Karachi: The Federal Board of Revenue (FBR) has decided to take action against these major shops for failing to integrate with the FBR’s Point of Sale (POS) system and has published a list of 114 unregistered businesses (Tier-1).
These 114 stores are allegedly working outside of the established framework and failing to deposit the sales tax they have earned from customers into the national coffers, according to a statement made by the nation’s tax collecting agency.
If these large merchants (Tier-1) do not integrate with the FBR’s POS system by the deadline of August 10, 2022, the board has decided to increase the sales tax demand against them.
The FBR published a list of 101 large shops (Tier-1) last month. These stores are obliged to be linked with the FBR’s POS system and will not be eligible for a 60% input tax credit if they are not.
According to FBR, all of the aforementioned Tier-1 merchants’ input tax claims will be rejected when they submit their sales tax returns for the month of August 2022.
The FBR’s letter also said that a system-based approach has been used to operationalize this law’s provision.