Supply of Taxable Goods Brought From Tax Exempt Area

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The Federal Board of Revenue has issued rules for supply of taxable goods from tax exempt area i.e. Azad Jammu and Kashmir, Gilgit-Baltistan and Tribal Areas.

Salient features of these rules are as follows

  • The person bringing the goods from exempt area are required to be registered under the Sales Tax Act, if already not registered.
  • The liability of payment of taxes and furnishing of prescribed documents shall be on the person bringing the taxable goods to tariff area.
  • The person bringing the goods in the course of furtherance of taxable activity shall generate e-transport advice on FBR portal prior to entry of goods in taxable area.
  • Active taxpayers under the sales tax who has filed sales tax returns for last two immediately preceding tax periods by due date is allowed to generate etransport advice
  • E-transport advice is valid for one day for distance within 100 km and additional one day for every 100 km. It may extended with the approval of commissioner.
  • The adjudicating authority have power to confiscate goods, after passing order, if these goods are brought in violation of the rules.