The Federal Board of Revenue (FBR) has made significant changes in the sales tax regime. According to the new changes, the inland revenue operation wing has set up a new Sales Tax Real-Time Invoice Verification System (STRIVe) for halting the false claims of tax input.
The member inland revenue (operations) of the FBR, Dr. Muhammad Irshad, along with Mr. Abdul Hameed Memon – chief Automation & Sales Tax, and his team has introduced the STRIVe system for the first time in the history of Pakistan.
With the help of the new regime, all the registered suppliers will first submit the data of their sales invoices to the FBR along with the monthly tax return. The registered purchasers will claim their input tax from this data. This new kind of technology will verify all the input tax claims.
This new system of electronic system of the sales tax has been developed under the guidelines and supervision of the Finance Minister Ishaq Dar, the Prime Minister’s Special Assistant on Revenue, Humayun Akhtar Khan, and Chairman FBR Nisar Muhammad Khan.
The new system promises to save the time of the registered people. The authority will get rid of the bogus refund claims. Instead of months, the payment of the refund claims will be made in just one or two weeks. The new system has been started by July 2016.
The registered persons are required to submit the information of the sales of a month on the 10th day of the next month or around four to five days before the filing of monthly sales tax statement.
According to the FBR, no claims for input adjustment or refund would be entertained on such claims where the authorities had not received payments.