Electronic filing of sales tax returns scheme launched

The Central Board of Revenue (CBR) has launched a scheme of filing sales tax and federal excise returns by the corporate sector including registered units of Large Taxpayers Units (LTUs) of Karachi/Lahore and public/private limited companies from December 1, 2005 electronically.
The CBR on Thursday issued 'Electronic Filing of Sales Tax Return Rules, 2005' and 'Electronic Filing of Federal Excise Return Rules, 2005' to notify the procedure.
The 502 registered units of LTUs, Karachi/Lahore and public and private limited companies registered in all collectorates would start electronic filing of returns for the 'tax period' November 2005 in December. The CBR has issued separate returns for sales tax and federal excise.
Outlining salient features of new scheme, CBR Member Sales Tax Shahid Ahmed told Business Recorder on Thursday that the initiative has been taken as a part of government policy of good governance. In the first phase, over 1000 registered corporate companies could obtain a number of benefits by electronic filing of returns. First, taxpayers would be free to file return anytime without any physical interaction with the banks. However, taxpayers could electronically file return from anyplace.
Secondly, taxpayers would be no more required to stand in queue for filing returns. Thirdly, CBR will issue a system-generated acknowledgement to the taxpayer confirming that the e-mail has been received. Forth, the changes of typing errors during the data entry of sales tax returns would be completely eliminated following introduction of electronic system. There would be no more human error as far as data entry of returns is concerned.
He said that there are cases where the return has been deposited in the bank, but misplaced while transferring it to the collectorates of sales tax. In such cases, certain taxpayer had received notice of non-filing of returns. All such problems would be resolved following the new electronic system, which is very futuristic.
Member Sales Tax said that the CBR has also decided to set-up 'service counters' in each collectorate of sales tax to facilitate corporate clients. These facilitation counters would guide the taxpayers in accurate filing of sales tax returns through electronic means.
The new Dispute Resolution Complex Karachi and other reformed units would also contain such 'service counters'. The CBR has also deputed Local Mail Operators (LMOs) in each collectorate to properly receive electronically filed returns alongwith the attached documents.
The electronic filing of sales tax return has more significance as compared to income tax. The registered person has to file sales tax return on monthly basis as compared to income tax return, which was filed once in a year.
It is necessary for the registered taxpayers to file their sales tax and federal excise returns through a digitally signed e-mail. In this regard CBR has hired the services of National Institutional Facilitation Technologies (Pvt) Ltd (NIFT).
Taxpayers would be required to register with NIFT by filling the registration form available on website www.nift.pk on payment of one time registration fee of Rs 5000. NIFT registration would also be done on the spot in seminars which are going to the held to educate the taxpayers in Lahore, Karachi and Islamabad on December 7, 2005, December 8 and December 10 respectively.
He said that the registered persons could download MS Excel based blank electronic sales tax/federal excise return form from the CBR website and fill information about the purchases and supplies made during a tax period, the tax due and paid and other applicable information.
The payment of the amount of sales tax, if any, shall be made in any of the designated branches of National Bank of Pakistan (NBP) on the prescribed payment challan. The reference number of the computerised payment receipt generated by the NBP and other required information should be duly mentioned in the relevant columns of the electronic return.
The duly filed electronic return including a 'nil return' would be transmitted to the CBR e-mail address ie [email protected] through a digitally signed e-mail. The Board would send a digitally signed e-mail acknowledging the receipt of return.
The complete procedure of electronic filing is available in SRO 1184(I)/2005 and 1185(I)/2005 both available on CBR's website, he added.
The CBR has also issued instructions to all the collectors of sales tax to facilitate the corporate companies in electronic filing of returns.