SALES TAX RETURN

  • Every person registered under the Sales Tax Act,1990, or the Federal Excise Act, 2005, is required to file a Sales Tax Return.
  • A Sales Tax return is the taxpayer’s document of declaration through which taxpayer not only furnishes the details of transactions during a tax period but also deposits his Sales Tax liability.
  • On the return form, the taxpayer declares for a particular tax period and respective input tax and output tax, at prescribed rate of Sale Tax. In case input tax exceeds output tax, the amount of refund claimed or excess input tax is also declared in the return.
  • A registered person shall file a single return for all the possible sectors that the registered person is operating in. Due date for the single return for the sectors would be the due date applicable to his major activity in terms of sales tax or federal excise duty payable.
  • Where a Sales Tax Return is not filed within a period of six months after the due date, the same shall be filed only after approval of the Commissioner Inland Revenue having the appropriate jurisdiction.

Monthly Return

  •  Under the standard procedure a registered person is required to file monthly return by the 15th day of the month following the period in which the supplies were made, in the designated branches of National Bank of Pakistan. In case of certain categories as mentioned below procedure has been devised to file return on monthly and quarterly basis

Sales Tax Rate

17% Goods: supplies of goods, including imports. There is an additional 1% levied where the customer is a non-Sales Tax registered consumer.

16%, 15% and 13% Services: banking; construction; shipping; telecoms (17%); advertising; & Telecommunication is 19.5% specialist advice and consulting; outsourced businesses services; event organization and related services; temp or contract employees; hotel and restaurants.

10%, 8%, 5%, 3% Local imports and produce for export. Sugar. Certain plant and machinery.

18.5% to 25% various other specific supplies, including metals, chemicals and petroleum products

0% Exports; office stationery

Exempt Pharmaceuticals; books and newspapers; agriculture produce; medical supplies

Penalty

  • If the delay is beyond 15 days, a penalty of Rs. 5000/= is payable. If a return is not filed within 15 days after the end of the relevant tax period, a registered person will be liable to a penalty besides additional tax at the rate of Rs 100/- per day.