Sunday , November 29 2020
Breaking News
Home / Islamabad / FBR may make mandatory specifying one ‘identifier’ for businessmen

FBR may make mandatory specifying one ‘identifier’ for businessmen

ISLAMABAD: The Federal Board of Revenue (FBR) has proposed mandatory requirement for business community in budget (2014-15) to specify at least one identifier i.e Sales Tax Registration Number (STRN), National Tax Number (NTN) or computerised national identity card number (CNIC) on all sales tax invoices within supply chain.

As per details, it is being the key documentation measure to be introduced on the sales tax in budget (2014-15). Along with gradual implementation of electronic sales tax invoicing in budget (2014-15), the government is also considering mandatory requirement for all sales tax invoices to have at least one identifier i.e STRN, NTN or CNIC.

It will be the biggest policy measure and reform initiative to expand sales tax net through registration of buyers within the supply chain of importers, exporters and manufacturers etc.

In the past, the FBR has made several attempts to obtain particulars of unregistered buyers within the supply chain. The basic particulars like STRN, NTN or CNIC was requirement for sales tax registered persons in the past, but the government had withdrawn the decision. Similarly, the mandatory requirement of basic particulars of buyers on the income tax side was also withdrawn in the past due to strong resistance. Practically, buyers and un-registered persons were not ready to disclose even basic identification like CNIC.

The board had rescinded SRO821(I)/2011, which had given free hand to importers, exporters and manufacturers for not disclosing the computerised national identity card numbers (CNICs) and National Tax Number (NTNs) of their unregistered buyers. The FBR had also issued SRO 880(I)/2012 and SRO 879(I)/2012 to rescind SRO821(I)/2011 and SRO 191(I)/2011 to take away the documentation measure to increase the number of sales tax registered persons.

According to experts, to reduce risk of claiming inadmissible input tax, the use of electronic invoicing should be promoted in compliance with chapter XIV of the Sales Tax Rules, 2006. The invoices issued by the supplier should be transmitted electronically to the buyer and FBR simultaneously.

 

 

computerised national identity card number (CNIC) FBR Islamabad Region National Tax Number (NTN) sales tax invoices Sales Tax Registration Number (STRN) Taxation 2014-05-26
Exit mobile version