BUSINESS & ECONOMY TOP NEWS FBR issues ‘Sales Tax Order’
BUSINESS & ECONOMY TOP NEWS
FBR issues ‘Sales Tax Order’ regarding the provision of NIC
Buyer to fulfill the requirements of reporting NTN/NIC of the buyer in terms of Section 23 of the Sales Tax Act, 1990
Inclusive of sales tax and applicable further tax is deposited into the suppliers declared business account
The order states that the NIC/NTN provided is not of the employee of the seller or his associates as defined under Income Tax Ordinance, 2001.
ISLAMABAD: Federal Board of Revenue (FBR) has issued the Sales Tax General Order No. 106/2019 which states that keeping in view the problems reported by the registered persons in ensuring proper identity of the buyer to fulfil the requirements of reporting NTN/NIC of the buyer in terms of Section 23 of the Sales Tax Act, 1990.
It is directed that the NIC/NTN of the buyer with respect to taxable supplies to an unregistered person shall be deemed to have been reported in good faith by the supplier provided that the tax invoice complies with the requirements of Section 23 (b) of the Act and the payments made by or on behalf of the unregistered purchaser of the amount of the tax invoice, inclusive of sales tax and applicable further tax is deposited into the suppliers declared business account, a FBR press release Friday said.
Moreover, the NIC provided by the purchaser is found authenticated by NADRA. The order further states that the NIC/NTN provided is not of the employee of the seller or his associates as defined under Income Tax Ordinance, 2001.
In this regard, the issuance of a Show Cause Notice to a registered person being a seller on account of any matter arising out of the NIC provided by a purchaser shall not be made without the prior approval of Member IR, FBR after providing an opportunity to be heard.