FBR asked to ensure purchases from registered vendors.

ISLAMABAD -- The Friends of Economic and Business Reforms (FEBR), on Saturday appealed the FBR to restrict the retailers to make their purchases only from sales tax registered persons for their income tax returns instead of binding the manufacturers for their sale only to registered suppliers and retailers.

According to the press release, the condition of CNIC demanding from retailers is adding tensions for registered manufacturers leading to huge drop in their sale, grinding business activities to a halt.

FEBR President Kashif Anwar, in a letter to FBR Chairman Shabbar Zaidi, has reiterated his demand that the supplies shown by sales tax registered entities in their sales tax returns should be automatically shown as purchases are shown in the annual business income tax returns of those who are only registered in Income Tax.

This will complete the supply chain from sales tax registered suppliers to the Income Tax registered purchasers, he added.

'With regard to purchases made by all retailers, suppliers, agents and others not registered in sales tax, we request that they may be enjoined to make purchases from sales tax registered persons for their businesses income tax returns. As in case of sales tax registered persons, all purchases are automatically shown in Annex-A (Domestic Purchase Invoices) and Annex-B (Imports) to avail the benefits of input sales tax, similarly the purchases made by retailers, individuals and others not registered in sales tax must be automatically shown in their annual income tax returns against their NTN's.'

The law has made it mandatory for every sales tax registered person either manufacturer, importer, dealer, distributor, wholesaler or retailer to mention sales tax registration number, national tax number or CNIC on sales tax invoice above Rs 50,000 value to feed Annex-C (Domestic Sales Invoices) of sales tax return which automatically verifies the particulars of...