FBR sources said that the Computerized national identification card (IDC) of the buyer who is shopping for over Rs50,000 would be issued by registered persons who are subject to sales taxes. In their monthly SAT return, which is due on 18 March 2020 for February 2020, registered persons must supplement the CNIC data.
The FBR made it mandatory for sales tax registered persons to obtain CNIC details of unregistered buyers. In this regard an amendment was made to Section 23 of Sales Tax Act, 1990 through Finance Act, 2019.
The condition was made mandatory on supplies from August 01, 2019. However, on the objections from stakeholders including small traders and shopkeepers the condition was deferred till January 31, 2020.
The sources said that the sales tax registered persons are required to obtain CNIC details of buyers from February 01, 2020 and provide the same information to the FBR through monthly returns of February 2020, which is due on March 18, 2020.
They said that the condition is not applicable on ordinary customers.
For the purpose of this clause, ordinary consumer means a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing.
The sources said that in case seller was unable to obtain the CNIC information of buyer then in such case the registered person would be responsible.
However, the FBR through Sales Tax General Order No. 106 dated October 04, 2019 issued clarification regarding CNIC condition.
The FBR clarified that the CNIC/NTN of the buyer with respect to taxable supplies to an unregistered person shall be deemed to have been reported in good faith by the suppliers with conditions that the invoice should complies with statutory requirements.
It is also mandatory that payment made by or on behalf of the unregistered purchaser of the amount of the tax invoice, inclusive of sales tax and applicable further tax, is deposited into the supplier’s declared business bank account.
The CNIC provided by the purchaser is found authenticated by the National Data and Registration Authority (NADRA).
The FBR also barred that CNIC/NTN provided was not of the employee of the seller or of his associates.
The sources said that the tax authorities would impose penalty on registered persons on failure to comply with the requirement of obtaining CNIC.