Documentation of economy: FBR notifies to show CNIC for purchases over 50,000 PKR

0
  • FBR mandated for ordinary citizens to show their CNIC in case they make a purchase over 50,000 PKR.
  • Delivery of an identity card does not mean that the buyer is also a sales tax registered person.
  • The current number of sales tax registered persons is 41484 who are paying certain taxes along with the details; FBR.
  • Section 23 of the Sales Tax Act 1990 has been amended.

FBR_Purchases_over_50,000

Federal Board of Revenue issued notification mandating for ordinary citizens to show their CNIC in case they purchase over 50,000 PKR from a registered sales tax seller. In case the buyer is female then the national identity card of her father or husband will be considered as valid for the purchase.

The purpose behind mandating to produce CNIC is the documentation of business-related transactions adding that the condition will help avoid unverifiable and fictitious business buyers that causes huge sales tax losses in the value chain.

Provision of CNIC number does not mean that the buyer has to be a registered person under sales tax law as sales to the unregistered people can be made as well.

“Delivery of an identity card does not mean that the buyer is also a sales tax registered person,”  FBR said.

 

FBR says the current number of sales tax registered persons is 41484 who are paying certain taxes along with the details. Under the current amendment, the purchase of a sales tax registered person will require the availability of an identity card at the buyer’s limited opportunity.

“FBR issues sales tax circular Under the Finance Act 2019, a limited number of transactions will require a National Identification Card number. Section 23 of the Sales Tax Act 1990 has been amended,” FBR statement read.

In an earlier movie, the bureau warned off strict action to be taken against under-invoicing and asked businesses to stay away from smuggled goods.

Also See: FBR Warns Of Punitive Action Against Under-Invoicing And Smuggled Goods

FBR has made certain clarifications in this regard as well for instance if buyer produced fake CNIC then the penalty will not arise against the seller, provided that the sale was made in good faith adding that no action will be taken against the seller if any error is identified subsequently on the condition that transaction was made in good faith.

Do you think that amendment in the laws for documenting the economy will work without getting away with the structural flaws in FBR itself? Let us know in the comment section

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept