ISLAMABAD: The Federal Board of Revenue (FBR) has started receiving live transactions of sales of finished articles of textile and leather and the eligible persons integrating or having already integrated their systems with the FBR can now avail the reduced rate of 6pc on their sales as announced by the federal government.
The federal government had notified, effective from 1st July 2018, a reduced rate of 6pc for finished articles of textile and leather for those registered persons who are online with FBR’s computerised system.
This system was made operational by issuing SRO 1360(I)/2018, dated 12th November 2018. As many as 75 registered persons are now integrated with FBR and declaring the sales of their 2,574 outlets through this system.
The FBR’s system is now ready for receiving live sales transactions as specified in rule 150ZEB of Sales Tax Rules 2006. The eligible registered persons can download the software and integrate all their already declared outlets with the FBR’s system. This is to be done by 3rd March 2019, in order to regularise the reduced rate already availed. In case of failure, the differential amount shall be recoverable.
The persons volunteering to integrate their systems to avail reduced rate on future supplies and who fulfill the conditions in rules can approach respective commissioners for approval in this respect. Websites hosted with a registered domain name have also been recognised to be treated as sales made through point of sale.
FBR should decrease tax rates for Leather industry. This industry creates high employment and create alot of jobs.