KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the Federal Board of Revenue (FBR) to reduce the requirement of record keeping to three years instead of existing six years.
In its budget proposals 2017/2018, the FPCCI said that the registered persons are required to retain and maintain a plethora of records under section 22 up-till 6 years that includes invoices, credit notes, debit notes, bank statements, banking instruments in terms of section 73, inventory records, utility bills, gate pass, inward and outward transportation record, salary and labour bills, rental agreement, sales purchase agreements, lease agreements etc.,
This has resulted that every registered person requires services of professional staff and thus increases cost of compliance. It is not possible for small and medium size businesses to afford sales tax registration or its compliance.
Furthermore after introduction of detailed electronic compliance in sales tax return. The requirement for retention of such record is unnecessary, useless.
Therefore, it is recommended that condition of keeping record should be curtailed to three years.
