FBR issues SRO: Retailers face the grim prospect of premises sealing

ISLAMABAD: The Federal Board of Revenue (FBR) has expanded the scope of sealing of business premises of Tier-I retailers. The FBR has issued an SRO164(I)/2025, here on Monday to amend the Sales Tax Rules, 2006.

According to the notification, the business premises would be sealed in cases where retailer is involved in issuances of unverified invoice or if store becomes disconnected with the FBR data base for 48 hours or invoices of offline period not entered in the system in next 24 hours or device does not keep record of invoices during offline period, as the case may be.

The rules further revealed that the business premises of the registered person may be sealed on any of the said violations made by the registered person.

The FBR has also notified the procedure for de-sealing of business premises of integrated Tier-I retailer. Where a business premises has been sealed under rule l50ZF-O the following procedure for de-sealing thereof shall be adopted.

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The Commissioner Inland Revenue having jurisdiction over the case shall impose a penalty by passing an order as provided under serial No 24 of Section 33 of the Sales Tax Act.

The de-sealing order of the business premises shall be issued by the concerned Commissioner Inland Revenue within 24 hours of the payment of penalty and the demand created during audit. Nothing shall impede de-sealing of the business premises provided that the software bug has been removed and all requirements of Chapter XIV-AA of Sales Tax Rules 2006 have been fulfilled by the integrated tier-I retailer.

The registered person may file appeal against the order. The Commissioner Inland Revenue shall ensure software audit through an integrator of all POS machines installed in all the branches of such retailer within three working days after de-sealing of the business premises.

The Commissioner Inland Revenue shall ensure to record the sale during that period. The Commissioner Inland Revenue shall ascertain the exact quantum of under-declared sales as a result of software audit and create a demand of tax sought to be evaded.

In case of non-payment, de-sealing shall be done after a month and business premises shall be re-sealed after 15 days if default continues.

The Commissioner Inland Revenue having jurisdiction shall impose a penalty by passing an order prescribed under serial No 25A of Section 33 of the Sales Act, the FBR rules added.

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