Telecom companies ST data: FBR to revise Annex-P of proposed return form

The Federal Board of Revenue has decided to revise the Annex-P of the proposed sales tax return form to simplify procedure for submission of sales tax data on services by telecommunication companies.
Sources told Business Recorder here on Saturday that the Board is likely to allow the telecommunication companies to provide province-wise break-up of services on annual basis instead every month to facilitate such companies to determine the share of each province regarding sales tax collected on these services.
The FBR has decided to amend the Annex-P of the proposed sales tax return form taking into account the suggestions of the telecom companies. The return form would be further simplified for the telecom companies. In this regard, the FBR is examining the suggestions of the telecom companies for incorporating changes in the Annex-P of the return.
At present, Annex-P would be mandatory for telecom sector only but other registered persons may also provide this detail. One of the suggestions of the telecom companies is to provide province-wise break-up of services on annual basis instead of monthly basis. It would be difficult for the telecom companies to compile such data every month for which change in date for compilation of data by telecom companies is expected in the final sales tax return form. The FBR may allow interval in submission of such data by the telecom companies. The FBR may incorporate changes in the Annex-P of the proposed sales tax return to be notified. Another change expected in the proposed Annex-P of the sales tax return is that the FBR may fix a percentage of sales tax for the purpose of revenue share instead of province-wise breakup of services.
Under the proposed return form, the Board has decided to make it mandatory for the telecommunication companies to provide province-wise break-up of services which would enable the federal tax authorities to determine the share of each province regarding sales tax collected on these services.
A new annex titled as "Annex-P" is provided in the new return form in which the registered person will provide province-wise break-up of services rendered which will be initially applicable to telecommunication companies and may be extended to other similar sectors on need basis. It will help in implementing the decision made by federal and provincial governments for handling the services provided across the provinces.
As per proposed form, the telecom companies would be required to give information about province-wise value of services and sales tax charged on the basis of province from where outbound (outgoing) call is made. Instead of introducing an entirely separate return for telecom sector, an annexure has been introduced in the existing sales tax and federal return form. This data would enable the FBR to determine the share of each province regarding sales tax collected on telecom services, sources added.
As per new return form, on the basis of required information, the tax paid by the service provider (telecom companies) will be proportionately distributed among the provinces. The tax share will be credited to the designated account of the provinces which will be reflected in the Main Page of the ST&FE Return, on computerised payment receipt (CPR) as well as in the bank scroll, the FBR added.