Movement of goods from tax exempt areas to taxable areas: Persons required to get registered under ST Act

ISLAMABAD: Persons bringing taxable goods from tax exempt areas of Azad Jammu and Kashmir, Gilgit-Baltistan and tribal areas to the taxable areas of Pakistan would be required to get registered under the Sales Tax Act, 1990 of the Federal Board of Revenue (FBR).

The FBR has issued new rules here on Tuesday to regulate, monitor and document the incoming goods from the tax exempt areas into the territorial jurisdiction of Pakistan.

The FBR has introduced a new provision, ie, registration and liability of person bringing taxable goods from tax-exempt areas.

The person bringing taxable goods from tax exempt area shall be required to be registered under the Sales Tax Act, 1990 or Act as adopted in Azad Jammu and Kashmir and all the provisions of the Acts ibid shall apply accordingly.

The liability of payment of tax or taxes and furnishing of prescribed documents shall be on the person bringing taxable goods from tax exempt area and supplying the same in taxable area in the course and furtherance of taxable activity.

Subject to the applicable provisions of the Act and the rules made thereunder, a registered person shall be entitled to the adjustment of any input tax paid under the Sales Tax Act, 1990 as adopted in Azad Jammu and Kashmir.

Every registered person bringing, or causing to bring, taxable goods from tax-exempt areas into taxable area, in the course and furtherance of taxable activity, shall login to the FBR’s computerised system and electronically generate e-transport advice, with a unique identification number, in the form specified in STR 32.

The e-transport advice shall be issued prior to entry of the taxable goods in to the taxable area.

The Board may specify the location and other necessary particulars of check-posts, including mobile teams, if any, through a notification in the Official Gazette.

The Chief Commissioners Inland Revenue of RTO Peshawar, RTO Abbottabad, RTO Rawalpindi, RTO Sialkot, and RTO Quetta or any other RTO having jurisdiction over areas adjoining tax exempt areas, shall establish check-post or check-posts, as notified by the Board under sub-rule (1), within the relevant regional territorial jurisdiction.

At the check-posts every conveyance entering into taxable area from tax exempt areas and carrying any taxable goods (including such goods as are prima facie deemed or suspected to be taxable) shall be subjected to scrutiny by the authorised officer.

On the basis of credible information, mobile teams may proceed to intercept, examine and search any conveyance on the routes emanating from tax exempt areas and all the relevant provisions of the Act and these rules shall apply accordingly, the FBR maintained.

Every registered person bringing taxable goods from tax-exempt areas into taxable area, in the course and furtherance of taxable activity, shall login to FBR computerized system and electronically generate e-transport advice, with a unique identification number, in the form specified in STR-32 form.

The e-transport advice shall be issued prior to entry of the taxable goods in to the taxable area.

Provided that a registered person shall only be allowed to generate etransport advice, if he is not blacklisted or suspended in terms of section 21 of the Sales Tax Act and he has filed return under section 26 thereof by the due date for the last two immediately preceding tax periods, the FBR added.

Copyright Business Recorder, 2021