ISLAMABAD: The Federal Board of Revenue (FBR) has recommended a blacklisted company for the provision of Point of Sales (POS) integration software to retailers.
According to sources the tax department has authorised 42 vendors including Abuzar Consultancy, for the provision of POS softwares to retailers for integration with FBR. The retailers are free to approach any of these 42 vendors to attain the POS software.
Sources further disclosed that Abuzar Consultancy, despite being a blacklisted entity, is providing software services to retail chemist stores including Shaheen Chemists in Rawalpindi, Islamabad and Lahore while not being registered with tax authorities.
Currently, under FBR’s and Punjab Revenue Authority’s (PRA) directives, service providers are liable to charge General Sales Tax (GST).
According to sources, with this move the FBR aims to curtail GST theft that acts as an additional leakage in government’s revenue.
According to a FBR spokesperson, currently the POS system is a simple cloud based system requiring a computer, an internet connection and an application downloaded from Pakistan Revenue Automation Private Limited (PRAL). Due to the simplicity of the system, very few retailers currently use the services of the 42 approved vendors.
As per a preliminary inquiry, registration of Abuzar Consultancy was suspended due to non filing of returns with FBR and not due to tax fraud, the FBR spokesperson added.
Earlier, the FBR extended the date of POS registration to August 30 to facilitate retailers battling the adverse economic effects of Covid-19.
All tier-1 retailers are to express in writing their willingness to integrate their POS’s with the respective regional tax officers and large taxpayers units by August 30 to avail the extended deadline.
The initial deadline for POS integration with FBR’s system was December 15, 2019. However, it was later extended to June 30 to facilitate retailers amid the Covid-19 lockdown.
Currently, around 44,000 shops are registered with the FBR and the tax authority expects to register an additional 16,000 retailers by August 30.