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  • Aug 3rd, 2007
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The Federal Board of Revenue (FBR) has issued a combined sales tax and federal excise return for all categories of taxpayers. Sources told Business Recorder on Thursday that the board has combined 10 different returns into a single return form which would be applicable for depositing payment of July 2007 in August through the new return.

Following abolition of a number of special procedures, a single monthly sales tax return form has been notified. Some additional information including details of 20 local suppliers has been demanded in certain cases.

The board would also launch a new e-filing module by first week of August for all corporate entities to file return electronically. The system could be run on any operating system and taxpayers will simply fill the web-based return form, sources said. Sources added that the board would shortly issue new income tax return form as well.

The board has also issued instructions to guide the taxpayers for accurate filling of the sales tax-cum-federal excise return form. According to the directive issued to the regional collectorates, the return form provided on FBR website can be used for manual filing. The taxpayer should also manually calculate the data and reconcile with the ones used in the given worksheet and correct where required. The formulas have been provided for assistance only.

The registered person having the status of 'individual' or 'proprietor' is required to mention his Computerised National Identity Card (CNIC) number. In all other cases this information can be skipped. While filing the revised return, the taxpayer shall tick the relevant box and fill in all the relevant data for the month including the columns which were correctly filled in the normal return.

All registered persons are required to file return on monthly basis, except persons engaged exclusively in commercial imports, who shall file the same return on quarterly basis, it said.

Explaining the new form, the directive specifies that the details of top 20 local suppliers pertaining to tax charged are to be provided in descending order. After providing the details for top 19 suppliers, the total for the remaining suppliers is to be provided. If a single supplier is making supplies at multiple rates of sales tax, the supplies at each rate are to be provided in separate rows.

In case there are no taxable sales to registered persons and the total number of suppliers does not exceed nineteen, the registered person shall not be required to furnish separate invoice summary as prescribed under SRO 559(I)/2006.

The information of all purchases (goods/services) subject to tax at 15 percent, 17.5 percent and 20 percent would be specified on the form after adjustment on account of debit/ credit notes.

The electricity distribution companies shall mention the units supplied to steel sector as covered under the Sales Tax Special Procedures Rules, 2007, on which sales tax is payable at the rate of Rs 4.75 per unit.

As per instructions, the adjustment of sales tax on each fixed asset has to be spread over twelve months. 'Accumulated amount' is the total value of fixed assets against which adjustment has not been completely made.

About inadmissible input tax relating to exempt supplies/non-taxed services etc, the input tax which is attributed to exempt supplies or to non-taxable services is to be mentioned. Any other input tax which is not admissible as credit is also to be included. If any part of input tax relates to both taxable and exempt supplies or services, inadmissible input tax is to be calculated in accordance with the Apportionment Rules as in the Sales Tax Rules. The commercial importer shall provide the value and sales tax charged on all invoices issued by him. In case the sales tax charged exceeds the amount paid on the same goods at import stage, the differential amount has to be mentioned in space provided, directive said.

Where the registered person, other than a commercial importer, is allowed to issue invoices showing amount of sales tax but the actual tax liability has already been discharged, such as in case of steel sector, the registered person shall provide the value and sales tax charged on all invoices issued by him. This detail is for information only and does not add to the tax payable with the return, it added.

The registered person should tick the relevant box and calculate net liability and the amount of tax to be carried forward in accordance with the formulas provided. If a registered person is also withholding sales tax under SRO 660(I)/2007, he shall mention the tax deducted during the tax period from the amounts payable to suppliers.

For excisable goods cleared for domestic consumption, space has been provided for five types of excisable goods. If such goods are more than five, then top four in terms of highest duty payable should be specified and the rest should be clubbed and mentioned against the heading description 'others'.

Excisable services on which FED is being charged (not in VAT mode) are to be mentioned here; such as international air travel and services chargeable to FED at 5 percent ie insurance, non-fund banking services, franchise services etc. All clearances of exempt excisable goods as in the Third Schedule or under any notification should be mentioned on the form.

The credit of FED paid on inputs consumed in excisable goods supplied during the tax period will be availed by mentioning the same. This value has to be less than excise duty payable on finished goods supplied. It would be greater only in case where the rate of excise duty on inputs is higher. In such cases no refund of higher duty on inputs is admissible.

Instructions added that the break-up of tax being payable on the return is to be provided. If the taxpayer is dealing in more than one type of taxes he should provide the head-wise break-up of the total amount payable for the month ie the amount mentioned in the column "Total Taxes Payable (Net ST Payable + Net FED Payable + PDL)".

The amount falling in FED and PDL can easily be determined. However, the problem may arise while providing break-up of sales tax, provincial sales tax and FED payable in VAT mode because of common inputs involved. In case the registered person is not conveniently able to determine such break-up, then the total payable amount for such heads can be apportioned on the basis of value of supplies/ services relating to a particular head of account.

Copyright Business Recorder, 2007

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