CNIC condition: FBR concerned at non-compliance by majority of businesses

ISLAMABAD: The Federal Board of Revenue (FBR) has expressed its concern over non-compliance by majority of businesses with regard to furnishing CNICs of individuals making purchases worth Rs100,000 or above.

The issue highlighted in the said meeting of the FBR chairman with the business community at Lahore Chamber actually referred to factitious identity and fake entries being recorded by businesses.

These remarks, by no means, related to issuance of the CNICs by the NADRA, the FBR added.

According to a clarification issued by the FBR here on Monday, while addressing the business community at the Lahore Chamber of Commerce and Industry (LCCI) on March 13 (Sunday), Chairman FBR had expressed his concerns about non-compliance by majority of businesses with regard to furnishing CNICs of individuals making purchases worth Rs100,000 or above, as required by law.

Under section 23 of the Sales Tax Act, 1990, a registered person making a taxable supply shall issue a serially numbered tax invoice at the time of supply of goods containing the following particulars: (a) name, address and registration number of the supplier; (b) name, address and registration, number of the recipient and NIC or NTN of the unregistered person, as the case may be, excluding supplies made by a retailer where the transaction value inclusive of sales tax amount does not exceed Rs100,000, if sale is being made to an ordinary consumer.

The ordinary consumer means a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing. The condition of NIC shall not apply in the case of payment through debit or credit card or digital mode.

Likewise, the FBR further stated that the FBR as a regulatory body has been making all out efforts in ensuring compliance of the FATF regulations in cases of the DN FBPs, in letter and spirit, and is also fighting the menace of money laundering, by all means possible.

During this event, the chairman FBR said that the FBR refund system is one of the best in the world and ST refunds are being cleared in 72 hours. He said that the requirement of the CNIC of purchaser is a must as the transactions of billions were being made under fake CNICs.

To a question regarding bank accounts attachment, the chairman said that it is a civilized way for recovery instead of sealing properties or business premises.

Copyright Business Recorder, 2022