Buyers/suppliers invoices summaries: manufacturers distributors to provide details

The ''Reform Co-ordination Group'' (RCG) of the Federal Board of Revenue (FBR) has proposed to make it mandatory for the manufacturers, distributors and wholesalers to provide particulars of all registered and un-registered buyers and sellers under the sales and purchase invoice summaries.
The RCG of the FBR has discussed different ideas to obtain information about the retailers'' community without directly interacting with them. Sources told Business Recorder here on Thursday that a recent meeting of the sub-groups on Customs and ST/Federal Excise of the RCG has shared the ideas for broadening the tax base through utilisation of the data pertaining to un-registered buyers/sellers, electricity/gas connections and mobile phones connections etc.
The RCG discussed innovative ideas for broadening the tax base particularly registration of retail sector. However, some ideas were more viable to obtain the data of turnover of retailers without directly approaching the retail outlets. It was observed that the FBR could approach the manufacturers, wholesalers and dealers to obtain the particulars of registered as well as un-registered buyers.
In this regard, an enabling provision in the sales tax law could be introduced to obtain the details of the un-registered buyers and sellers. Once the FBR would obtain information about the un-registered buyers, the turnover/sales of the retailers would automatically be known to the tax department without directly approaching the retail outlets.
Presently, the manufacturers, distributors and wholesalers are not bound to disclose particulars of un-registered buyers and sellers in the sales tax invoice summaries. The provision to obtain such details is available in the return, but enabling clause is needed to be introduced to implement the decision. As per existing law, details of only registered buyers could be obtained through return/invoice summary.
Under the proposal, the manufacturers, wholesalers and distributors should provide details of all sales and purchases whether the sellers and buyers are registered or not. Irrespective of the fact whether the buyers and sellers are registered or not, the particulars should be obtained to expand the tax net. In this way, the information of the buyers and retailers would be available to the tax department without going to the retailers.
The rationale behind the proposal is to obtain information about the retailers without directly interacting with the retailers'' community. The RCG of the FBR also discussed the idea that instead of focusing on retailers, the tax machinery should focus on manufacturers, wholesalers and distributors to expand the tax-base.
The same information about retailers could be obtained through indirect means and sources as mentioned above. The information of the un-registered buyers would also help in obtaining details of the persons receiving supplies. The RCG of the FBR would materialise its proposals in the meeting expected to be convened next week.