According to a letter issued by the FBR, as provided in clause (b) of rule 150ZEE of the Sales Tax Rules, 2006, the eligible taxpayers intending to avail the benefit of reduced rate as provided in condition (xv) of SRO 1125(1)/2011 dated 31/12/2011 were required to register concerned Point of Sales (PoS) for subsequent data integration with FBR by 27/11/2018.
However, registered persons are approaching the Board with requests for extension in time period for getting their PoS registered, posting numerous reasons. Competent authority has, therefore, extended the said date till December 21, 2018.
Furthermore, the competent authority has also approved extension in time limit as provided in clause (c) of aforesaid rule and now the integrated suppliers have to upload the data of past supplies within two months of the registration as aforesaid, the FBR said.
It is accordingly requested that necessary steps may be taken to facilitate the concerned registered persons in getting their Point of Sales integrated with the online system of FBR. It is also requested that this update may be displayed prominently on FBR web portal, for public intimation of the extension as aforesaid, the FBR added.
The facility is available to supplies of finished fabric and locally manufactured finished articles of textile and textile made-ups and leather and artificial leather which are integrated with Board's online system for the purpose of availing lower rate of sales tax on supplies, the FBR said. The FBR will charge 9 percent sales tax (instead of 6 percent) on supplies of textile units, which will refuse to integrate with the FBR's online system by the deadline.
In view of the stipulations contained under condition (xv) of the SRO 1125(1)/2011, dated 31.12.2011 amended vide SRO 777(1)/2018, dated 21.06.2018, all those registered units falling under S. No.1 (vii) and S. No.3 of Table-2 of SRO 1125(1)/2011 shall be charged sales tax at 6% if they have tendered their consent for integration to the Board. If the registered persons who have tendered such consent and fail to integrate with the FBR online system as per mode and manner prescribed by the Board, they shall be liable to pay sales tax @ 9% with effect from July 1, 2018, FBR added. In budget (2018-19), a new condition (xv) has been inserted to provide sales tax at 6% instead of 9% on supplies covered under sub-serial (vii) of S. No.1 and S.No.3 of Table-2 for those registered persons who are integrated with FBR online system and data is transmitted to FBR Central database in near real time from such date, mode and manner as to be prescribed by the Board.