A.   Background (BG)

This refers to the related Important TLQCs in trail, blue, italic and double line (a) 2935 of 25.10.24 about Single Sales Tax Return New Committee and Portal Workshop (b) 2687 of 1.4.24 about SSTR launching for Telecom & KCV for Sectors

2.   We also refer to several Other TLQC including the following: (a) 2528 of 27.10.23 about Single ST Portal for FST & PST (b) 2526 of 26.10.23 about Minimum Tax u/s 113 on Freight Services Fee & not Gross Receipt – LHC

B.   Updated Commentary

1.   Further to KQU 3157, being an important matter, we would inform you about FBR to Add Hotels, Restaurants and Ride-Hailing Companies to Single Sales Tax Return (Attachment 3010.1) in the ensuing paragraph, with emphasis in bold & Underline for quick reading.

2.   The FBR and all the Provincial Revenue Authorities/Board will extend the scope of a SSTR to hotels, restaurants, Fast Food Chains, Clubs, Caterers, Digital or IT Based Services, Ride-Hailing Services, Manpower Recruitment Agents and Franchise Services during 2025.

3.   According to the FBR document for 2025, the SSTR will eventually be extended to all other sectors. The FBR has planned key activities for 2025, including demonstration sessions with Microfinance Banks, Broadband Internet Service Providers, and Exploration and Production (Oil and gas), followed by User Acceptance Testing by Provincial Revenue Administrations. User Acceptance Testing (UAT) sessions for Commercial Banks and Insurance Companies will be held in collaboration with the PRAs

4.   In 2025, Demonstration Sessions have been planned for the following service providers: hotels, restaurants, Fast Food Chains, Clubs, Caterers, Digital or IT-based services, Ride-Hailing Services, Manpower Recruitment Agents, and Franchise Services.

5.   The SSTR will be extended to all other sectors in due course of time.

6.   Other initiatives included UAT for service sectors across jurisdictions; harmonization of Laws & Procedures and launch of SSTR for all sectors across jurisdictions during FY 2025

7.   The FBR has extended the scope of a SSTR to additional two sectors i.e. oil and gas (exploration and production) companies and microfinance banks.

8.   The FBR had launched a single sales tax return (tax period of January 2024) for the telecom sector filed in February 2024 through the Single Sales Tax Portal.

9.   According to the FBR’s instructions, in pursuance of the government’s desire to facilitate taxpayers, promote ease of doing business, and reduce compliance costs, FBR has developed a Single Sales Tax Portal/ Return, in consultation with all Provincial Sales Tax Authorities, to simplify the process of filing of      .

10.   Through the portal i.e. www.iris.fbr.gov.pk, sales tax registered persons shall be able to file a single sales tax return instead of filing separate returns to FBR and each of the different Provincial Sales Tax Authorities. Thus, it will save time and effort besides simplifying the return filing process. It will minimize data entry and address the issues of data and calculation errors.

11.   The system will allow the apportioning of input tax adjustments as well as tax payments across the sales tax authorities, eliminating the need for reconciliations and payment transfers. A great benefit of this system is that it will encourage harmonization of tax procedures across Federal and Provincial Government Revenue Authorities, which will promote national unity, FBR added.

Further Details & Services 

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Advisory, Statement or Return Filing or Review services, or related accounting matters like the above, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com. Your Good self may continue to get other services from your current Tax & Legal Advisors.

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

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