Sales Tax Online Registration

Sales Tax Online Registration

FBR has introduced new procedure for Sales Tax Online Registration in Pakistan which is a simplified and voluntary process to register for sales tax in Pakistan.

How to do Sales Tax Online Registration

In order to register for sales tax simply login to https://iris.fbr.gov.pk/public/txplogin.xhtml with your login details already provided to you by the FBR. If you don’t have the login credentials then register yourself for NTN first on the same link  https://iris.fbr.gov.pk/public/txplogin.xhtml.

After logging into https://iris.fbr.gov.pk/public/txplogin.xhtml click on Registration on top left and click on “14(1) (Form of registration filed voluntarily through simplified) (Sales Tax)”.

After clicking the (Form of registration filed voluntarily through simplified) (Sales Tax) provide with period and fill in the necessary details in the respective fields like Information, Bank Account, Business, Utility, Attachment, Property Address etc and submit it.

Information Required For Registration

Following information/ documents are required for Sales Tax Online registration: –

  1. Complete business name
  2. Business nature, main /activity or service;
  3. Complete address of Head Office and all business units, go downs, outlets mentioning, phone, fax, e- mail, electricity, gas consumer no. etc.
  4. All Bank account numbers, with name and address.
  5. NTN(National Tax Number)
  6. NIC (National Identity Card Number) of the owner, partners or directors of the business (passport number in case of foreigner).
  7. In case of a company, registration number and date of incorporation.
  8. Every director / member of AOP has to fill in the Form.
  9. Date of commencement of business and initial capital employed.
  10. The mode of maintenances of business records should also be mentioned.

Sales Tax Registration basics

The first step before filing your Sales Tax Return is to get yourself registered with Federal Board of Revenue (FBR).

The registration with FBR provides you with a Sales Tax Registration Number (STRN) or User ID and password. These credentials allow access to efile portal, the online portal for filing Sales Tax Return.

Online Sales Tax Return can only be filed while logging into efile portal.

Persons to be Registered for Sales Tax

  1. All importers
  2. All wholesalers (including dealers) and distributors
  3. Manufacturers not falling in cottage industry. {Cottage industry means a manufacturer whose annual turnover from taxable supplies made in any tax period during the last twelve months ending any tax period does not exceed [ten] million rupees or whose annual utility (electricity, gas and telephone) bills during the last twelve months ending any tax period do not exceed [eight] hundred thousand rupees;}
  4. Retailers (Tier-1 retailers means:
    1. A retailer operating as a unit of a national or international chain of stores;
    2. A retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks;
    3. A retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rupees six hundred thousand; and
    4. A wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers;)
  5. A person required under any Provincial or Federal Law to be registered for purpose of any duty or tax collected or paid as if it were a levy of sales tax, e.g. service providers like hotels, clubs, caterers, customs agents, ship chandlers, stevedores, courier services etc.
  6. Persons making zero-rated supplies, including commercial exporter who intends to obtain sales tax refund against his zero rated supplies.
  7. A person who is required to be registered by virtue of aforesaid criteria, but still avoids registration, can be compulsorily registered by the department, after proper enquiry, under sub- rule 1 of Rule 6 of Sales Tax Rules, 2006.

Place of registration

A corporate person (listed/unlisted public company, private limited company) has to be registered under the Regional Tax Office (RTO).

In case of non-corporate person having single manufacturing unit and the same is located in a different place than the business premises, in the RTO having jurisdiction over the manufacturing unit. A corporate person has the option of transferring his registration to the place of business.

Automated system for sales tax registration to be effective from July 1: FBR

Procedure for Registration

The application may be submitted electronically on efile portal in RTO. All the columns of the Forms have to be duly filled in as per instructions given with the Form.

After verification, the Regional Tax Office will issue a registration Certificate bearing registration number and mail the same to the registered Person, on a prescribed Form.

Office normally verifies the contents from the data available with it, but has an authority to get an enquiry conducted through Registration Office, to verify contents of declaration by a person. The office may reject the application with in fifteen days from the date; the complete application is received in office, under intimation to the applicant, specifying the reasons for such rejection.

Sales Tax with e-filing Training in Lahore

Information required for Registration

  1. Complete business name
  2. Business nature, main /activity or service;
  3. Complete address of Head Office and all business units, go downs, outlets mentioning, phone, fax, e- mail, electricity, gas consumer no. etc.
  4. All Bank account numbers, with name and address.
  5. NTN(National Tax Number)
  6. NIC (National Identity Card Number) of the owner, partners or directors of the business (passport number in case of foreigner).
  7. In case of a company, registration number and date of incorporation.
  8. Every director / member of AOP has to fill in the Form.
  9. Date of commencement of business and initial capital employed.
  10. The mode of maintenances of business records should also be mentioned.

Change in Particulars of Registration

In case there is a change in the name address, or other particulars as stated in the registration certificate, the registered person shall notify the change in the prescribed form to the RTO within fourteen days of such change.

The change in the business category shall be allowed after RTO has verified the manufacturing facility and confirmed the status as industrial consumer of the electricity and gas distribution companies.

Transfer of Registration

In case a registered person intends to shift his business activity from the jurisdiction of one RTO/LTU, to another RTO/LTU, or as the case may be to an RTO or LTU, or he has any other valid reason for such transfer, he shall apply to the RTO for transfer of his registration.

The RTO may subject to such conditions, limitations or restrictions as it may deem fit to impose, by an order , transfer the registration of a registered person from the jurisdiction of one RTO/LTU, to another RTO/LTU, or as the case may be to the LTU or RTO.

The return for the tax period in which the registration is transferred shall be filed in the RTO/LTU from where the registration is transferred.

Revised Registration Certificate

In case of multiple registrations, the registered person shall apply to RTO/LTU for single registration to the RTO/LTU which after ascertaining tax liabilities from concerned RTO/LTU shall issue revised registration certificate in which previous registration number shall be merged.

Deregistration from sales tax

To deregister a person shall submit an application to Commissioner Inland Revenue having appropriate jurisdiction. Within ninety days from the date of such application or the date all the dues outstanding against such person are deposited by the person, whichever is later shall cause the person to be de-registered through the computerized system.

Following persons can be deregistered:

  • Who ceases to carry on the business, or
  • Whose supplies become exempt from Sales Tax, or whose turnover becomes less than the threshold level can apply for cancellation of the registration

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