ISLAMABAD: The Federal Board of Revenue (FBR) has clarified that the cash discount given by retailers to the end-consumers has to be depicted on the standardised sales tax invoice.
According to the FBR's clarification on the issue of discount on the standardised tax invoice as per SRO1006(I)/2021, here on Thursday, the FBR's instructions revealed that the board, vide SRO 1006(1)/2021 dated 9 August 2021, specified a standardised format for sales tax invoice detailing minimum requirements for the integrated Point of Sale (PoS) systems.
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The definition of trade discount as mentioned in the value of supply in sub-section(46) of Section 2 of the Sales Tax Act, 1990 is meant for business-to-business transactions and does not cover retail sector and the business-to-consumer transaction. Various representations from the taxpayers and Bar Councils have been received by the board seeking clarification of the term "trade discount" as stated in sub-section (46) of Section 2 of the Sales Tax Act, 1990, whether, the term also covers "cash discount" given by retailers to end consumers, for the purpose of depiction in the standardised sales tax invoice under SRO 1006(1)/2021 dated 9 August 2021.
Copyright Business Recorder, 2021
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