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Sales Tax Registration:
Click here for sales tax registration Registration Form (STR-1) for fresh registration and change in particulars New Sales Tax-cum-Federal Excise Return For All Tax Payers
Click here to Download ST /FE Returns FY 2011-12 (FAQs) (Click here to download) 1 Deregistration Form (STR-3) (Click here to download)
2
Registration Form (STR-1) for fresh registration and change in
particulars
Important NoticeClick here to Download
Federal Excise SROs Click here for federal excise SROs Sales Tax Guide:
Click here to DOWNLOAD
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For further information or query please
contact
(051) 111-772-772
OVERVIEW
Sales Tax was a
provincial subject at the time of partition. It was being
administered in the provinces of Punjab & Sindh as provincial levy.
Sales tax was declared a federal subject in 1948 through the
enactment of General Sales Tax Act, 1948 and in 1952, this levy was
transferred permanently to the Central Government. Sales tax was
levied at the standard rate of 6 pies per rupee at every stage
whenever a sale was effected. The trading community protested
against this system, and this resulted in the enactment of Sales Tax
Act 1951.
A system of licensed manufacturers & wholesalers was instituted
whereby they were allowed to purchase goods free of sales tax from
each other and pay tax on sales to unlicensed traders. Imports were
chargeable to Sales Tax but the licensed manufacturers & wholesalers
were allowed to import goods without the payment of Sales Tax. Later
on Sales Tax became chargeable on locally produced & imported goods
at the time of their sales & import, respectively. The sales tax,
was collected under the Finance Ordinance, 1956, on goods which were
chargeable to Central Excise Duty, as if it were a duty of Central
Excise. In April 1981, by virtue of an amendment in the Sales Tax
act, 1951, the collection of Sales Tax on non-excisable goods was
also entrusted to the Central Excise Department.
In the late eighties the government decided to replace Sales Tax
with the Value Added Tax in the country as a part of its structural
adjustment program which was undertaken to correct anomalies &
distortions both in our tax & non-tax regimes. Accordingly new
enactment titled Sales Tax Act 1990 replaced Sales Tax Act 1951 with
effect from 1-11-1990.
Liability to Sales Tax
Following sectors are required to get registration for sales tax and charge sales tax on their supplies/ services:
-
Manufacturing
-
Import
-
Services
-
Distribution, Wholesale & Retail stage.
Previously it was
being charged at the manufacturing & import stage, and its scope has
been extended now to remaining sectors.
Sales Tax is chargeable on all locally produced and imported goods
except computer software, poultry feeds, medicines and unprocessed
agricultural produce of Pakistan and other goods specified in Sixth
Schedule to The Sales Tax Act, 1990.
REGISTRATION
Every person in
sectors mentioned above, who makes a taxable supply in Pakistan is
required to be registered under the Sales Tax Act. However,
manufacturers having taxable turnover below five million rupees and
also utility bill below Rs. Seven lac during the last twelve months
are exempted from registration and payment of sales tax. Similar
exemption is also available to retailers having total turnover below Rs. five million in the last twelve months.
The rate for sales tax is 16% of value of supplies. However, there
are some items which are chargeable to sales tax at 18.5% or 21% of
value of supplies (see SRO 644(I)/2007 as amended by SRO 537(I)/2008
dated 11th June 2008)
The Registration Form(s) are submitted to the Central Registration
Office, FBR, or Sales Tax Collectorates/ RTOs for the allotment of a
Registration Number by the persons liable to be registered under the
Sales Tax Act. The taxpayer is then issued a Certificate of
Registration.
RETURNS
As per law each
registered person must file a return by the 15th of each month
regarding the sales made in the last month.
All registered persons are required to file returns electronically
and in such cases the payment is to be made by the 15th and return
can be submitted on FBR’s e-portal by 18th.
Detailed procedure in this respect is given in Sales Tax General
Order no. 04 of 2007.
There are some sectors which are required to file returns on
quarterly (tri-monthly) basis e.g. retailers including dealers of
specified electric goods and CNG dealers.
MAINTENANCE OF RECORDS
All registered persons are required to maintain records at their business premises of the goods purchased and supplied made by them. All the records are required to be kept for a period of 5 years.
REFUNDS OF SALES TAX
In cases where the Input Tax exceeds the Output Tax due from the registered person in respect of a tax period because of exports or other zero-rated supplies, the excess amount of input is refunded back to the taxpayer within 45 days. In all other cases of excess input tax, the Board can specify the procedure for refund.
ADDITIONAL TAX
If a registered
person does not pay the tax within the specified time or claims a
tax credit or refund which is not admissible to him, or incorrectly
applies the rate of zero percent to the supplies made by him, he has
to pay the additional tad at the following rates:
One and half percent of tax due or the part thereof per moth;
However, in case of tax fraud, the rate of additional tax shall be
two percent per month.
ARREARS
The work regarding Arrears gets initiated in the following cases:
- Late or no submission of the Returns
- Amount paid is less than the tax amount payable
-
A demand raised after an audit/ scrutiny is upheld after ad
Source: www.fbr.gov.pk
Sales Tax Registration Procedure in Pakistan
The Federal Board of Revenue, Pakistan (FBR) has
simplified sales tax registration and deregistration procedure. For
this purpose, a prospective taxpayer has been given the option to
apply for registration directly to the Central Registration Office (CRO)
at Federal Board of Revenue. This will ensure swift registration
process by eliminating the step of filing application in the Local
Registration Office (LRO) or the Collectorate. Any prospective
taxpayer can apply on a registration form to the local registration
office. Previous requirements of furnishing supporting documents
have been done away with.
· Sales Tax is levied at various stages of economic activity at the
rate of 15 per
cent on.
· All goods imported into Pakistan to be paid by the importers.
· All supplies made in Pakistan by a registered person in the course of furtherance of any business approved on by him.
·
There is an in-built system of input tax adjustment and a registered
person be capable of make adjustment of tax paid at earlier stages
against the tax payable by him on his supplies. Thus the tax paid at
any stage does not go above 15% of the total sales price of the
supplies.
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