Dear Learned Professionals

A.   Commentary

Further to KQU 3212 dated 25.1.2025, being an Important matter, it is worthwhile to note that S.R.O.No.55 dated 24.1.2025 (Attachment 3018.1) made further amendments in the Federal Sales Tax (FST) Rules, 2006.

2.   The amendments increased sales tax documentation requirements for registered manufacturers, commercial importers, distributors, and wholesalers as per para 3 and 4 below.

Two new reporting formats have been introduced:

3.   Annex-Hl - Stock Statement (New Annexure): This is an additional requirement for Commercial importers, distributors, and wholesalers must provide stock details, including HS codes, unit of measurement, sales tax rates, opening and closing balances, quantities, values, and purchases/imports made during the month.

4.   Annex-J - Production Data: This has been substituted with a revised format for all registered manufacturers (instead of specific manufacturers) with following deletion and additions:

Deletion

1. NTN

2. Business Name

3. Value of Supplied

Addition

1. UoM (Unit of Measurement)

2. Value of Opening Stock

3. Value of Quantity Produced during the month

4. Quantity Exported

5. Value of Closing Stock

B.   Specific Track Version

For your convenience, the amendments in relevant Rules made are presented below in Italics wherein the additions are in bold and the omissions and substitutions in strikethrough.

Rule 14. Filing of returns.— (1) Every person excluding a retailer not being a tier-1 retailer, registered under the Sales Tax Act,1990, or the Federal Excise Act, 2005, shall file the return as specified in the form STR-7, along with all its annexure provided therein, in accordance with the instructions given therewith, in the manner as specified in rule 18.

Provided that all registered manufacturers making supply of taxable goods as mentioned in column (2) of the Table below shall furnish, in Annex-J of the monthly return, details of such goods manufactured or produced and goods supplied, using the units mentioned in column (3) of that Table, namely:

Provided that all registered manufacturers making supply of taxable goods shall furnish, in Annex-J of the monthly return, details of goods manufactured or produced and goods supplied:

Provided further that all registered commercial importers, distributors, wholesalers making supply of taxable goods shall furnish in Annex-Hl of the monthly return, details of such goods purchased or imported and goods supplied."

Form STR-7 

After Annex-H, the following new Annex-Hl shall be inserted namely:-

                                         ³⁶⁶[ANNEX J (PRODUCTION)

(b) For the existing Annex-J, the following shall be substituted namely:-

C.   KC SALES TAX WORKSHOP (including Withholding Tax, etc)

We have planned Workshops in Karachi and Online as per the dates in the Table below. Register urgently to get early bird discount. For more details, please feel free to call Mr Waleed at 0336 8534 786 OR Mr Abid at 0335 2204 786.

D.    Further Details & Services

3Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@786tax.com with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.

Best regards for Here & Hereafter

Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

Quick Commentary Service Provider and High Level 440+ Tax & Levies Laws Consultants) 

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