FBR introduces software for deduction of sales tax, identification of vendor number



A new software has been introduced in all the accounting offices for automated verification of Sales Tax Registration Number (STRN) and deduction of applicable rates of sales tax.

According to press release issued on Wednesday, the Controller General of Accounts (CGA) and the Federal Board of Revenue (FBR) have jointly developed a software which has been deducting applicable rates of sales tax from vendors’ claims, while submitting at accounting offices.

The successful implementation of the project will ensure correct deduction of sales tax. Under the system, from July 1 onwards, the deduction of applicable rates i.e. 10%, 20% and 100% of the sales tax will be made through this automated system. The system of the all the AGs will be linked up with the FBR’s database in order to verify the status of the vendor’s STRN and authenticity of the Sales Tax Registration Number (STRN).

Under the system, the government departments and ministries will be required to deal with only those vendors who possess a genuine STRN.

The system was developed following a pilot project which was launched by the CGA at the AG Office Islamabad under the supervision of DG (MIS) FABS on May 1. In this pilot project, a number of issues arose and solutions were provided to DG (MIS) by FBR for successful implementation of the software. After resolution of the teething problems of the project, both partners i.e., the FBR and CGA decided to extend this project across the country from July 1.

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