Attention, Tier-I Retailers! New FBR Notification Sets Threshold for Additional Requirements

This news directly impacts Tier-I Retailers in Pakistan who have been juggling their sales tax responsibilities. On December 21st, 2023, the Federal Board of Revenue (FBR) issued a notification amending the Sales Tax Rules, 2006, specifically Chapter XIV-AA and rule 150ZEA.

Think of this amendment like a new checkpoint on your retail journey. If you cross a certain threshold, you’ll encounter some additional requirements. But don’t fret, let’s break it down step-by-step:

The Checkpoint: The crucial aspect of this notification is the “prescribed threshold” for Tier-I Retailers. This threshold isn’t based on your sales volume or even the number of customers you charm. Instead, it focuses on your deductible withholding tax under section 236H of the Income Tax Ordinance, 2001.

Crossing the Line: So, how high is this checkpoint? Buckle up, Tier-I Retailers, because if your deductible withholding tax surpasses Rs. 100,000, then bingo, you’ve crossed the threshold! Remember, it’s the deductible amount, not the total collected tax.

Crossing the Rs. 100,000 threshold means encountering additional requirements outlined in sub-clause (g) of clause (43A) of section 2.

No need to panic, Tier-I Retailers! This notification is simply a change in the game, not a game-over. With the right guidance, you can navigate this new checkpoint and continue thriving in the retail world.

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