Businesses not having STRN can not charge sale tax: FBR

Aug 09, 2019: The Federal Board of Revenue (FBR) Friday said a business, which was not registered for sales tax and did not have a 13-digit sales tax registration number (STRN), was not authorized to charge sales tax.

The FBR, in a circular, stated that the general public had lodged complaints against businessmen, who were charging sales tax from consumers without being registered with the board under the Sales Tax Act-1990.

It clarified that STRN (13 digits) was issued to every person, who was registered for sales tax purpose and only that person was authorized to change sales tax on his taxable sales except where goods fall under third schedule to the Sales Tax Act-1990.

"A business which is not registered for sales tax and does not have an STRN is not authorized to charge sales tax on the invoice," the FBR added.

It advised the public that "an invoice which does not bear a valid STRN should not include any sales tax amount and if any sales tax amount is indicated, the customer is entitled to demand a sales tax invoice with STRN printed on it."

The FBR clarified that mentioning of NTN (national tax number) was not a substitute for STRN.

"In order to facilitate the general public and providing a check on abuse of system, FBR has installed a special help line for this matter. The consumers’ are encouraged to send the images of such invoices or report the matter to FBR for action on 111-772-772 or email at stmonitoring@fbr.gov.pk," the FBR circular said.

APP