KARACHI: Regional Revenue Office (RTO)-II, Karachi on Saturday sealed an electronics store for failing to perform mandatory integration with the online system.
RTO – II, Karachi, a branch of FBR, while continuing its crackdown on non-compliant Tier 1 retailers, has sealed M/s business premises. Rafi Electronics located at Gulshan e Iqbal, Karachi.
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The tax authorities also imposed an amount of Rs 500,000 as a penalty for non-compliance.
According to officials from Zone-III, RTO-II, Karachi said the tax office had already issued an order on January 1, 2022 against the Tier 1 retailer for mandatory onboarding. In addition, a penalty of Rs 500,000 was also imposed for non-compliance.
“The retailer, despite receiving the order, failed to install the point of sale (POS) and integrate the unit until the unit was sealed,” an official said.
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All Tier 1 retailers are required to integrate with the FBR under Section 33 of the Sales Tax Act 1990. The RTO-II had warned the Tier 1 retailer only in the event that they did not fit in the manner required under the Tax Act 1990 and the rules made thereunder, the business premises will be sealed.
Under the Sales Tax Act. 1990: This is an offence: “A person required to incorporate his business as incorporated under Subsection (9A) of Section 3, who fails to register under the Act and , if incorporated, fails to incorporate as required under the Act and the rules made thereunder.
Penalties for the violation are included as follows:
(i) penalty of five hundred thousand rupees for first default;
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(ii) a penalty of one million rupees for second default after fifteen days of first default order;
(iii) a penalty of two million rupees for the third default after fifteen days of order for the second default;
(iv) penalty of three million rupees for fourth default after fifteen days of order for third default:
Notwithstanding the foregoing, such person’s business premises will be subject to sealing by a tax official in the manner prescribed.
Provided that if the Retailer enters its business into the Commission’s computerized system prior to the imposition of the Second Default Penalty, the First Default Penalty will be waived by the Commissioner.
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