Sales Tax

Sales Tax Solutions – Genisol Legal

PAKISTAN'S TRUSTED
SALES TAX
SOLUTIONS FOR YOUR BUSINESS

Simplify your life and let us handle your GST and PST registration, monthly sales tax filing, and notices – so you can focus on the success of your business.

Sales Tax Consultant at Genisol Legal

If you are a

SME
Startup
Freelancer

We will ensure that you do not need to worry about Sales Tax matters anymore.

Our qualified Chartered Accountant, Tax Consultant, and Legal Experts
will take care of everything.
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PST Registration
Registering your services has never been easier. Get your Provincial Sales Tax number hassle-free.
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GST Registration
Register your business and easily get your STRN from FBR. Simple, fast, and fully managed.
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Sales Tax Filing
Whether your case is simple or complex, we've got you covered with expert monthly filings.
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Frequently Asked Questions

1 – Am I eligible for Sales Tax Registration for the purpose of supplying goods?
Any person who makes a taxable supply of goods or services in Pakistan and whose annual taxable turnover exceeds the prescribed threshold is required to register for Sales Tax. Voluntary registration is also available for those below the threshold.
2 – Who could be categorized as Tier-1 Retailer?
A Tier-1 Retailer includes retailers whose annual turnover exceeds Rs. 100 million, those operating in air-conditioned malls or plazas, and those whose electricity bill exceeds a specified threshold as prescribed by FBR regulations.
3 – What are the documents usually required for Sales Tax Registration?
Common documents include: CNIC of the proprietor/directors, NTN, business address proof, latest utility bill, bank account details/maintenance certificate, and in case of companies, the incorporation certificate and memorandum & articles of association.
4 – What are the necessary obligations and compliances after Sales Tax Registration?
After registration, you must file monthly sales tax returns, maintain proper books of accounts, issue tax invoices for all taxable supplies, deposit tax dues by the due date, and comply with all notices and audit requirements from FBR.
5 – What would be the ingredients to be mentioned while issuing sales tax invoices to the customers?
A valid sales tax invoice must include: serial number, date, seller's name and STRN, buyer's name and NTN/STRN (if registered), description of goods/services, quantity, value, rate of sales tax, and the amount of sales tax charged.
6 – How often do returns have to be submitted? And are there any important dates to consider while filing Sales Tax returns?
Sales Tax returns are filed monthly. The due date for filing and payment is the 18th of the following month. Tier-1 retailers may have different filing intervals as notified by FBR. Missing deadlines attracts penalties and default surcharge.
7 – What would be the penalty in case where a registered person fails to furnish its sales tax return within due date?
Under Section 33 of the Sales Tax Act 1990, a penalty of Rs. 10,000 or 5% of tax due (whichever is higher) may be imposed for failure to file the return by the due date. Repeated defaults attract higher penalties.
8 – What would be the penalty in case the required amount of sales tax payable is not deposited in the manner or time as prescribed under Sales Tax Act, 1990?
In addition to penalties, a default surcharge at the rate of KIBOR plus 3% per annum is charged on the unpaid amount from the due date until the actual payment date.
9 – What are the documents required for filing monthly sales tax returns?
You will need purchase invoices, sales invoices, STRN credentials, bank payment receipts for tax dues, and details of any input tax credits being claimed. The return is filed electronically through FBR's IRIS portal.
10 – Do registered persons need to file Sales Tax Return for a period in which they had no business activity?
Yes. A registered person is required to file a Nil return even for periods of no business activity. Failure to do so is treated as non-filing and attracts the same penalties applicable to regular non-filers.
11 – How would sales return be handled / declared in Sales Tax?
Sales returns (debit/credit notes) are declared in the monthly return by adjusting the output tax liability. A credit note must reference the original tax invoice and be issued within the prescribed time limit as per Sales Tax Rules 2006.
12 – What could be the possible repercussion in case where a business fails to furnish its sales tax return?
Persistent non-filing can result in: monetary penalties, blacklisting of the business (disabling input tax claims by buyers), criminal prosecution under the Sales Tax Act, and eventual de-registration or suspension of the STRN.

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