The Federal Board of Revenue (FBR) has decided to impose a Rs 5,000 penalty on registered persons in case of providing fake national tax number (NTN) and computerised national identity card (CNIC) number of unregistered persons in sales tax return. Sources told Business Recorder on Wednesday that under SRO 821(I)/2011, it was necessary for the registered firms to provide NTN/CNIC number of unregistered persons, in case of sales to them, from January 2012.
However, FBR, accepting the demand of the business community, relaxed the condition of providing NTN/CNIC number of the unregistered buyers/sellers in the monthly sales tax return submitted by the registered persons. The relaxation has been granted for two months, and now the registered manufacturers, importers and exporters can submit their sales return of January and February 2012 without any CNIC number or NTN of unregistered persons.
However, sources said, FBR has decided to implement the condition of NTN/CNIC number in a phased manner, starting from April 2012, in which March sales tax return will be submitted, registered manufacturers, exporters and importers will be required to show a minimum 60 percent of the sales to identifiable persons, which NTN/CNIC number should be provided in the sales tax return. Monthly, 10 percent will be increased in the total sales for NTN/CNIC number condition and, finally in August 2012, in which July 2012 sales tax return will be submitted, 100 percent of the sales is to be shown to the identifiable persons whose NTN/CNIC number will be provided in the sales tax returns.
Overall, FBR has relaxed the condition of CNIC number/NTN for six months and after that it will be implemented in full manner. The board has also decided to impose fine on those registered manufacturers, importers and exporters, who will submit fake/false NTN/CNIC number to fulfil the FBR formality.
Sources said that FBR will verify the NTN/CNIC number data from its own and Nadra data base to confirm that the given details are true or false. "FBR has proposed a penalty of Rs 5,000 for each wrong CNIC number/NTN submitted by registered person, which will also include in the arrears appearing in the sales tax return. The notification to implement this would be issued soon.
It may be mentioned here that the side condition was to implement from January this year, however on the request of manufacturers, importers and exporters the FBR has extended its implemented. Since the issuance of SRO 821(I)/2011 on September 06, 2011, registered manufacturers, importers and exporters were striving hard for relaxing the condition of mentioning NTN/CNIC number in the sales tax return submitted by registered persons.