The Federal Board of Revenue (FBR) has decided to introduce the concept of temporary sales tax registration in budget (2015-16) to facilitate the business community, seeking new sales tax registration numbers (STRNs). Sources told Business Recorder here on Saturday that through Finance Act 2015, the FBR will amend the Sales Tax Rules to introduce a new concept of temporary registration as a facilitation measure for the business and trade intended to operate under the documented regime.
The FBR has observed that due to delay in registration process, especially for manufacturers, temporary registration may be allowed to them. The temporarily registered persons shall be able to import goods but not able to issue invoice. The registration shall be regularised after due verification, sources added. According to the report of the Tax Reform Commission on budget recommendations, at present supply of taxable goods without getting registration with FBR is treated as ''tax fraud'' on the part of supplier. Therefore a genuine businessman is facing problems to commence his business till the time he is awarded his sales tax registration number.
It is recommended that registration mechanism should be further streamlined within the FBR. To provide safeguard to genuine businesses from tax fraud, the concept of provisional certificate may be introduced whereby anyone applying for registration may be allotted a provisional certificate to facilitate his business activity till he is allotted a permanent registration number. A genuine businessman faces problems to commence his business till the time he is awarded sales tax registration number. On the contrary, supply of taxable goods without getting actually registered could penalize him with the most serious offence of ''tax fraud'' under the Act, the TRC added.
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