As an LPG retail seller registering for STRN, what sales tax, WH tax, FED or any duties apply Please cite relevant laws.

Question

I am a retail seller of LPG (Gas) to household customers and i am going to register myself STRN. I want to ask what is sales tax percentage and, what withholding tax applies, and whether any other cess or fed/duty applies???? Please tell the relevant acts also.
I am purchasing it locally.

Answer 1

For a retail seller of locally purchased LPG registering for an STRN, the following taxes and duties apply under the Sales Tax Act, 1990, the Income Tax Ordinance, 2001, and the Federal Excise Act, 2005:

• Sales Tax: The standard rate is 18% on the value of the supply. If you sell to unregistered persons, a Further Tax of 4% may also apply.
• Withholding Tax (Income Tax): Under Section 236H of the Income Tax Ordinance, your suppliers (wholesalers/distributors) must collect advance tax from you at 0.5% if you are on the Active Taxpayer List (ATL) or 2.5% if you are not.
• Federal Excise Duty (FED): LPG is subject to FED under the First Schedule of the Federal Excise Act, typically at a rate of Rupees sixty per hundred metric tonne.
• Petroleum Development Levy (PDL): You are liable for the PDL, which is calculated based on notified per-liter rates issued by the government.
• Tier-1 Retailer Requirement: If you meet the criteria for a Tier-1 Retailer, you must integrate your sales system with the FBR's computerized system. Failure to integrate results in a 60% disallowance of your adjustable input tax.