Step to ensure business documentation: taxpayers required to install e-tax register

The Federal Board of Revenue (FBR) has made it compulsory for the taxpayers, particularly big retailers, to install at business premises electronic tax register (ETR) within seven days of the order by income tax commissioner for computerised record keeping of sales and purchases.
The board on Saturday proposed amendments in the Income Tax Ordinance, 2001 whereby certain taxpayers would be required to maintain 'electronic tax register' and issue invoice to each purchaser. The decision has been taken to ensure documentation of business activity in the country.
The ETR would be required to be maintained by the retailers etc where commissioner wants to document sales on regular basis. Within seven days of the order of the commissioner, such ETR has to be maintained by big business establishments.
The tax authorities have sought objections and suggestions, within 7 days of the publication of the proposed amendments, and said that draft would be taken into consideration after seven days of its publication in the official Gazette.
Any objection or suggestion, which may be received from any person in respect of the said draft before the expiry of the aforesaid period, shall be considered by the FBR for possible facilitation of the taxpayers, said the FBR.
According to S R O 864 (I)/2008, a person required to use an electronic tax register shall install the electronic tax register (ETR) within seven days of its authentication by Commissioner holding jurisdiction over such case and obtain a register identification number (RIN) for permanent affixture on the electronic tax register.
Taxpayer would be required to use the electronic tax register to record only his own sales and ensure that each sale is made through it and print the receipt of each sale containing the information in accordance with sub-rules(3) and (4) of rule 29 and rule 30, and to deliver the original receipt to the purchaser.
In case of non-availability for use of the electronic tax register, the sales may be recorded with the use of a substitute electronic tax register, duly authenticated by the Commissioner, the draft says.
Taxpayers would also be required to prepare daily and monthly accounting reports containing information as prescribed in Chapter VII of these rules based on invoices generated through electronic register. Ensure that the electronic tax register operates correctly with particular regard to correct programming of the names of goods and services and the correct allocation of their tax rates while in use at business place.
To ensure issuance of invoice to the purchaser the business administration would be required to promptly report any malfunctioning of the electronic tax register to the person responsible for its servicing. On demand by an authorised person, produce the electronic tax register for inspection. Ensure the inspection of the electronic tax register before the authorised service management after six months.
Keep copies of electronic tax register reports for a period of five years and produce the same for inspection by the Commissioner whenever required to do so. Safely keep the electronic tax register ledger in the electronic tax register's casing and produce it whenever required by the Commissioner to do so; and ensure the inspection before further use of an electronic register which has been or is suspected to have been interfered or tempered with", the draft concludes, the rules added.