FBR Made CNIC Mandatory for Transaction over Rs.50,000

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    FBR

    FBR

    Computer National Identity Card (CNIC) is mandatory now for citizens who are making any purchase over Rs. 50,000 according to the new notification issued by the Federal Board of Revenue.

    A female buyer can also use the CNIC of her husband or father to make the said transaction. The law provisions notified by the board maintain that the condition will not apply if the purchases are valued below Rs. 50,000 and the sales are being made to an ordinary customer.

    The main purpose of making CNIC mandatory is to document business-to-business transactions and those valuing higher than Rs. 50,000; in order to identify a limited number of customers. The CNIC condition will help avoid fictitious and unverifiable business buyers, preventing huge sales tax losses in the value chain.

    The FBR has issued a clarification via a sales tax circular to detail the amendments made in the Sales Tax Act. These amendments have rendered it mandatory for buyers to show CNIC on transactions made with a sales tax registered person. Around 41,484 sales tax registered persons pay tax with returns.

    According to the amendment by FBR, if the purchase involves a sales tax registered person, the CNIC number of the buyer will be necessary for some specific situations. Moreover, the provision of CNIC does not mean that the buyer should be a registered person under the sales tax law. Sales can be made to the unregistered persons.

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