Sales tax registration: FBR notifies new 'transfer of business' procedure
The Federal Board of Revenue (FBR) has issued procedure for change in nature of business (eg from individual to Association of Person or AOP to company etc) for the purpose of sales tax registration under SRO 589(I)/2012. In this connection, the FBR has issued the procedure on 'transfer of business' under SRO.589(I)/2012 here on Wednesday.
Copyright Business Recorder, 2013
According to the procedure, the taxpayers would be registered for Income Tax through a unified taxpayer registration form (TRF-01/STR-01) as one of three types of persons namely, individual, Association of Persons (AOP) or company. Each person (Individual, AOP or company) is identified by his unique identifier which is National Tax Number (NTN). The NTN to individual is issued on the basis of CNIC and to a company on the basis of Incorporation Number issued by the Securities and Exchange Commission of Pakistan (SECP).
In order to implement Sub Rule (4) of Rule 7 of Sales Tax Rules, 2006, which was added vide SRO.589(1)2012 dated 01-06-2012, for change of nature of business, following procedure shall he adopted: From AOP to Company or vice versa: An application on STR-01 form will be submitted manually to the Local Registration Office (LRO) along with an affidavit jointly signed by all the partners confirming the dissolution of the AOP and requesting for changing the status of the AOP to the Company. The LRO will forward the application along with NOC for change of status from AOP to company to Manager E-Registration, PRAL for updating status in the system. In case any fresh NTN has already been obtained by the company, the same shall be surrendered by the applicant and it will be cancelled from the registration system. PRAL shall establish a link between all the declarations filed earlier by the taxpayer in its capacity as AOP with those to be filed in future as Company. This link will be available in the e-folders of both the taxpayer and tax officer. In case of online NTN inquiry, relevant remarks will be displayed under the name of company.
Pakistan Revenue Automation Limited (PRAL) will also make necessary changes in tile database so that the taxpayer is able to electronically tile all the declarations in its capacity as AOP and Company according to tile corresponding tax periods, FBR said.
2. From one individual to another Individual: An application on STR-01 form will be submitted manually to the Local Registration Office (LRO) along with an affidavit jointly signed by both the individuals requesting for transfer of business from one Individual to the other Individual. The LRO will forward the application along with NOC for transfer of business from one Individual to the other Individual to Manager E-Registration, PRAL for changing ownership in the system. New NTN will be issued to the taxpayer, if already not issued. The business name from the old NTN will be closed w.e.f the date of transfer of business to the new NTN. The relevant message will be displayed in the online e-inquiry of NTN.
A link between the new NTN and old NTN will be created in the e-folder of the taxpayer as well as tax officer. 3. As CNIC is a permanent identity of a citizen of Pakistan and it is not allotted to any other individual, therefore the NTN issued against the CNIC shall not be allotted to an AOP, FBR added.