ISLAMABAD: Federal Board of Revenue (FBR) has decided to impose penalty of Rs5000 on registered persons over their failure to obtain CNIC information of buyers.
Sources in the FBR said that as per updated Sales Tax Act, 1990 up to December 31, 2019 any person who fails to issue an invoice when required under this Act, then such person shall pay a penalty of Rs5000 or three percent of the amount of the tax involved, whichever is higher.
The penal amount has been specified for Section 23 of the Sales Tax Act, 1990, which mainly deals with tax invoices issued by registered persons, who are also liable to obtain information of Computerized National Identity Card (CNIC) of buyers on sales above Rs50,000.
The mandatory condition of obtaining CNIC information of unregistered persons has been applicable from February 01, 2020, which was to be applied from August 01, 2019.
As per the updated Sales Tax Act, 1990, the section said:
- Tax Invoices.– (1) A registered person making a taxable supply shall issue a serially numbered tax invoice at the time of supply of goods containing the following particulars, in Urdu or English language, namely:
(a) name, address and registration number of the supplier;
(b) name, address and registration, number of the recipient and NIC or NTN of the unregistered person, as the case may be, excluding supplies made by a retailer where the transaction value inclusive of sales tax amount does not exceed rupees fifty thousand, if sale is being made to an ordinary consumer.
Explanation. – For the purpose of this clause, ordinary consumer means a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing:
Provided that the condition of NIC or NTN shall be effective from 1st August, 2019;
(c) date of issue of invoice;
(d) description including count, denier and construction in case of textile yarn and fabric, and quantity of goods;
(e) value exclusive of tax;
(f) amount of sales tax; and
(g) value inclusive of tax:
Provided that the Board may, by notification in the official Gazette, specify such modified invoices for different persons or classes of persons; Provided further that not more than one tax invoice shall be issued for a taxable supply.
