KARACHI: The Federal Board of Revenue (FBR) has allowed companies not incorporated to get register with those Regional Tax Office (RTO) where manufacture activities of those taxpayers being undertaken.
Earlier, it was restricted only to places where business entity’s head office was located.
The FBR issued Sales Tax SRO 945 on Tuesday to define the jurisdiction of corporate and not corporate companies for their registration for taxation purpose. Through the SRO, the FBR amended the Sales Tax Rules, 2006 Rule (5).
The sales tax notification said that the listed and unlisted public limited company can be registered within the jurisdiction of Regional Tax Office at the place where company’s registered office is located.
The major change has been brought in Rule (5) sub rule (1) clause (b) in case of other companies, the FBR said that now the company that is engaged in manufacture or processing can be registered with the RTO where company’s factory is situated. In case the company is primarily engaged in business other than manufacture or process, the place where main business activities are actually carried on.
In case of a person not incorporated, the FBR said that the jurisdiction where the business is actually carried on and in case of a person not incorporated having a single manufacturing unit and whose business premises and manufacturing unit are located in different areas, the jurisdiction where the manufacturing unit is located.
It is also provided that the jurisdiction of Large Taxpayer Units shall remain as specified by the board.
It further said: “the FBR may transfer the registration of any registered person to a jurisdiction where the place of business or registered office or manufacturing unit is located.”
FBR sources said that the order was issued to justify the recent directives issued regarding jurisdiction where jurisdiction of several individuals and corporate entities had been redefined.