Big retail units shall remain sealed until they integrate with the online system of the Federal Board of Revenue Pakistan for sharing of sales and purchases.
It has been made mandatory for the big retail units to integrate their outlets with the FBR under the sales tax act 1990.
Those retailers would be facing punitive actions as per the statute who failed to integrate with the FBR.
Finance Act, 2020 has made amendments related to penalty for non-compliance for linkage of sales and purchase data with the FBR.
As per the amendment made to the Sales Tax Act 1990,
Any person, who is required to integrate his business for monitoring, tracking, reporting or recording of sales, production and similar business transactions with the board or its computerized system, fails to get himself registered under the Act, and if registered, fails to integrate in the manner as required under the law.
Penalty for above-mentioned is as follows:
- A penalty of up to one million rupees
- In case of continuation of failure to integrate with the FBR, after a period of two months after the imposition of penalty as aforesaid, his business premises shall be sealed till such time he integrates his business in the manner as stipulated under sub-section (9A) of Section 3 or Section 40C, as the case may be.
All tier-1 retailers are required to integrate all their POSs with FBR’s computerized system.
Tier-1 retailer is defined in section 2(43A) of the Sales Tax Act, 1990, to be a person who falls in any of the following categories:
- A retailer operating in an air-conditioned shopping mall, plaza or center, excluding kiosks;
- A wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on a wholesale basis to the retailers as well as on a retail basis to the general body of the consumers
- A retailer operating as a unit of a national or international chain of stores;
- A retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rupees twelve hundred thousand;
- A retailer, whose shop measures one thousand square feet in area or more,
Extension in the date:
An extension has been made to the date for the integration of Point of Sales (POS) till August 31, 2020.
Previously, the last date to integrate the POS was June 30, 2020.
As per the FBR, only those retailers will be allowed to integrate their POS by August 31 who submit their intention to RTOs/LTUs by August 20, 2020.
FBR sources said that the decision had been taken due to lockdown in the many parts of the country in order to prevent the spread of coronavirus the business activities had become standstill.
The deadline had expired on December 15, 2019, which was given by the FBR to tier-1 retailers to integrate their POSs with the FBR online system. However, an extension was made in order to give the opportunity to big retailers to make compliance.