Chapter 3 ( Sales tax )Registration

Registration (section 14)

The registration will be required for such persons and be regulated in such manner and subject to rule as the board may, by notification in the official Gazette, prescribe.

Applicability of the rule(sales tax rule 3, 2006)

The sale tax rules 2006, shall applied to the following person

A person required to be registered under the act

A person required, under any other federal law or provinical law, to be registered for the purpose of any duty or tax collected or paid as it were sales tax under the act.

A person who is subject to compulsory registration

A person who is already registered and required to change in the name, address or other particulars of registration.

A person who is blacklisted or whose registration is suspended

A person who is required to de- registered

Requirement of Registration (Sale tax Rule 4,2006)

The following persons engaged in making of taxable supplies in Pakistan in the course or futherance of any taxable income carried on by them, if no already registered are required to be registered under the sales tax act 1990 namely:

A manufacturer not being a cottage industry whose annual turnover from taxable supplies made in any period during the last twelve months ending any tax period exceeds five million rupees

A retailer whose value of supplies in any period during the last twelve months ending any tax period exceeds five million rupees.

An importer A wholesaler ( including dealer ) and

distributor A person required, under any other federal

or provincial law, to be registered for the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be collected under the act

A commerical exporter who intends to obtain sales tax refund against his zero related supplies.

Procedure of Registration(rule 5) A person required to be registered under the act

shall, before making any taxable supplies apply for registration to the central registration office through electronic as provided by the board through owner, member or director , as the case may be, such application shall be made in the prescribed form, which shall be submitted, duly filled in as per instructions printed thereon

A. In case of a corporate or non corporate person having a single manufacturing unit or business premises, the regional tax office or large taxpayers unit, as the case may be , in whose jurisdiction the manufacturing unit or business premises is actually located

B. In case of a corporate or non corporate person, having multiple manufacturing units or business premises ,the board may decide the place of registration of such persons

2. Where an applicant has unsold or un used stocks of input on which he desires to claims the benefit of section 59 of the act , he shall declared such stocks in a statement in the prescribed form to be appended with his application for registration.

3.Where the application for registration is complete in all respects, the local registration office shall transmit the same to the central registration office

4. A person who has applied for registration as manufacturer shall be registered after LRO has verified his manufacturing facility.

5. In no case a person required to be registered under the act shall be issued more than one registration number.

Compulsory Registration (rule 6) 1. If a person who is required to be registered

under this act, does not apply for registration and the local registration office or any other office as may authorized by the board or collector after such inquiry as deemed appropriate is satisfied that such person is required to be registered.

2. In case the local registration office receives a written reply from the said person within the time specified in notice ,contesting his liabilities to be registered, the local registration office shall grant such person opportunity of hearing .

3. Where the person to whom a notice is given under sub rule 2 does not respond with in the time specified in notice, the local registration officer shall transmit the particulars of the person to the central registration office which shall compulsorily registered the said person ans allot him a registration number which shall be delivered to the said person either in person through local registration office or through courier service .

4. A compulsory registration person is required to comply with all the provision of the act and rules made thereunder from the date of compulsory registration and in case of failure to do so ,the commissioner inland revenue having jurisdiction may issue notice under section 25 of the act for production of records or documents and appearance in person to assess the amount of sales tax payable under the provisions of section 11 of the act and take any other action as required under the law against such person.

Changes in particulars of registrations1.In case there is a change in the name, address

or other particulars as stated in the registration certificate, the registered person shall notify the change in the prescribed form to the central registration office within 14 days of such change

2.The change of business category as manufacturer shall be allowed after verification by LRO .

3. In case of approval of change applied for the CRO shall issued revised registration certificate,which will be effective from the date the concerned person has applied for the change

4.The change of nature of business (from individual to AOP or corporate person shall be allowed as under namely:

a.In case of tranfer of individual business from any person to his spouse or children ,the change shall be made by LRO on receipts of verification of documents from RTO

In case of change of nature of business from individual to AOP, the change shall be made by LRO on receipt of verification of documents from RTO.

In case of change of nature of business from AOP to corporate entity, the same shall only be allowed by LRO on receipt of verification from RTO or LTU however this change shall only be allowed in case where the same persons who are members of AOP are nominated as directors in the corporate entity

In case of transfer of business or change in nature on any other account , a new sales tax registration number shall be issued to the entity

Transfer of Registration (Rule 8 ) 1.The central registration office

may, may subject to such conditions limitations or restrictions as it may deem fit to impose, by an order transfer the registration of a registered person from the jurisdiction of one collectorate to another collectorate or, as the case may be , to the large tax payers unit or regional tax office

2.On transfer of registrationa.All the records and responsibilities relating to such

registered person shall be transferred to the collectorate or , as the case may be, to the large taxpayer unit or regional tax officer in whose jurisdiction the registration has been so tranfered.

b. The action already taken, being taken or otherwise pending immediately before the transfer in respect of such registered person under any of the provisions of the act or the rule made thereunder in the collectorate rom where his registration has been transfered, the collectorate or, as the case may be , the large tax payer unit

c. The return for the tax period in which the registration is tranfered shall be filled in the collectorate from where the registration is transferred

3.In case of transfer of registration the central registration office shall issue intimation letter to the registered person along with copy to concerned collectorates.

4.In case of registered person intends to shift his business activity from the jurisdiction of one collectorate to another, or he has any other valid reason for such tranfer, he shall apply to the central registration office for transfer of his registration.

Option to file application with LROThe person applying for registration

changes in particulars of registration or transfer of registration may in exceptional cases where he is not able to send such application directly to CRO, file the prescribe application in LRO instead of filling the same in CRO, then LRO forward the case to CRO.

Cancellation of multiple Registration ( Rule 10 )

1.In case a person holds multiple sales tax registrations, he shall retain only one registration and surrender all other registration under intimation to CRO.

2. The tax liabilities against the registrations cancelled in the aforesaid manner shall be transferred against the registration retained and in case of such registrations being in different collectorates, the commissioner having jurisdiction over cancelled registration shall ensure the tax arrear files are transferred to the collectorate having the jurisdiction over the registration so retained.