Impacts of compulsory registration on a person whose compulsory registration has been made
A registered person, whose compulsory registration has been made, shall face the following situations:
1) Compliment of law:
After compulsory registration by CRO, a registered person is required to comply with all the provisions of the Sales Tax Act, 1990 and the rules prescribed by the FBR from the date of compulsory registration.
2) Failure in compliment of law by compulsory registered person:
Where compulsory registered person fails to comply with the legal provisions, the Collector of Sales Tax having jurisdiction may issue notice u/s 25 of the Sales Tax Act, 1990 for production of records or documents and appearance in person to assess the amount of sales tax payable u/s 11 of the Sales Tax Act, 1990, and take any other action as required under the law against such person.
3) Cancellation of registration by CRO:
The CRO shall cancel the registration if it subsequently determined that the person was not liable to be registered but was wrongly registered due to inadvertence, error or misconstruction.
Such person shall not be liable to pay any tax, default surcharge or penalty under any provision of the sales tax law.
Change in the Particulars of Registration [Rule-7]
1) Who may apply for change in registration?
A registered person may apply for change, where such person feels a need to change its registered name or registered address or change in business category or change in other particulars which have been already given in registration form.
2) Where application for change is filed:
An application for change in registration particulars is filed to the concerned Central Registration Office (CRO).
3) Prescribed form:
An application for change in registration shall be filed in the form (STR-1).
4) When application for registration is submitted:
An application for change in registration shall be filed by registered person within (14) days of such change.
5) Channel for transmission of application:
The application shall be transmitted to the Central Regional Office (CRO) through:
i) Electronically; or
ii) Registered mail; or
iii) Courier service.
6) Verification by the LRO:
Where a person apply for change of business category as ‘manufacturer’, change shall be allowed after LRO has verified the manufacturing facility and confirmed the status as industrial consumer of the electricity and gas distribution companies.
7) Issuance of revised registration certificate:
In case of approval of change applied for, the CRO shall issue revised registration certificate, which will be effective from the date the concerned person has applied for the change.
Transfer of Registration [Rule-8]
1) What is meant by transfer of registration?
Transfer of registration means the transfer of registration of a registered person from one Collectorate to another Collectorate or, as the case may be, to the LTU or RTO.
2) Who may transfer registration?
The CRO is authorized to transfer the registration of a registered person.
3) From which authority registration is changed:
The CRO may transfer registration of a registered person from one Collectorate to another or to the Large Taxpayer Unit (L TU) or Regional Tax Office.
4) Imposition of conditions:
CRO may impose certain conditions, limitations and restrictions on a person while ordering the transfer of registration of a registered person.
5) Transfer of records and liabilities:
When registration is transferred from one office to the other, all records & liabilities of the registered person shall also be transferred to the concerned Collectorate or to the LTU or to the RTO.
6) Issuance of intimation letter:
After transfer of registration, the CRO shall issue intimation letter to the registered person along with copy to concerned Collectorates or LTU or to the RTO.
Note: Under exceptional cases, where a person is not able to send application for registration, change in particulars of registration or transfer of registration directly to CRO, he may submit the same to LRO and LRO is responsible to forward the application to CRO within 3 days.