely: -

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"53 Cane Molasses M. Tons
54 Ethanol M. Tons
55 Vegetable ghee M. Tons
56 Cooking Oil M. Tons
57 Edible oil M. Tons";

(3) in rule 18, in sub-rule (9), in the Table, after serial number 5, in column (1) and entries relating thereto in columns (2), (3) and (4), the following new serial number and entries relating thereto shall be added, namely: -
"6. Brick manufacturers (brick kilns paying tax under Tenth Schedule to the Act) (on quarterly basis) 15thday of the month following the end of quarter of the financial year 18thdayfollowing the 15thday as specified in column (3)";

(4) in rule 31, in sub-rule (4), after full-stop at the end, the following expression shall be added, namely: -

"Further, a claimant-wise bank advice duly signed by the signatory and co-signatory indicating the amount payable and the declared bank account of the claimant shall also be sent to the State Bank of Pakistan.";

(5) in rule 34, in clause (a), after the word "fertilizers", the expression ", cotton ginners" shall be inserted;

(6) in rule 39B, for sub-rule (2), the following shall be substituted, namely: -

"(2) The refund claims of aforesaid claimants for the tax periods prior to July, 2019 shall be processed in accordance with the provisions of Chapter V as were in force on the 30th June, 2019.";

(7) in rule 39C, for the word "ceiling", the expression "the lower of the two amounts, namely, the amount of input tax actually consumed in goods as exported or supplied at zero-rated rate, or the amount as per ceiling, if any," shall be inserted;

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(8) in rule 39G, after the words "relating to", the expression "transmission of bank advice to State Bank," shall be inserted;

(9) for rule 150ZB, the following shall be substituted, namely:-

"150ZB. Electronic Invoice System.-(1) The registered person specified in rule 150ZA, hereinafter referred to in this Chapter as specified registered person, shall install such fiscal electronic device and software, as approved by the Board, available on its website with complete technical instructions for installation, configuration and integration.

(2) The specified registered person shall register all his branches with the Board's computerized system, from which they make or intend to make supplies and shall also register each point of sale (POS) to activate the integration duly providing the following information, namely:-

(a) POS registration number;
(b) name of business;
(c) branch name;
(d) branch address;
(e) POS identification number; and
(f) registration date.

(3) The provisions of rules 150ZEB, 150ZEC and 150ZEG shall also apply to the sales made from each of the registered branches in respect of-

(a) recording of sales;
(b) components and features of electronic fiscal device (EFD);
(c) functionalities of POS;
(d) transmission of sale invoice data to the Board;
(e) printing and contents of sale invoice including printing of QR code and FBR fiscal invoice number thereon;
(f) population of transmitted data in Annex-C of the return of relevant month;
(g) bearing of cost of equipment and integration thereof;

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(h) display of FBR logo and the banner text;
(i) recording and transmission of online sales including those made through social media sites.
(j) accreditation of POS system; and
(k) reporting of failure of registered person to transfer sale data by the customer.";

(10) in Chapter XIV-AA, for the chapter title, the following be substituted, namely: -

"ONLINE INTEGRATION OF TIER-1 RETAILERS"

(11) for rule 150ZEA, the following shall be substituted, namely: -

"150ZEA. Application.-(1) The provisions of this Chapter shall apply to all Tier-1 retailers as defined in clause (43A) of section 2 of the Sales Tax Act, 1990.

(2) Commencing from the 1st December, 2019, all Tier-1 retailers shall integrate their retail outlets with Board's computerized system for real-time reporting of sales, in the mode and manner, as prescribed in this Chapter.

(3) The supplies as referred to in column (1), at serial number 66 of Table-1 of Eighth Schedule to the Act, of finished fabric and locally manufactured finished articles of textile and textile made-ups and leather and artificial leather shall be entitled to the reduced rate as prescribed in column (4) subject to conditions in column (5) there against. The retail supplies of these items shall be subject to standard rate as prescribed in sub-section (1) of section 3 of the Act, if they are made from retail outlets which are not integrated in the manner prescribed in this Chapter.";

(12) in rule 150ZEB,-

(a) in sub-rule (1), after the word "in", the expression "sub-rule (1) of" shall be inserted;

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(b) in sub-rule (2), the expression "from which they intend to sell the supplies subject to lower rate as specified in the said serial number 66" shall be omitted;

(c) sub-rule (3) shall be omitted;

(d) sub-rule (12) shall be omitted;

(e) for sub-rule (14), the following shall be substituted, namely: -

"(14) In case of supply of exempt items, the transactions thereof shall also be recorded and the invoice issued in the same manner. Such data shall also be communicated to the Board's Computerized System in the same manner.";

(f) in sub-rule (16), after the figure 66, the expression, ", if applicable," shall be inserted;

(g) for sub-rule (19), the following shall be substituted, namely: -

"(19) Sales made through social media portals shall also be treated as covered under this sub-rule if the same are recorded and transmitted through point of sale in real-time and provisions of sub-rules (5) and (6) are complied with.";

(13) for rule 150ZEF, the following shall be substituted, namely: -

"**150ZEF. Consequences of non-compliance or contravention.-**The integrated supplier who is found to have tampered with the system or made sales in the manner otherwise than as prescribed in this Chapter, or who contravenes any of the provisions of this Chapter, shall in accordance with sub-section (6) of section 8B of the Act no more be eligible for the reduced rate, if otherwise applicable, and his input tax shall also be reduced in terms of that sub-section (6) of section 8B. An appealable order to this effect shall be made by the Officer Inland Revenue having jurisdiction after giving an opportunity of being heard, besides imposing penalty as applicable and ordering recovery of tax amount due under the Act.";

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(14) in the form STR-7,-

(a) for the Table, occurring first, relating to the entries from Registry to CPR Nos, the following shall be substituted namely: -

"STR-7
[See rule 14(1)]

Government of Pakistan
Sales Tax & Federal Excise Return STRIVe 2019

Registry

NTN | Name | Tax Period (MMYY) | Normal | Revised | Submission Date
CNIC in case of Individual | COY/AOP/IND | Business Nature | Tax Office

Sales Tax Credits

Sr. Description Gross Value Taxable Value Sales Tax
1 Domestic Purchases from Registered Persons (excluding fixed assets) Annex-A & I - - -
2 Domestic Purchases from Unregistered Persons Annex-A & I -
3 Imports excluding fixed assets (includes value addition tax on commercial imports) Annex-B - - -
4 Capital Goods / Fixed Assets (Domestic Purchases & Imports) Annex-A, I & B - - -
5 Input for the month = (1 + 3 + 4) -
6 Credit brought forward from previous tax period -
6a Inadmissible input tax in terms of section 8(1)(m) for failure to provide NIC / NTN of unregistered buyer -
7 Non-creditable inputs (relating to exempt, non-taxed supplies of goods or services etc.) -
7a Inadmissible input tax credit in terms of section 7(2)(i) read with section 8(1)(l) of the Sales Tax Act, 1990 or disallowance of reduction in output tax in respect of withholding of sales tax/Credit Notes or disallowance of increase in input tax in respect of Debit Notes -
7b Allowance of input tax credit and reduction of output tax out of previous return's row 7c -
7c Balance of earlier disallowed input tax credit and disallowed reduction of output tax through row 7a -
8 Accumulated Credit = [5 + 6 + 7b - (6a + 7 + 7a)] -

Sales Tax Debits

Sr. Description Gross Value Taxable Value Sales Tax
9 Total Goods or Services supplied locally (Including Reduced Rate Sales) Annex-C & I - - -
10 Goods or Services supplied locally (at Reduced Rates) Annex-C & I - - -
11 Exports -
12 Supply of bricks (fixed rates) No. of kilns in each Region: 1. Rs. 12,500 [ ] -; 2. Rs. 10,000 [ ] -; 3. Rs. 7,500 [ ] - -
14 Gas supplied to CNG sector on notified / Notified Value Annex-C & I - -
14a Sales Tax portion of Sr.14 collected at 17% of value as in section 2(46)(a) [adjustable against input tax] -
14b Remaining Sales Tax portion of Sr. 14 (non-adjustable against input) = (14 - 14a) -
15 Output Tax = (9 + 13a + 14a) + 19 +20 -
16 Sales Tax deducted on supplies by withholding agent(s) Annex-C & I -
17 Accumulated Debit = (15 - 16) -
18 Sales Tax u/s 3(9) on electricity supplied to Retailers (non-Adjustable) -
19 Adjustment for Steel Sector units Annex-K -
20 Adjustment of Ship breaking units Annex-K -
21 Purchase of ginned cotton covered under SRO 1087(I)/2019 Annex-A - -
22 Sales Tax withheld on purchases as withholding agent Annex-A & I -
23 Sales Tax Arrears Including Principal, Default Surcharge & Penalty Annex-G -
23a Further Tax charged under section 3(1A) on supplies made to Unregistered Person (non adjustable)
23b Extra Tax collected under SRO 509(I)/2013 on sale of Electricity & Gas Annex-C & I -

Payable / Refundable

Sr. Description Sales Tax
24 Whether excluded from Section 8B(1) under SRO 1190(I)/2019 [ ] Select reason in case of "Yes"
25 Admissible Credit [if 24 = Yes then 8; if 24 = No, then {least of (8-4) or "90% of 15" or 17} + {if (8-4) < "90% of 15" then 4; otherwise zero}] -
26 Excess Unadjusted Credit [if 24 = Yes and 25 > 17 then (25 - 17); otherwise zero; if 24 = No then (8 - 25)] -
27 Credit Carried forward on account of Value Addition Tax Annex-F -
28 Unadjusted Credit Available for the purpose of refund = (26 - 27) -
29 Refund Claimed (Provide Stock Statement as in Annex-H. Can be submitted with return, or later as per rules) -
30 Credit to be carried forward [if 28 > 29, then [(28 - 29) + 27]; otherwise 27] -
31 Federal Excise Duty (FED) Drawback Annex-E -
32 Sales Tax Payable [if 17 > 25 then (17 - 25); otherwise zero] + [12+ 14b + 18+ 21 + 22 + 23+23a+23b] -
33 Federal Excise Duty (FED) Payable Annex-E -
34 Petroleum Levy (PL) Payable -
35 Total amount to be paid = (32 + 33 + 34) -
36 Tax paid on normal/previous return (applicable in case of revised return) -
37 Balance Tax Payable/ (Refundable) = (35 - 36) -
38 Select bank account for receipt of refund

Declaration

I, ______________________, holder of CNIC No. ______________________
in my capacity as authorized person do solemnly declare that to the best of my knowledge and belief the information given in this return is correct and complete in all respects in accordance with the provisions of applicable law.
Date: __________
Submitted electronically by using User-Id, Password and PIN as electronic signature

Head wise Payable

Head of Account Amount Head of Account Amount
B02341 - Sales Tax on Goods - B02485 - FED Excluding Natural Gas -
B02366 - Sales Tax on Services - B02501 - FED on Natural Gas -
B02367 - FED in VAT Mode - B03085 - Petroleum Levy -
Total Amount Paid (in figures) in words
CPR Nos. CPR-1, CPR-2, CPR-3, ...

";

and

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(b) in Annex-H, under the heading "Note",-

(i) for the expression "In column No.5, for example in case of yarn, count of yarn 20/s 100% cotton, 36/s PC etc and in case of fabric construction such as 2020/11060" the expression "Value and quantity of goods shall also include value and quantities of inputs purchased from unregistered persons" shall be substituted; and

(ii) for item m, the following shall be substituted, namely:-

"m. Same-state goods
n. Others (please specify)".

[No. 3(13)ST-L&P/2017]

(Muhammad Ali Khan)
Secretary (ST&FE-Policy)

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