Sales Tax Return Filing in Pakistan
Filing sales tax return is mandatory in Pakistan. The question is who is required to file sales tax return and how often. Curious to know more? well, in this post, we are going to explain it in detail for you. keep reading!
Who Should File Sales Tax Return
Every person who has obtained sales tax registration number from Federal Board of Revenue (FBR) Pakistan, under the Sales Tax Act, 1990 or the Federal Excise Act, 2005, is legally bound to file the return.
What is Sales Tax Return?
A Sales Tax return is the taxpayer’s declaration. Through this return, taxpayer furnishes the details of his financial transactions during a tax period and deposits his Tax liability as well. Normally a tax period spans over a calendar month.
On the return form for a particular tax period, the taxpayer declares respective input tax and output tax at the prescribed rate. In case input tax exceeds output tax, the amount of refund claimed or excess input tax is also declared in the return.
No of Returns if Businesses are More Than One
A registered person is required to file a single return for all the possible sectors he/she is operating in.
Late Filing of Return
Sales Tax Law requires you to file your monthly return by 15th day of the following month. For instance, you need to file the return for the month of October 2022 by 15th of November 2022. If you are are unable to file by the deadline, still you can file with late payment fee and /or penalty specified in the law till next six months. You need not require any permission from any authority for late filing within six months.
Filing Return After Six Month of Due Date
In cases where a VAT Return is not filed within a period of six months after the due date, the same can be filed only after approval of the Commissioner Inland Revenue having the appropriate jurisdiction.
Revision of Return
After filing your return, you realized that there was some mistake or omission in the document; you can revise the return to correct wrong declaration or any omission.
Here are two conditions attached with this relaxation. First is time bound and the second is permission form the FBR.
Firstly, time window is restricted to six months (120 days) . You need to complete this process within one hundred and twenty days from the due date of return. Secondly, you need to obtain permission from your relevant Commissioner Inland Revenue.
Although preparation and filing sales tax return is a complicated affair, yet you may try it out yourself. If you are hesitant or feel difficulty or find that the thing is above your head, you may obtain our paid service. Alternatively, you have the option to hire any other professional from Fiverr or Upwork.
Hope this post is worth your time and you have benefitted from it.
