The Federal Board of Revenue has (FBR) has decided to take action against taxpayers, particularly manufacturers who would fail to provide details of the computerised national identity card (CNIC) number or national tax number (NTN) of unregistered buyers under SRO 821(I)/2011.
In this connection, the FBR issued instructions to all Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) on Wednesday. According to FBR directive, the Board has given extension in requirement of furnishing CNICs/NTNs of the unregistered buyers in their sales tax returns.
In a letter issued to all chief Commissioners of LTUs and RTOs, it is stated that the requirement of furnishing the computerised national identity card (CNIC) number or national tax number (NTN) of unregistered buyers as prescribed under SRO 821(I)/2011 dated September 6, 2011 shall become mandatory for the invoices issued on or after November 1, 2011.
The FBR has further stated that all taxpayers who fail to provide such details in the return pertaining to the tax period November, 2011 shall be strictly dealt with under the law. Sources said that the Board had suspended implementation of a major documentation measure for all categories of taxpayers by not demanding CNICs/NTNs of unregistered buyers.
The FBR will not collect this information for the tax periods of September and October 2011. However, all taxpayers have to provide the CNICs/NTNs of unregistered buyers for the sales tax invoices issued on or after November 1, 2011. The documentation measure would primarily target unregistered wholesalers, distributors and dealers, who are already liable to be registered under the sales tax rules. This information about the unregistered wholesalers, distributors and dealers would be submitted by the concerned manufacturers from whom supplies have been obtained by the said categories of businessmen, sources added.