Amendment in the Sales Tax Rules, 2006

Government of Pakistan
Revenue Division
Federal Board of Revenue

Islamabad, the 17th April, 2025.

NOTIFICATION

S.R.O. 608 (I)/2025. - In exercise of the powers conferred by section 50 of the Sales Tax Act. 1990(VII of 1990). read with clause (37) of section 2, section 21, section 40B and section 40C thereof, the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in the Sales Tax Rules. 2006, namely:-

In the aforesaid Rules. -

(1) in rule 11, -

(a) in sub-rule (1),-

(i) for the words "or who ceases to remain registered shall apply to the Commissioner Inland Revenue having jurisdiction", the words "and he intend to get de-registered shall apply online on the computerized system" shall be substituted;

(ii) for the word "ninety", the word "sixty" shall be substituted, and for full stop at the end, a colon shall be substituted and thereafter a proviso shall be added, namely:-

Provided that registered person shall be barred to file Annex-C, Annex-D and the return after the date of online submission of application. No input tax adjustment or refund shall be admissible to the registered person during the currency of de-registration. And no input tax adjustment or refund shall be allowed to any other registered persons on the strength of invoices issued by such person, during the currency of de-registration.;

(b) for sub-rule (2), the following shall be substituted, namely:-

"(2) Where the Commissioner Inland Revenue desires to conduct any audit or inquiry of the applicant to determine his liability, he shall require the applicant, in writing, to provide the requisite records. The Commissioner on receipt of the complete requisite records and upon completion of any audit or inquiry which may have been initiated consequent upon the application of the registered person for de-registration, shall complete the proceedings or inquiry within ninety days from the date of application and direct the applicant to discharge any outstanding liability which may have been raised therein by filing a final return under section 28. On submission of final return and payment, if any entry to this effect shall be made in the

computerized system, which shall automatically de-register the applicant on expiry of ninety days thereof, subject to provisions of sub-rule (4).

Provided that adjournment be excluded but not later than ninety days.";

(c) in sub-rule (2A), for the words "by the Commissioner Inland Revenue having jurisdiction", the words "on the computerized system" shall be substituted; and

(d) sub-rule (2B) shall be omitted;

(2) in rule 12,-

(a) for the word "LTUs", the word "LTOs" shall be substituted;

(b) in clause (a),

(A) in sub-clause (i),-

(i) for the expression "tax fraud", the expression "tax fraud in terms of clause (37) of section 2 of the Act" shall be substituted;

(ii) in paragraph (A), for the expression "non-availability", the expression "non-existence" shall be substituted;

(iii) for paragraph (B),(C), (D), (E), and (F) the following shall be substituted, namely:-

"(B) refusal to allow access to business premises under section 40B and 40C or refusal to furnish records under section 25 and 37 of the Act to an authorized Inland Revenue Officer;

(C) activity becomes 5 time more than sum of the capital and liabilities declared in the balance sheet;

(D) making more than 10% purchases from or making 10% supplies to other suspended person in the month of suspension, except suspension based in terms of clause B or value of above Rs. 50 million or whichever is higher;

(E) non-filing of sales tax returns for three consecutive months and null filing of sales tax returns for six consecutive months;"

(F) committed any act which falls within the ambit of tax fraud;";

(iv) in paragraph (G), for the word "Commissioner", the word "Board" shall be substituted;

(B) in sub-clause (ii), for the word "LTUs", the word "LTOs" shall be substituted;

(C) in sub-clause(iii), for the word "six", the word "three" shall be substituted;

(D) in sub-clause (iv),-

(i) for the word "LTUs", the word "LTOs" shall be substituted;

(ii) in paragraph (C), after the words "record or premises", the words "under sections 40B and 40C" shall be inserted;

(iii) in paragraph (D), for the word "Commissioner", the word "Board" shall be substituted;

(E) in sub-clause (viii), for the word "LTUs", the word "LTOs" shall be substituted; and

(F) in sub-clause (ix), after the words "revoking of suspension of the registered person", the words "within thirty days of receipt of the reply to the notice" shall be inserted.

[C. No.3(2)ST&FE-Policy/2025]

(Izhar Zuberi)
Second Secretary (ST&FE Policy)