Registered sales tax sellers are now required to retrieve buyer’s CNIC if the amount exceeds over Rs. 50,000 according to a new notification circulated by the Federal Board of Revenue.

Female buyers can use the CNICs of their husbands or father when making the transactions. The reason behind this new rule is to document all business to business transactions in order to identify transactions and their nature.

The FBR has also issued a clarification to provide details about the amendments made to the Sale Tax Act. The new amendments have been made mandatory for buyers to provide their CNIC on the transactions.

Reportedly, 41,484 sales tax registered individuals pay tax with returns. Furthermore, if a purchase involves a sales tax registered person, the CNIC number of the buyer will be necessary for some specific situations.

No Need to Plastic Wrap Luggage Anymore – CAA, After Strong Criticism from Public and Influencers

FBR also clarified that the allocation of the CNIC doesn’t mean that a buyer needs to be a registered person under the sales tax law. Sales can be made to the unregistered individuals as well.

The board clarified if under any circumstances the seller is given an incorrect ID, the individual will not be liable to any penalty. No action will be taken against the seller if the error is identified after the transaction was carried out in good faith.

In order for the FBR to take any action against a seller, they will require permission from the chief commissioner of the jurisdiction. For transactions over Rs. 5 million, the action will be taken only after the member of operation or a director-general approves it.

Stay tuned to Brandsynario.

World’s Most Admired People of 2019: PM Imran Khan & Malala Make it to the List!


Please enter your comment!
Please enter your name here