Islamabad, Feb 24 (Aqeel A. Rajpar): The Value Added Tax (VAT) Act, 2010 will replace the current GST system after been approved from Parliament and will enforce in the country on July 1 this year, FBR Chairman said.
The Federal Board of Revenue has published the draft of the VAT to apply a tax on sales and purchases and terminal taxes on goods, carried through railways, sea or air.
According to the draft, provincial VAT law and the federal VAT operate together as an integrated tax regime.
According to the draft, a person is necessary to be registered from a particular day in any month if the person exceeds the registration threshold in the period of 12 months, the total value of supplies made, or to be made, by the person in the course of an economic activity during that period is equal to or greater than Rs75, 000.
A person will apply for registration as per the mode, defined by the FBR no later than 15 days before the day on which the person becomes eligible for registration.
A serial number will be issue to the registered people for true and correct tax invoice for the supply. If a registered person, who makes a taxable supply of an amount not more than Rs25, 000 to a non register person may issue a sales receipt for the price of the supply.
The Inland Revenue officer will have the same powers of civil judge or magistrate for the purpose of recovery of unpaid amounts of tax recoverable under the act or the rules made there under.
The Revenue officer may conduct audit, of any registered person by giving advance notice provided that such notice may be give out with by the commissioner where tax fraud is suspected.
VAT will not enforce on these imports and supplies: unprocessed peas, wheat and wheat flour; ice and waters excluding those for sale under brand names or trademarks; table salt including iodized salt excluding salt sold in retail packing bearing brand names and trademarks; books (including brochures, leaflets and similar printed matter, children’s picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising; the Holy Quran in whatever form or on whatever media; diapers for adults (patients); ambulances and fire-fighting trucks; dextrose and saline infusion giving sets along with empty non-toxic bags for infusion solution, and dextrose and saline infusion giving sets; and artificial body parts. ###
No comments:
Post a Comment