ISLAMABAD: A registered person is required to retain sales tax record for a period of six years for audit and examination purposes.
According to official Federal Board of Revenue (FBR) website (https://www.fbr.gov.pk/categ/sales-tax-records/51148/50854/%20121153), a registered person is required to maintain a record and documents for a period of six (6) years after the end of the tax period to which such record and documents relate.
The electronic sales tax return and its relevant attachments, if any, shall be kept in electronic record of the registered person and shall be produced to the officer-in-charge on demand along with the supportive documents. If the delay is beyond 15 days, a penalty of Rs.5000/month is payable.
The FBR said that a registered person must keep a record in English or Urdu of all the goods and services supplied, purchased or imported in the course of business.
The record of sales should indicate the following details of goods supplied or services rendered:
- Description.
- Quantity.
- Value.
- Name and address of the customer, and
- Amount of tax charged.
At the end of each month, a registered person must add up the sales tax shown in these records, and transfer the total to sales tax account as output tax.
The record of purchases and imports should indicate the following details of goods purchased or received or services hired:
- Description;
- Quantity;
- Value;
- Name, address and registration number of the supplier,
- Amount of tax paid on purchases.
All payment so receipts of amount of sales tax on purchases or supplies above Rs. 50,000 (except utility bills) should be made through bank instruments indicating specified bank accounts of both the persons i.e., sellers and purchasers. It is recommended that records/ photocopies of all bank instruments through which payments of sales tax are made or received must be kept along with bank statements for the purpose of compliance of section 73 of the Act and to avoid audit complications.
A registered person should also keep record of:
- Zero-rated and exempt supplies,
- Record of invoices, credit notes, debit notes, bank statements, inventory
- Utility bills, salary and labor bills, rental agreements, sale purchase agreements and lease agreements.
A registered person is required to maintain a record and documents for a period of six (6) years after the end of the tax period to which such record and documents relate.
The electronic sales tax return and its relevant attachments, if any, shall be kept in electronic record of the registered person and shall be produced to the officer-in-charge on demand along with the supportive documents. If the delay is beyond 15 days, a penalty of Rs.5000/month is payable.
