ISLAMABAD: The Federal Board of Revenue (FBR) will charge three percent further sales tax on supplies made to the private hospitals, non-governmental organizations (NGOs) and charitable organisations that have not obtained sales tax registration numbers (STRNs).

In this regard, the FBR has issued a clarification on the applicability of further sales tax here on Friday.

The FBR’s legal interpretation revealed that refers to Healthcare Devices Association of Pakistan letter on the subject and says that SRO648(I)/2013 provides exclusion from charging of further tax as envisaged under section 3(IA) of the Sales Tax Act, 1990.

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Supplies made to persons who procure goods to be used in their business whether or not such goods in furtherance of business will attract further tax under section 3(1A) of the Sales Tax Act, 1990 if such persons have not obtained sales tax registration number, the FBR maintained.

As supplies to government, semi-government and statutory regulatory bodies are excluded from further tax as provided under serial number 12 of the aforesaid SRO as amended through SRO.692(I)/2019; therefore, supplies to these entities whether or not registered under the Sales Tax Act, 1990 will not attract further tax.

On the other hand, supplies made to the private hospital, NGOs and charitable organisations who that not obtained sales tax registration numbers will attract further tax irrespective of the fact that such goods are consumed by these entities otherwise, the FBR added.

Copyright Business Recorder, 2022