11/08/2021
Q. What is the disadvantage to or penalty for tier-1 retailers who fail to integrate their POSs?
Ans. Under section 33 of the Sales Tax Act, 1990, as amended by Tax Laws (Second Amendment) Ordinance, 2019, specific penalty has been provided for retailers failing to integrate. Under the newly added clause 25 in the Table in section 33, a tier-1 retailer failing to integrate shall be liable to penalty of Rs. 1 million, and in the event of continuing failure may face sealing of his premises and embargo on his sales.
Further, disadvantage of failure to integrate, as provided in sub-section (6) of section 8B, is that the adjustable input tax of the retailer shall be reduced by 15%.
Q. What is the penalty if an integrated retailer tries to bypass the system and fails to report any sales to FBR?
Ans. Under clause 24 of Table in section 33, such retailer shall face a penalty up to five hundred thousand rupees or two-hundred percent of the tax amount involved, whichever is higher. Such retailer may also to be sentenced to imprisonment which may extended to two years.
Q. Is there a penalty for a software vendor who provides for sale skimming in the software provided to the retailer?
Ans. Under the same clause 24, referred to above, any person who abets or connives with the retailer in suppression of sales or non-reporting of sales may be sentenced to imprisonment for a term which may extend to one year and also to a fine up to two hundred thousand rupees. Software vendor providing for skimming in the software shall be subject to these penal provisions.
Q. Should bakeries or sweetmeat shops also integrate their POSs?
Ans. All those establishments, whether manufacturers or not, who sell their goods to general public for consumption are retailers as provided in clause (28) of section 2 of the Sales Tax Act, 1990.
Therefore, bakeries and sweetmeat shops, selling goods to general public are also retailers. Therefore, such bakeries and sweetmeat shops, whether or not manufacturers also, shall be treated as tier-1 retailer if they fall in the definition of tier-1 retailer as in clause (43A) of section 2 and they shall be accordingly required to integrate their POSs.
Q. Should all restaurants integrate their POS with FBR?
Ans. Yes. It is mandatory for all restaurants to integrate their POSs. Chapter XIV-A of the Sales Tax Rules, 2006 pertains to restaurants, snack bars, cafes etc. All such establishments, whether or not falling in category of tier-1 retailers, are required to integrate their POSs under the said Chapter.
https://help.fbr.gov.pk/?p=6148
