The Federal Board of Revenue has relaxed the obligation to submit balance sheets of assets and liabilities for individuals, associations of persons (A.O.P), and single-member companies already registered.
The Federal Board of Revenue (FBR) has recently implemented stringent conditions for new sales tax registration, aiming to mitigate the risk of tax fraud. These amendments, introduced last month through amendments in the sales tax registration rules of 2006 via SRO 350(I)/2024 dated April 7th, 2024, aim to curb various activities and transactions susceptible to tax fraud.
One of the new conditions mandates the filing of the balance sheet for obtaining fresh registration by individuals, partnership firms, or single-member private limited companies. Interestingly, this condition also applies to already registered entities falling above a certain class, who are required to comply within 30 days of the law’s introduction.
However, many registered entities were unaware of this requirement as no prior notice, intimation, or information session was conducted by the board.
Consequently, after Eid Holidays, when existing registered entities attempted to file their sales tax return or Annex ‘C,’ they encountered difficulties proceeding as this condition had not been fulfilled, resulting in a chaotic situation in the trade sector.
