ISLAMABAD: To avoid cash transactions, the Federal Board of Revenue (FBR) has directed all integrated Tier-I retailers (big retail outlets) to ensure installation of debit/credit card machines.
In this connection, the FBR has issued circular No 05 of 2022 on the POS integrated retailers — Implementation of Rule 150ZEB (II) of the Sales Tax Rules, 2006.
The FBR said that the all Tier-I retailers as defined in section 2(43A) of the Sales Tax Act, 1990 are expected to maintain highest standards of documentation, reporting, and transparency.
In their endeavours to achieve such high standards, they are integrated with the FBR’s IT system for real-time reporting of their economic transactions.
It has transpired that many an integrated Tier-I retailer indulge in making cash transactions, which militates not only against the overall scheme of things, but also the intended objectives.
In this connection, it is pertinent to note that Rule 150ZEB(II) of the Sales Tax Rules, 2006, mandates that each Tier-I retailer “must have the facility of debit and credit card machine installed at each notified outlet and the sales through debit or credit cards shall not be ordinarily refused.”
Accordingly, all integratable Tier-I retailers are liable to have debit/credit card machine installed at their outlets and the IRS Field Formations to ensure implementation of the rules in this respect, the FBR added.
Copyright Business Recorder, 2022