FBR makes it Mandatory to Show CNIC on Purchases of over Rs. 50,000.

As per a notice issued by Federal Board of Revenue(FBR) on Saturday, it is necessary for a citizen to present his or her Computerized National Identity Card on Purchases of over 50,000 from a registered sales tax seller.

Those who fail to present their ID card would be prosecuted. As informed by FBR spokesperson Dr. Hamid Ateeq Sarwar, the condition is being enforced with effect from Feb 1, 2020. The condition was waived off in July 2019 in order to facilitate traders, he said.

“We will connect our system with that of Nadra (National Database and Registration Authority) to verify the validity of CNICs,”  Said Dr. Hamid Ateeq Sarwar

The buyer does not have to be the registered person under the law. Sales can be made to the unregistered person. But, If the seller is sales tax registered then it is mandatory for him to get CNIC of each of his buyers. In limited conditions, the buyers could only provide CNIC numbers only.

The amendment has been in order to keep a record of business to business transactions. It would help sift out unverifiable and fictitious business buyers who cause huge losses along the value chain.

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