FBR imposes service charges of Re1 on POS invoice

Shahnawaz Akhter Web Editor

01st Oct, 2021. 05:20 pm

KARACHI: The Federal Board of Revenue (FBR) on Friday imposed service charges of Re1/invoice issued through all point of sales.

According to the SRO 1279 (I)/2021 issued by the revenue board, it has been decided to levy service charges at the rate of Re1/invoice issued through all POS integrated with the FBR’s computerised system for the real-time reporting of sales.

The service charges would be collected by Tier-1 retailers integrated with the FBR’s system and deposited in a designated account along with the monthly payment of sales tax and filing of the sales tax return.

Previously, the FBR notified an amendment in the Sales Tax Rules, 2006 through SRO 1006 (I)/2021 dated August 9, 2021 to make part imposition of service charges on invoices issued through POS.

“The POS service fee of Re1/invoice shall be collected by the Tier-1 retailers from the customer and shall be deposited along with the monthly sales tax return,” according to the rules.

The POS service fee collected each month would be deposited by the Tier-1 retailer in a separate head of account, it added.

Through another SRO 1005(I)/2021, the FBR issued a procedure for the prize scheme. Under this scheme, the customers of integrated Tier-1 retailers, whose names and computerized national identity cards (CNICs) are notified through a random computerised draw would be entitled to prize in respect of their purchases from the Tier-1 retailers.

As per the Sales Tax Act, 1990, the Tier-1 retailers included a retailer operating as a unit of a national or international chain of stores; a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks; a retailer whose cumulative electricity bill during the immediately preceding 12 consecutive months exceeds Rs1.2 million; a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers, as well as on retail basis to the general body of the consumers; a retailer, whose shop measures 1,000 square-feet in area or more or 2,000 square-feet in area or more in the case of retailer of furniture; and a retailer who has acquired point of sale for accepting payment through debit or credit cards from the banking companies or any other digital payment service provider authorised by the State Bank of Pakistan.

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