1. All importers
2. All wholesalers (including dealers) and distributors
3. Manufacturers not falling in cottage industry. {Cottage industry means a manufacturer whose annual turnover from taxable supplies made in any tax period during the last twelve months ending any tax period does not exceed [ten] million rupees or whose annual utility (electricity, gas and telephone) bills during the last twelve months ending any tax period do not exceed [eight] hundred thousand rupees;}
4. Retailers (Tier-1 retailers means:
   1. A retailer operating as a unit of a national or international chain of stores;
   2. A retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks;
   3. A retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rupees six hundred thousand; and
   4. A wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers;)
5. A person required under any Provincial or Federal Law to be registered for purpose of any duty or tax collected or paid as if it were a levy of sales tax, e.g. service providers like hotels, clubs, caterers, customs agents, ship chandlers, stevedores, courier services etc.
6. Persons making zero-rated supplies, including commercial exporter who intends to obtain sales tax refund against his zero rated supplies.
7. A person who is required to be registered by virtue of aforesaid criteria, but still avoids registration, can be compulsorily registered by the department, after proper enquiry, under sub- rule 1 of Rule 6 of Sales Tax Rules, 2006.

SALES TAX REGISTRATION BASICS

The first step before filing your Sales Tax Return is to get yourself registered with Central  Board of Revenue (CBR).

The registration with CBR provides you with a Sales Tax Registration Number (STRN) or User ID and password. These credentials allow access to efile portal, the online portal for filing Sales Tax Return.

Online Sales Tax Return can only be filed while logging into efile portal.

The Automated System for Sales Tax Registration will be effective from July 1^st, 2022, allowing for registration of the person for Sales Tax through the Iris Portal .

Only those persons having active Iris Portal credentials can Register for Sales Tax.

PROCEDURE OF REGISTRATION

The person shall use their Iris Portal credentials to login into Iris Portal. Once logged in, the person shall select Form 14(1) (Form of Registration filed voluntarily through Simplified) (Sales Tax) from the Registration drop down menu.

On selection of Form 14(1) (Form of Registration filed voluntarily through Simplified) (Sales Tax), the person will be asked to furnish the following information:

• Tax Period
• Sales Tax information, in case of:
  • Individual, the type of registration, whether it is a Manufacturer or Non-Manufacturer
  • AOP or Company, CNIC of the Member/Director/Principal Officer along with the type of registration, whether it is a Manufacturer or Non-Manufacturer
• Bank Account details that include the Bank Account Certificate issued by the bank in the name of the business
• Business details including Business Name, Acquisition Date, Capacity and Business Activity along with particulars of all branches in case of multiple branches at various locations
• GPS-tagged photographs of the business premises
• Registration / consumer number with the gas and electricity supplier along with pictures of utilities meter
• In case of Manufacturer, also the GPS-tagged photographs of machinery and industrial electricity or gas meter installed

On submitting the above information and documents, the system shall register the person for Sales Tax.

BIOMETRIC VERIFICATION

After registration, the person registered through Iris Portal is required to visit e-Sahulat Centre of NADRA within 30 days for biometric verification. In case of failure to visit or failure of verification, the registered person’s name shall be taken off the Sales Tax Active Taxpayer List.

There are number of NADRA e-Sahulat Centers to facilitate the applicant for biometric verification.

POST VERIFICATION – MANUFACTURER

In case of manufacturer, the Board may require post verification through field offices, or a third party authorized by the Board. In case, the field office, during scrutiny after the registration, finds that any document provided is non-genuine / fake / wrong, it may request through the system, to provide the missing document, in fifteen days, failing which the registered person shall be taken off from the Sales Tax Active Taxpayer List.

CHANGE IN PARTICULARS OF REGISTRATION

In case there is a change in the name address, or other particulars as stated in the registration certificate, the registered person shall notify the change in the prescribed form to the Tax Office within fourteen days of such change.

The change in the business category shall be allowed after Tax Office has verified the manufacturing facility and confirmed the status as industrial consumer of the electricity and gas distribution companies.

TRANSFER OF REGISTRATION

In case a registered person intends to shift his business activity from the jurisdiction of one Tax Office to another Tax Office or as the case may be to a Tax Office , or he has any other valid reason for such transfer, he shall apply to the Tax Office for transfer of his registration.

The Tax Office may subject to such conditions, limitations or restrictions as it may deem fit to impose, by an order , transfer the registration of a registered person from the jurisdiction of one ?TO/RTO/LTU, to another TO/RTO/LTU, or as the case may be to the LTU or RTO.

The return for the tax period in which the registration is transferred shall be filed in the RTO/LTU from where the registration is transferred.

REVISED REGISTRATION CERTIFICATE

In case of multiple registrations, the registered person shall apply to RTO/LTU for single registration to the RTO/LTU which after ascertaining tax liabilities from concerned RTO/LTU shall issue revised registration certificate in which previous registration number shall be merged.

DEREGISTRATION

To deregister a person shall submit an application to Commissioner Inland Revenue having appropriate jurisdiction. Within ninety days from the date of such application or the date all the dues outstanding against such person are deposited by the person, whichever is later shall cause the person to be de-registered through the computerized system.

Following persons can be deregistered:

• Who ceases to carry on the business, or
• Whose supplies become exempt from Sales Tax, or whose turnover becomes less than the threshold level can apply for cancellation of the registration