Retailers'' registration: RTO Karachi obtains list of K-Electric commercial consumers

Regional Tax Office-II (RTO) Karachi has obtained a list of commercial consumers of K-Electric Ltd with electricity bill of Rs 600,000 or above during the last one year, for registration of retailers in Karachi. Sources told Business Recorder here on Saturday that the RTO-II Karachi has communicated the list of Karachi-based commercial consumers to RTO-I and RTO-III Karachi for registration of retailers.
List of persons having commercial connections and total electricity bill exceeding Rs 600,000 in the preceding 12 months (average Rs 50,000 per month) obtained by the RTOs from the electricity supply companies would be used for registration. According to the Regional Tax Office-II (RTO) Karachi letter to the FBR, one important budgetary measure relates to retailers, which is effective from July 1, 2014. Two tiers have been created for charging sales tax from retailers. The first tier comprises retailers of categories specified in sub-rule (4) of rule 5 of the Sales tax Special Procedure Rules, 2007, as amended by SRO.608(4)/2014 dated 02.07.2014 who are required to pay sales tax in the normal regime. List of some such retailers have already been e-mailed to the RTOs by FBR IR-Policy Wing for getting them registered and ensuring payment as per normal regime. Others may be unearthed/identified by the RTO themselves.
As per the SRO following categories of retailers are required to be registered under normal regime: A retailer operating as unit of a national or international chain of stores; a retail operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks; a retailer who has a credit or debit card machine; a retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rs 600,000 and a wholesaler com retailer engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers. In this regard, RTO-II Karachi has communicated the data in soft form related to commercial consumers of K-Electric Ltd, having cumulative electricity bill of Rs 600,000 and above during the immediately preceding twelve months as provided by K-Electric Ltd. The data is forwarded for further necessary action as per the rules and ST.GO.66/2014 dated 21.07.2014 to the RTO-I and RTO-III, sources added.