ISLAMABAD: The Federal Board of Revenue (FBR) has ruled that manufacturers of certain taxable goods must buy and install production monitoring systems only from vendors the Board has approved.
The order was issued in a notification. It applies to manufacturers of specified taxable goods and to registered persons covered under Rule 150ZQR. They must get their monitoring systems, equipment or any other required monitoring tools only from an approved vendor.
The approved vendors have a duty too. They must make sure the systems and equipment they install meet the standards and requirements set by the Board.
The rule allows electronic tracking of production, sales, clearance, stock and other related activities. This can be done through a production monitoring system, video cameras, video analysis tools, a “digital eye” or any other method the Board prescribes.
It applies to:
– any registered person or group of registered persons;
– any manufacturer or group of manufacturers;
– goods listed in the Third Schedule to the Sales Tax Act, 1990; and
– any other taxable goods the Board names in the official Gazette.
The FBR can decide when the systems must be installed and working. It can announce the date through the official Gazette or a special order. The date can apply to a person, a manufacturer, certain goods or a whole sector.
The Board can also set different deadlines for different people.
