Registration, Voluntary Registration and De-registration Rules, 1996

GOVERNMENT OF PAKISTAN CENTRAL BOARD OF REVENUE Islamabad, the 1st July,1996. NOTIFICATION SALES TAX S.R.O. 550(I)/96.- In exercise of the powers conferred by section 50 of the Sales Tax Act, 1990, read with sections 15 to 21 and 28 thereof, the Central Board of Revenue is pleased to make the following rules, namely- 1. Short title, application and commencement.- (1) These Rules may be called Registration, voluntary Registration and De-registration Rules, 1996. (2) These shall apply to all persons who:- (a) are required to be registered under section 14 of the Act; (b) opt for voluntary registration; (c) Omitted (d) are liable to be de-registered under section 21 of the Act. (3) These shall come into force on the first day of July,1996. 2. Definitions.- For the purposes of these Rules,- (a) "Act" means the Sales Tax Act,1990; (b) "Annex" means the annex appended to these Rules; (c) "application for registration" means application for registration of taxpayers in the form at Annex "A"; and (d) "registration certificate" means a certificate of registration as at Annex "B". 3. Application for registration.- (1) A person liable to be registered under section 14 of the Act or who opts for voluntary registration shall apply for registration in form at Annex ‘A’ which shall be submitted to the Collector having jurisdiction of the area where his place of business is located: Explanation. - For the purposes of this rule the expression “place of business” means,- (a) in the case of public limited companies, quoted on stock exchange, the place where the registered office of such company is situated: Provided that in case of such listed public limited companies whose registered premises and manufacturing premises are situated in different Collectorates, audit under section 25 and section 38 read with section 40A of the Act, may also be carried out by the Collectorate where the manufacturing premises are located; and (b) in the case of other persons and companies, liable to registration,- (i) if the company is primarily engaged in manufacturing or processing, having single unit, the place where the factory is situated; (ii) if the company is primarily engaged in business other than manufacturing or processing, the place where such business is actually carried on; and (iii) in case a company runs different branches, divisions or manufacturing units at more than one place, the place where company is assessed for income tax purposes. (2) Where the application for registration is complete in all respects, the applicant shall be registered and a certificate of registration containing his registration number will be issued to him as in Annex "B". (3) Where an applicant has unsold or un-used stock of tax-paid inputs on which he desires to claim the benefits in accordance with section 59 of the Act, he shall declare such stock to the Collector in a statement in the form, set out at annex-C, to be appended to his application for registration. 4. Omitted. 4A. Compulsory registration:- (1) Wherein the opinion of an officer not below the rank of Assistant Collector any person is liable for compulsory registration under section 19 of the Act, he may issue notice to such person in the form set-out at annex-D. (2) In case the officer, issuing the notice, receives written reply from the said person within the time specified in notice, contesting his liability to registration, he shall grant the person an audience and, after hearing him, shall decide whether such person is or is not liable to compulsorily registration. A copy of that decision shall be given to the said person. (3) Where the person to whom a notice has been given under sub-rule (1), does not respond within the time specified in the notice, the officer issuing the notice may compulsorily register the person and allot him a registration number. 5. De-registration.- (1) A registered person is liable to be de-registered if- (a) he ceases to carry on his business; (b) his supplies are no longer chargeable to sales tax; (c) his turnover during the last twelve months in case of a manufacturer, is below one million rupees and in case of a retailer, is below Twenty million Rupees; or (d) he fails to file Sales Tax Return consecutively for six months. (2) A person liable to be de-registered under clause (a), (b) or (c) of sub-rule(1) shall make an application to the concerned Collector of Sales Tax specifying therein the grounds for de-registration. (3) On receipt of application under sub-rule (2), an officer not below the rank of an Auditor or Deputy Superintendent of Sales Tax shall be assigned to visit the registered office or the business premises of the registered person, wherever the records are kept, and examine, inspect and Audit the relevant records and also to verify the physical stocks of taxable inputs and taxable supplies made so as to ascertain whether the applicant qualifies for de-registration. (4) If, on the basis of inquiry under sub-rule(3), the concerned Collector of Sales Tax is satisfied that the applicant is liable to be de-registered, he shall direct him to furnish a final return in respect of his taxable activity. (5) The final return, submitted under section 28 of the Act, shall be examined and if the concerned Collector of Sales Tax is satisfied that the applicant has settled his tax liability, he shall be de-registered with in the period specified under sub-section (1) of section 21 of the Act. (6) In case the applicant is to be de-registered due to cessation of business or his supplies are no longer chargeable to tax, he shall be de-registered from such date as may be determined by the concerned Collector of Sales Tax but not later than the period specified under sub-section (1) of section 21 of the Act. (7) In case a manufacturer seeks de-registration on the ground that his turnover has fallen below one million rupees he shall be de-registered from the beginning of next financial year in accordance with sub-section (2) of section 21 of the Act. (8) A person liable to be de-registered under clause (d) of sub-rule (1) shall be served with a show cause notice asking him to explain as to why he should not be de-registered and after giving him an opportunity of being heard, the concerned Collector of Sales Tax may de-register him without prejudice to any other action which may be taken under any other provision of the Act. 6. Transfer of registration. (1) The Board may, subject to such conditions, limitations and restrictions as it may deem fit to impose, on its own motion or otherwise, by notification in the official Gazette, transfer the registration of a registered person from the jurisdiction of one Collector to another Collector or, as the case may be, to the Director General of Large Taxpayers Unit. (2) On transfer of registration,- (a) all the records and liabilities relating to such registered person shall be transferred to the Collector or, as the case may be, to the Director General of Large Taxpayers Unit to whose jurisdiction the registration is so transferred ; and (b) the Collector, or as the case may be, the Director General of Large Taxpayers Unit, in whose jurisdiction the registration is so transferred shall, notwithstanding the actions already taken, being taken or otherwise pending immediately before the transfer in respect of such registered person under any of the provisions of the Act or the rules made thereunder in the Collectorate from where his registration has been transferred, exercise jurisdiction over such person in the manner as if he always had such jurisdiction. (3) The Collector or, as the case may be, the Director General of Large Taxpayers Unit, to whose jurisdiction the registration of a person is transferred shall, after such enquiry as he may deem fit, issue a new certificate of registration in lieu of the previous certificate and such new certificate shall contain a reference to the previous certificate of registration. (4) The registration transferred under this rule shall be cancelled in the computer database of the Collectorate wherefrom such registration is transferred and entry shall be made showing the date of such cancellation, new address and new registration number of the registered person and corresponding cross-entries shall be made in the computer database of the Collectorate or, as the case may be, Large Taxpayers Unit to whom the registration has been transferred. Lutfullah Virk Secretary (Sales Tax) Amended vide SRO 510(I)/1997 dated 08.07.1997 Amended vide SRO 786(I)/1998 dated 09.07.1998 Amended vide SRO 680(I)/1999 dated 12.06.1999 Amended vide SRO 402(I)/2001 dated 18.06.2001 Amended vide SRO 339(I)/2002 dated 15.06.2002 Amended vide SRO 504(I)/2003 dated 07.06.2003 Amended vide SRO 769(I)/2003 dated 06.08.2003 Annex - A GOVERNMENT OF PAKISTAN APPLICATION FOR REGISTRATION UNDER SALES TAX ACT, 1990 (FOR CORPORATIONS/COMPANIES/FIRMS/HUFs/AOPs/INDIVIDUALS/OTHER BUSINESSES) The form may be filled in accordance with the appended instructions (This form may be used both for New and Existing Taxpayers) (Additional sheets may be attached if required) ------------------------------------------------------------------------------------------------------------------------------------------------------- PART - A (01) NATIONAL TAX NUMBER (NTN) (02) SALES TAX REGISTRATION NO. (To be filled by Existing Tax payers and by Re-registrants) (03) IMPORT REGISTRATION NO. ========================================================================================= PART - B (04) BUSINESS NAME_________________________________________________________ (05) ADDRESS OF REGISTERED HEAD OFFICE___________________________________ ________________________________________________________________________ (06) CITY ___________________ POST CODE ____________ (07) Tel No.__________________ FAX No._______________ (08) ADDRESS OF ALL THE PREMISES OF THE BUSINESS ACTIVITIES_______________ ____________________________________________________________ (09) ADDRESS WHERE BUSINESS RECORDS ARE KEPT __________________________ (If different from 08 above) ________________________________________________________________________ (10) CITY ____________________________ POST CODE ____________________ (11) Tel No.____________________ Fax No.___________________ =================================================================================== PART - C (12) BUSINESS ACTIVITY ________ Manufacturer ________ Importer ________ Exporter ________ Distributor ________Wholesaler ________Retailer _______ Ship Breakers Note: In case of more than one activities, please tick ( ) all applicable boxes. (13) PRINCIPAL BUSINESS ACTIVITY (Please tick ONLY ONE of the categories below): Manufacturer/Importer/Exporter/Distributor/Wholesaler/Retailer/Ship Breakers (14) PRIMARY PRODUCT MANUFACTURED/SOLD/IMPORTED/EXPORTED ETC. Product __________ PCT Code (For official use) ___________________________________ ========================================================================================= PART - D STATUS (Only one of the Column from Column (15) to Column (21) is required to be filled, the remaining may be left blank or cut off) (15) INDIVIDUAL a. National Identity Card No. _____________________________________ b. Date of commencement of business _____________________________ c. Initial Capital employed Rs. ______________________ (16) _________ AOP/HUF a. Date of constitution_______________________________________ b. Initial Capital employed Rs. ________________________________ c. No. of members _________________________________________ d. Date of Commencement of Business ________________________ (17) ______________ REGISTERED FIRM (18) _____________ UNREGISTERED FIRM a. Date of registration of deed _______________________________ b. Date from which partnership was effective _____________________ c. No. of Partners d. Initial Capital employed Rs ___________________________. e. Date from which registration is granted by Income Tax Department___________ (In case of registered firms only) f. Date of Commencement of Business _____________________ (19) _________ COMPANY a. Company Registration No. _____________________________ b. Date of incorporation c. Limited by share ____________ OR by guarantee d. Issued/Paid up Capital Rs. ______________________________ e. Date of commencement of business __________ f. TYPE OF COMPANY (Please tick ( ) one of the relevant box applicable below) domestic public company corporate body formed under any law in force in Pakistan Foreign Company ________ Domestic Pvt. Ltd. Company Listed on Stock Exchange _______ Domestic unlisted public company Trust ________ Other (20) _________ LOCAL AUTHORITY (21) ______ ARTIFICIAL JURIDICAL AUTHORITY ================================================================================================ (* (For Official Use) PART-E (Please fill in relevant option (s) below) (20) GOODS SUPPLIED AS MANUFACTURER: P.C.T. Code a. ______________________________ b. _______________________________ c. _______________________________ d. _______________________________ (21) GOODS EXPORTED: a. _______________________________ b. _______________________________ c. _______________________________ d. _______________________________ (22) GOODS SUPPLIED AS IMPORTER, WHOLESALER, DISTRIBUTOR, RETAILER or SHIP BREAKER: a. _______________________________ b. _______________________________ c. _______________________________ d. _______________________________ ========================================================================================================= (23) SALES VALUE DURING LAST 12 MONTHS (Rs.)_________________________________________ ========================================================================================================= DECLARATION I,____________________ solemnly declare that to the best of my knowledge & belief, the information given above is correct & complete and I have not been allotted any Sales Tax Number nor I have applied for it elsewhere. I understand that incorrect information can lead to punitive action: Date Official Stamp Authorized Signature ======================================================================================= (FOR OFFICIAL USE) Sales Tax Registration Number Allotted ________________ Date -------------------- __________________________ SIGNATURE & STAMP of issuing Office -------------------------------------------------------------------------------------------------------------------- Annex - B GOVERNMENT OF PAKISTAN COLLECTORATE OF______________________________ ________________________________________________ -------------------------------------------------------------------------------------------------------------------------------------------------------- CERTIFICATE OF REGISTRATION (UNDER SALES TAX ACT, 1990) (01) Name (02) Address (03) You have been registered as : 1 Manufacturer 2 Importer 3 Exporter 4 Distributor 5 Wholesaler 6 Retailer 7 Ship Breakers This means that you must: (i) Charge Sales Tax on all taxable supplies made during the course of taxable activity. (ii) File a return in the designated bank relating to a month on or before the due date. (iii) File a Nil - Return even if no taxable activity takes place during the current tax period. (iv) Abide by the provisions of Sales Tax Act,. 1990 and rules made there under. (04) Your Sales Tax Registration Number is _________________ (05) Date of Registration: ________________ (06) This number must be shown in the tax return and on all the invoices issued by you and quoted in all your correspondence with the Sales Tax Department. Assistant Collector (Sales Tax) Registration & Information Division ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Annex-C FORM Name and registration No. of the supplier from whom taxable supplies were purchased during a period of 30 days prior to the date of application for Registration | Description of taxable goods purchased/imported | Sales Tax invoice, No. and date against which purchases made. In case of imported goods give name of customs station of clearance vessel name, IGM No. & date, index No. BE, cash No. & date. | Purchases/value import value (duty-paid value) 1 | 2 | 3 | 4 Value of goods still in stock on the date of application for registration | Sales tax on stocks specified on the date of application for registration 5 | 6 ----------------------------------------------------------------------------------------------------------------------------------------- ANNEX-D C. No. Date M/s_________________________________ ____________________________________ ____________________________________ ________________ Subject: COMPULSORY REGISTRATION Whereas it has been ascertained that you are liable to be registered but have not yet got yourself registered under the Sales Tax Act, 1990, I allow you an opportunity to apply for registration (form of application is enclosed) in the form attached with this notice. You should also declare the stocks in hand, if any, in terms of section 59 of the Sales Tax Act, 1990, read with rule 3(3) and Annex-C of the Registration, Voluntary Registration and De-registration Rules, 1996. 2. Kindly note that in case you fail to apply for registration by ___________________(date),- (a) you shall be compulsorily registered under section 19 of the Act without any further notice; (b) you shall render your self liable to penalty under section 33(3) of the Sales Tax Act, 1990; and (c) You shall also render yourself liable to arrest and prosecution in terms of section 37C(1)(b) of the Sales Tax Act, 1990. Encl: Registration Form Officer of Sales Tax Tel: Fax: E-mail: