Services
Sales Tax Return Filing
Documents Required
As per the Sales Tax Act, applicable in Pakistan Every Registered person under the Sales Tax Act is required to file the Sales Tax Return for each tax period / Month within a due date.
Eligibility
Following persons are liable file their Sales Tax Return irrespective whether they are registered with Federal Board Revenue (FBR) or Not:
- A manufacturer, except one classified as a cottage industry
- An importer
- An exporter
- Every Wholesaler, Dealer, Distributor
- Person Making Zero Rated Supplies
- A Tier-1-Retailer (As defined in section 2(43A)- Tier-1 retailers)
- Any Other person who is registered under the Sales Tax Act.
Consequences
The above-mentioned persons are liable to file their Income Tax Return within due date. Failing to file the income tax return within due date the taxpayer will have to face the following consequences;
- Penalty of PKR 10,000, or 5% of the tax payable for the period during which the default continues.
- Disallowance of Input Tax Adjustment for purchases or business expenses made during the non-registration period.
- Restriction on Business Activity
- Imposition of Further Tax (certain conditions applied)
- FBR may initiate the recovery proceedings, including attachment of Bank account and property
- Restrictions on Imports and Exports.
Date of Filing
The due date for filing of monthly sales tax return under the Sales Tax Act, is on or before the 15th of each month following the tax period.
Documents Required
- Detail of Tax invoices issued I.e. Details of taxable and zero-rated supplies during the tax period.
- Detail of Tax invoices received i.e. details of purchases and imports, including input tax details.
- Bank Statements
- Stock Records
- Detail of Exports made during the period i.e. Details of zero-rated supplies, export-related documents such as GD (Goods Declaration) forms
- Utility Bills such as electricity and gas to verify business activity
- Any Additional Documents as required by the FBR, based on the nature of the business.
Disclaimer
The information available on this website is for general guidance only and does not constitute legal or professional advice. Decisions made based on this content are at your own risk, and we are not liable for any consequences. For specific advice, please contact at [email protected].