KARACHI, July 4: All sales tax registered persons have become income tax withholding agents from the new fiscal year, starting on July 1, 2013, and would have to file two statements every month on or before 20th of the following month. The taxpayers under the Finance Act 2013 would now have to deduct tax at source and even in case of no deduction will have to file statement every month. The amendment made through Finance Act 2013 has also enhanced penalty from Rs5,000 to Rs20,000 in case the withholding statement is not filed by a taxpayer. Under new tax laws, all supplies that have taken place subsequent to June 12, are subject to 17pc sales tax, irrespective of whether such supplies are on the basis of purchase orders received prior to budget announcement. Further tax at one per cent on supplies to unregistered persons has been imposed and became effective from June 13. Where tax has been collected at the rate of 2pc, the money so collected would have to be deposited into government treasury as arrears of tax. Tax consultants said that Sales Tax registered persons will have to charge 17pc sales tax on advances received from customers from June 13. The sales tax is to be declared in the return for tax period in which the advance is received. They further said that failure to charge sales tax on advances may entail calculation of default surcharge (additional tax) for the period advance was received and actual delivery as declared in sales tax return for relevant tax period. Tax experts have advised taxpayers to retain gate passes, transport receipts for goods inward and outward as sales tax records to substantiate legitimacy of their purchase and supply transactions. These experts said that failure to maintain such record may reduce legitimacy of transaction and prone to inadmissibility of input tax credit or phenomena of fake and flying invoices.
Posted on: Fri, 05 Jul 2013 12:33:02 +0000
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