ISLAMABAD: The Federal Board of Revenue (FBR) has relaxed conditions for sales taxpayers and requirement to file corresponding sales tax returns in order to claim input tax for many sectors.

The FBR has issued an SRO.1130(I)/2024 to amend Sales Tax Rules, 2006 here on Thursday.

According to details shared by a tax expert on SRO.1130(I)/2024, Federal Board of Revenue (FBR) has made further amendments under SRO 350(i)/2024, in conjunction with the Sales Tax Rules of 2006, due to ongoing issues with sales tax return filing.

SRO 350(I)/ 2024: FBR issues clarification on sales tax return filing problems

As a result of this amendment, the requirement to file the corresponding sales tax return in order to claim input tax has been relaxed to a certain extent. The board has excluded the application of the second proviso to sub-rule(3) of rule 18 from the following categories of supplies: -

(i); Gas transmission and distribution companies with effect from March 7, 2024.

(ii); Electricity distribution companies with effect from March 7, 2024.

(iii); Independent power producers or WAPDA with effect from March 7, 2024.

(iv); Third Schedule items issued to a distributor, wholesales, retailer, manufacturer or a trader with effect from March 7, 2024.

(v); The sales tax liability has been paid by the manufacturer to the extent of items as per return and none of the distributors, or wholesalers, or retailers, other than the manufacturers, have been the ultimate supplier of the items.

(vi); Petroleum exploration and production companies with effect from March 7, 2024;

(vii); Registered persons as buyers, if their suppliers have paid their sales tax liability as re-computed by application of the second proviso to sub-rule (3) of rule 18 after deletion of invoices along with corresponding input tax, within six days from the end of the month in which their returns were taken as provisional.

Copyright Business Recorder, 2024