ISLAMABAD: With a view to forcing the pace of sales tax registration process in 2014, the Federal Board of Revenue (FBR) has launched a new risk-based sales tax registration system – “REGSYS” – which is likely to be notified on Monday (today).
Moreover, the Law Division has vetted the new rules and amendment to the Registration Rules has been made through the new SRO.
According to details, the applicant seeking sales tax registration should fill in the online registration application, supported by scanned copies of prescribed documents and photos of the business premises, using the android-based applications. In low-risk cases, the system would issue registration certificate within one week period.
According to the documents required under the “REGSYS,” the applicant shall electronically attach scanned copies of the required documents with his application including (a) CNIC of all owners, members, partners or directors, as the case may be; in case of a company or registered AOP, the Registration or Incorporation; in case of a partnership, the partnership deed and Statement of Affairs; bank account certificate issued by the bank, in the name of the business; lease or rent agreement, if the premises is on rent, along with CNIC of the ownership documents of the premises, such as registered sale deed; latest utility bills (electricity, gas, land-line telephone, and post-paid mobile); list of machinery installed, in case of manufacturer.
The applicant shall also submit GPS-tagged photographs of the business premises, machinery installed (if any), the electricity meter, and gas meter, as the case may be, using the electronic application provided by the Board for the purpose and electronically submit them to REGSYS.
As per the new rules, the application shall be processed electronically and if found complete in all respects, shall be assigned a risk score. In case the application is found incomplete or incorrect, Objection Memo shall be issued electronically to the applicant, allowing him a period of ten days to remove the objections before the application is rejected. In case the application is assigned a low risk score, registration certificate will be issued by REGSYS as set out in the Form STR-5 annexed to these rules, which will be sent to the applicant by courier service.
The remaining applications shall be sent to the Local Registration Office (LRO) concerned for further inquiry, which may include physical verification. The officer conducting physical verification shall take GPS-tagged photographs, as specified in sub-rule (1B) and electronically load them into REGSYS.
The new rules read that the person who has applied for registration as manufacturer, and is not assigned low risk score by REGSYS, shall be registered only after the LRO has physically verified his manufacturing facility.
