Unverified invoices: IR Commissioner can seal Tier-1 retailers’ outlets: FBR

ISLAMABAD: The Commissioner Inland Revenue is empowered to seal business premises of big retailers where Tier-1 retailers have either issued three unverified invoices in a day or five unverified invoices in seven days against a single Sales Tax Registration Number (STRN).

According to the Federal Board of Revenue’s new procedure for sealing of business premises of integrated tier-1 retailers, where the Commissioner Inland Revenue has evidence as provided that a tier-1 retailer has either issued three unverified invoices in a day or five unverified invoices in seven days against a single STRN, the Commissioner Inland Revenue shall seek the approval of the Chief Commissioner Inland Revenue in writing for sealing of the retailer’s business premises besides mentioning the team of officers and officials that shall carry out the process of sealing of the said business premises.

In case the unverified invoices belong to business premises of tier-1 retailer having jurisdiction in some other field formation, the Commissioner Inland Revenue concerned shall seek approval from the Chief Commissioner Inland Revenue in whose jurisdiction the integrated tier-1 retailer falls besides mentioning the team of officers and officials that shall carry out the process of sealing of the said business premises.

Non-integrated Tier-1 retailers: Huge penalty to be imposed before outlet de-sealing: FBR

The Chief Commissioner Inland Revenue, in whose jurisdiction the integrated tier-1 retailer falls, shall on receipt of the request for approval issue an order in writing for allowing or disallowing the sealing of such business premises after recording the reasons therein, and, in case of allowing sealing of business premises, shall also notify the team for carrying out the process of sealing immediately.

Provided where the jurisdiction of tier-1 retailer falls in some other field formation, the concerned Chief Commissioner shall request the Board for notification of the team.

The Chief Commissioner Inland Revenue in whose jurisdiction the integrated tier-1 retailer falls shall decide whether one or more branches are to be sealed depending on the unverified invoices issued by the respective branches; and The sealing order shall be communicated by the concerned Chief Commissioner Inland Revenue to the Member (IR-Operations) for information and a copy thereof shall be sent to Chief (POS) for the record, the FBR added.

Copyright Business Recorder, 2022