Amendment in the Sales Tax Rules, 2006

Covernment of Pakistan Revenuc Division Federal Board of Revenue Islamabad, the l Trh April, 2025. NOTIFI(]ATIO\ S.R.O.608 ll)/2025.- ln exercise of the powers c:onferred by section 50 of the Sales 'l'a\ Act. 1990(VIl ol'1990). read wilh clause (37) of seclion 2, scction 21, section 40ll and section .l0C rhereot', the Federal Board of Revcnue is pleased to direct that the tbllowing further amendments shall be made in the Sales Tax Rules.2006. namell:- ln the alirresaid Rules. - (l) in rule ll,- ( l),- (a) in sub-rule (i) for the words "or rvho ceases to remain registered shall apply to the Commissioner [nland Revenue having jurisdiction", the words "and he intend to get de-registered shall apply online on the computerized system" shall be substitutedi (ii) for the word "ninety", the word "sixty" shall be substituled, and for full stop at the end, a colon shall be substituted and thereafter a proviso shall be added. namely:- Provided that registered person shall be baned to file Annex-C, Annex-D and the retum after the date ofonline submission of application. No input tax adjustment or refund shall be admissible to the registered person during the currency of de-registration. And no input tax adjustment or refund shall be allowed to any other registered persons on the strengh of invoices issued by such person, during the currency of de-registration.; (b) for sub-rule (2), the following shall be substituted. namely:- any "(2) Where the Commissioner Inland Revenue desires to conduct audit or inquiry ofthe applicant to determine his liability. he shall require the applicant. in u'riting. to provide the requisite records. The Commissioner on receipt of the complete requisite records and upon completion of any audit or inquiry which may have been initiated consequent upon the application of the registered person for de-registration, shall complete the proceedings or inquiry rvithin nine6' days from the date of application and direct the applicant to discharge an)' outstanding liability rvhich may have been raised therein b1' liling a final return under section 28. On submission of final retum and payment, if any entry to this effect shall be made in the

computerized system. rvhich shall autornaticalll de-register the applicant on expiry ofninety days thereof. subject to provisions ofsub-rule (4). Provided that adjournment be excluded but not later than ninety davs.": (c) in sub-rule (2A). for the words "by the Commissioner Inland Revenue having jurisdiction". the words "on the computerized system'' shall be substituted: and (28) shall be omitted; {d) sub-rule (2) in rule 12,- (a) for the rvord "LTUs", the uord "LTOs" shall be substituted: (b) in clause (a), (A) in sub-clause (i), (i) for the expression "tax fraud", the expression "tax fraud in terms of clause (37) ofsection 2 ofthe Act" shall be substituted; (ii) in paragraph (A). for the expression "non-availability", the expression "non-existence" shall be substituted: (iii) for paragraph (B).(C). (D). (E), and (F) the following shall be substituted, namely: "(B) relusal to allou' access to business premises under section 408 and 40C or refusal to lumish records under section 25 and 37 of the Act to an authorized Inland Revenue Officen (c) activity becomes 5 time more than sum of the capital and liabilities declared in the balance sheet: (D) making more than l0% purchases lrom or making l0% supplies to other suspended person in the month of suspension, except suspension based in terms of clause B or value of above Rs. 50 million or u'hichever is higher: (E) non-filing of sales tax returns lor three consecutive months and null filing ofsales tax retums lor six consecutive months;" (F) committed any act which falls within the ambit of tax fraud;"; (iv) in paragraph (G), for the word "Commissioner", the word "Board" shall be substituted: (B) in sub-clause (ii). for the word "LTUs". the word "LTOs" shall be substituted; (C) in sub-clause( iii). for the word "six". the word "three" shall be substituted; (D) in sub-clause (iv).

(i) for the word "LTUs", the word "LTOs" shall be substituted; (ii) in paragraph (C), after the words "record or premises", the words "under sections 40B and 40C" shall be inserted; (iii) in paragraph (D), for the word "Commissioner", the word "Board" shall be substituted: word "LTOs" shall be (E) in sub-clause (viii), for the word "LTUs", the substituted: and suspension of the (F) in sub-clause (ix), after the words "revoking of registered person", the words "within thirty days of receipt of the reply to the notice" shall be inserted. lC. No.3(2)ST&FE-Policy/2025 | Second Secretary (ST& )