ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday set a deadline of Aug 15 for all tier-1 retailers to get integrated with the Point-of-Sale (POS) system otherwise they would be denied credit for input tax equal to 60 per cent of claimed in the sales tax return for July.
The FBR has issued a Sales Tax General Order no.1 of 2022 by which a system-based approach is being adopted to integrate tier-1 retailers with POS effective this month.
The board has also released a list of 6,763 outlets on a regional basis, which do not exists on the POS system.
“If a tier-1 retailer feels that it is not a tier-1 retailer in terms of Section 2(43A) of Sales Tax Act, 1990, it may get itself excluded from the list by applying to the commissioner by Aug 10,” the order added.
As per procedure, a list of all identified tier-1 will be placed on FBR’s web portal by 5th of very calendar month allowing them to integrate with FBR system by 10th of the month.
The list shall be updated every month and taxpayers who remain in the list shall be considered as non-integrated tier-1 retailers and their input tax to the extent of 60pc shall be disallowed as per the provisions of sub-section (9A) of Section 3 of the Sales Tax Act, 1990, it elaborated.
Published in Dawn, August 4th, 2021