INP
\nLAHORE
\nThe Friends of Economic and Business Reforms (FEBR), has once again appealed the FBR to restrict the retailers to make their purchases only from sales tax registered persons for their income tax returns instead of binding the manufacturers for their sale only to registered suppliers and retailers.
\nThe condition of CNIC demanding from retailers is adding tensions for registered manufacturers leading to huge drop in their sale, grinding business activities to a halt.
\nFEBR President Kashif Anwar, in a letter to FBR Chairman Shabbar Zaidi, has reiterated his demand that the supplies shown by sales tax registered entities in their sales tax returns should be automatically shown as purchases are shown in the annual business income tax returns of those who are only registered in Income Tax. This will complete the supply chain from sales tax registered suppliers to the Income Tax registered purchasers, he added.
\n\u201cWith regard to purchases made by all retailers, suppliers, agents and others not registered in sales tax, we request that they may be enjoined to make purchases from sales tax registered persons for their businesses income tax returns.
\nAs in case of sales tax registered persons, all purchases are automatically shown in Annex-A (Domestic Purchase Invoices) & Annex-B (Imports) to avail the benefits of input sales tax, similarly the purchases made by retailers, individuals and others not registered in sales tax must be automatically shown in their annual income tax returns against their NTN\u2019s.\u201d
\nThe law has made it mandatory for every sales tax registered person either manufacturer, importer, dealer, distributor, wholesaler or retailer to mention sales tax registration number, national tax number or CNIC on sales tax invoice above Rs 50,000 value to feed Annex-C (Domestic Sales Invoices) of sales tax return which automatically verifies the particulars of buyers and compiles their record internally. If one does not provide NTN or CNIC, the proportionate input sales tax will be disallowed to registered person, he said.
\nOn the other hand, all the purchases of sales tax registered persons either local or imported are updated automatically to avail the benefit of input tax in their sales tax return and no purchase entry can be manual.
\nHe said the FEBR is not against documentation rather it propagates for the benefits of becoming filer. But, in order to avail full sales tax input against purchases in sales tax return, the condition of CNIC is creating problems for sales tax registered suppliers, and it goes without saying that all the legal formalities are for those who are in the tax net and who are more documented, he added.
\nHe said that the condition of mentioning STRN, NTN or CNIC to avail full amount of input tax is for sales tax registered suppliers. But how the chain of supplies from supplier to purchaser will complete when the retailer would not mention those particular purchases in their business income tax return? There is no doubt that retailers submit their business income tax returns and do mention the figure of their annual purchases against their turnovers but those purchase figures are not verifiable and have no supporting evidence in actual, he added.
\nHe said that the retailers normally hesitate to get sales tax invoice from registered suppliers. Mostly, there is no proof with retailers regarding the justification of their purchases which they mention in their annual business income tax returns.<\/p>\n","protected":false},"excerpt":{"rendered":"
INP LAHORE The Friends of Economic and Business Reforms (FEBR), has once again appealed the FBR to restrict the retailers to make their purchases only from sales tax registered persons for their income tax returns instead of binding the manufacturers for their sale only to registered suppliers and retailers. The condition of CNIC demanding from […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-97366","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n