Federal Board of Revenue issued a notification related to the requirement of CNIC for transaction.
The CNIC for transaction is now must for buyers who want to purchase items worth ovr Rs 50,000 from any registered sales tax seller.
A female buyer can also provide the CNIC of her father or husband to do the transaction. On the other side, the condition will not apply if purchases are valued below Rs 50,000 and purchase that is being made to any ordinary buyer.
According to sources, the aim is to document the business to business transactions and those which are higher than Rs 50,000 in value, to identify limited number of customers. However, it will not just assist the government to avoid fictitious and unverifiable business buyers that can prevent huge sales tax loss.
FBR issued a clarification through sales tax circular to detail the Sales Tax Act amendments. As per the amendment, if the purchase involves the sales tax registered person, the buyer’s CNIC number will be essential for some specific situations. In addition, the provision of CNIC does not elaborate that the buyer lies under the sales tax law. However, sales can be made to the buyers who are unregistered.