Deadline for online integration set to extend for fourth time

Deadline for online integration of tier-1 retailers' point of sale (POS) with the computerized system of Federal Board of Revenue (FBR) is set to extend for the fourth time, said reliable sources in the FBR.

It may be noted that the FBR had initiated the process last year with an initial deadline of 31st December 2019 that was extended to 31st January 2020, followed by another extension to 31st March 2020 and further to April 30, 2020.

The sources said the Board has no option but to extend the deadline further due to ongoing lockdown in the country after the outbreak of coronavirus. They said negotiations between the Board and traders could not take place regarding discrepancies in surveys of retail markets. The deadline is likely to extend up to 30th June, they added.

It may be noted that over 350 retailers have successfully registered with the FBR's online system of integration so far. All tier-1 retailers as defined under Section 2(43A) of the ST Act, 1990, read with Section 3(9A), are required to integrate their point of sale (POS)/retail outlets with the FBR's computerized system for real-time reporting of their sales with effect from December 1, 2019. However, the date has been repeatedly extended to facilitate big retailers for their online integration with the FBR.

Registration of tier-1 retailers under the Point of Sale (POS) Integration System of the Federal Board of Revenue (FBR) is not up to the mark due to the technical flaws, said the sources. It may be noted that the FBR has set March 16 as a deadline for retailers to show their willingness and March 31 for registration under the system. However, the number of retailers showing willingness or getting registered with the system is abysmally low.

The sources said one big reason behind a snail-pace growth in registration with the system was wrong surveys conducted to assess those seems fit for the category of tier-1 retailers. The tier-1 retailers included (a) a retailer operating as a unit of a national or international chain of stores; (b) a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks; (c) a retailer whose cumulative electricity bill during the immediately preceding 12 consecutive months exceeds Rs 1,200,000; (d) a wholesaler-cum-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; (e) a retailer whose shop measures one thousand square feet in area or more; and (f) any other person or class of persons as prescribed by the Board.

Saher Aftab, focal person of non-corporate zone of RTO-II, when contacted said there was a plan of inspecting retailers after 31st March to initiate legal course against those not registered with the online system of the Board. However, a complete deadlock of markets, including the shopping malls, had led to an extension up to April 30, 2020.