Filing a Null or Zero Return in Pakistan

In Pakistan, there is a common misconception that if a business has no business activity during a tax period, then the taxpayer is not liable to file a monthly sales tax return for the same. This blog post will provide an overview of what is null filing of sales tax return and when it is required to file in accordance with legal provisions prescribed under the law.

Here, we would like to discuss the parameters under which the sales tax registered person is bound to choose an option towards filing of null sales tax return in the tax periods where neither any business transaction is being made nor any record / data is available to report. We would like to highlight the importance towards filing of null sales tax return, non-compliance to which may results of certain repercussions which are listed as underneath:

• Sales tax registration comes with an obligation that every registered person required to file monthly sales tax return in the manner prescribed under the Sales Tax Act, 1990 [ST Act] and allied Rules. Even in the event where the business has made no sales, the registered person is still under obligation to inform the same to the Tax Authority by way of filing Null Return.

• The registered person may face some sort of discomfort by non-filing of sales tax return for two consecutive months as result of which the registration status would be excluded from Sales Tax Active Taxpayer list.

• Non-compliance to filing of return may adversely affect the business operations of the company as Tax Authority may issue notice to penalize that registered person on account of non-filing of sales tax return. This is not only the matter of penalties imposed by respective canon of taxation, but also harm the business image among the suppliers and buyers.

Based on above scenarios and legal understanding, we would like to summarize here that every person who has got himself registered with relevant tax authority is required to fulfil all the obligations and compliance comes under the obligation of respective tax laws. Here in Befiler, we are offering all the related services concerning the Sales Tax Obligations along with the necessary guidance regarding the matter. We recommend speaking with our professional tax advisor at Befiler who can help you to determine what is best for you in accordance with specific situation.