ISLAMABAD: A prominent superstore in the federal capital was found violating strict government instructions as it was not mentioning sales tax on cash receipts despite selling items for higher than usual rates.
Sources told Profit that a complaint was filed with the Prime Minister Delivery Unit (PMDU) on October 4, 2020, concerning the nondisclosure of sales tax by Imtiaz Super Market in Islamabad.
Imtiaz Super Market is a well-known store operating in DHA-2 in the federal capital. The complainant maintained that the store was not charging sales tax on its invoices despite selling above standard rates. The PMDU has forwarded the complaint to the chairman of the Federal Board of Revenue (FBR). Subsequently, the chairman sent the complaint to the chief commissioner of Inland Revenue (CCIR) in Islamabad.
The CCIR, it its remark, said that the issue was in the jurisdiction of Karachi CCIR.
According to documents available with Profit, the Islamabad CCIR on October 7 had forwarded the complaint to CCIR Karachi-1.
The Sales Tax Act, 1990, states that “a registered person making a taxable supply shall issue serially numbered tax invoices at the time of supply of goods containing the name, address and registration number of supplier, name of receipt, data of issuance of invoice, description and quantity of goods, value exclusive of tax, amount of sales tax and value inclusive of tax.
The act states that any person who fails to issue an invoice when required under the law shall pay a penalty of Rs5,000 or 3 per cent of the amount involved – whichever is higher.
Profit contacted the spokesperson of the FBR, but no response was received by the time of filing of this report.
This is common practice that despite the instruction many restaurants and stores like Green Valley do deduct tax mentioned on their receipts but there is no NTN number mentioned on it. A customer first have to pay included tax of whatever he buys than another tax has to be paid deducted by the stores. Corruption is everywhere
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