Are you Tier 1 Retailer, if so, avoid reduction in input tax, penalty and getting seal of Business premises?
If you are Tier 1 Retailer, then you must install POS (Point of Sale Software) and integrate with FBR, in order for monitoring, tracking, reporting or recording of sales, production and similar business transactions with the FBR
Penalty for non-compliance
Any person, who is required to have POS and is required to integrate his business with the FBR or its computerized system, fails to get himself registered under the Sales Tax Act, then it will result a reduction in input tax by 60% and may result a penalty of Rs. 1 million and FBR may seal business premises for continuous default.
Who is Tier 1 retailer:
“Tier-1 retailer” means a retailer falling in any one or more of the following categories, namely:-
- A retailer operating as a unit of a national or international chain of stores;
- A retailer operating in an air-conditioned shopping mall, plaza or center, excluding kiosks;
- A retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rs. 1,200,000;
- A wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on a wholesale basis to the retailers as well as on retail basis to the consumers
- A retailer, whose shop measures 1000 square feet in area or more or 2000 square feet in area or more in the case of retailer of furniture
- A retailer who has acquired point of sale for accepting payment through debit or credit cards
- Any other person or class of persons as prescribed by the Board.