Pakistan News Service

Wednesday Oct 16, 2019, Safar 16, 1441 Hijri
Logo
LATEST :
Pakistan News Home -> Top -> News Details

Purchase over Rs50,000, citizen to show CNIC

23 July, 2019

  Related News  
Imran Khan met Trump at White House
Imran Khan address in US
  More on this View All

ISLAMABAD: The Federal Board of Revenue has notified provisions making it mandatory for ordinary citizens to show Computer National Identity Card in case of purchase over Rs50,000 from a registered sales tax seller.

In the case of a female buyer, the CNIC of her husband or father will be considered valid for the purchase.

The law further provides that this condition will not apply if the value of purchases is below Rs50,000 in case sales are being made to an ordinary consumer.

The main purpose of the CNIC condition is for documenting business-to-business transactions and few transactions in a value higher than Rs50,000 by limited number of consumers and that too from sales tax registered person. This condition will help avoid, unverifiable and fictitious business buyers which results in huge sales tax losses in the value chain.

The clarification came from FBR through a sales tax circular issued here to explain the amendments made in the Sales Tax Act, which made it mandatory for buyers to show CNIC on purchases made from a sales tax registered person. There are 41,484 such sales tax registered persons who are actually paying some tax with returns.

As per the amendment, if a purchase is made from a sales tax registered person, the CNIC number of the buyer is to be provided in limited situation. Provision of CNIC number does not mean that buyer has to be a registered person under the sales tax law. Sales to unregistered person can be made.

It was also clarified that if it is subsequently proved that CNIC provided by the purchaser was not correct, liability of loss or penalty will not arise against the seller in case the sale is made in good faith.

In Pakistan, under the present regime and also under the proposed one for retailers, ordinary small and medium-sized retailers fall outside the sales tax regime. Therefore, sales by such persons will not affected by this provision in any manner.

Moreover, no action will be taken against the seller if any error or incorrectness is identified subsequently provided the transaction has been made in good faith. Certain policy guidelines will be followed in this regard.

 What do you think about the story ? Leave your comments!

Heading (Optional)
Your Comments: *

Your Name:*
E-mail (Optional):
City (Optional):
Country (Optional):
 
 
Field marked(*) are mandatory.
Note. The PakTribune will publish as many comments as possible but cannot guarantee publication of all. PakTribune keeps its rights reserved to edit the comments for reasons of clarity, brevity and morality. The external links like http:// https:// etc... are not allowed for the time being to be posted inside comments to discourage spammers.

  Speak Out View All
Military Courts
Imran - Qadri long march
 
Candid Corner
Exclusive by
Lt. Col. Riaz Jafri (Retd)
Pakistan itself a victim of state-sponsored terrorism: Qamar Bajwa
Should You Try Napping During the Workday?
Suggested Sites