Mohsin Siddiqui (Chief Reporter) 

The Federal Board of Revenue (FBR) has made modifications to a contentious requirement regarding the filing of balance sheets for all sales tax registered persons, as per SRO 350 (I) 2024.

Under the revised guidelines, sales taxpayers are now permitted to submit a summary of their capital and liabilities instead of a detailed balance sheet within their monthly sales tax returns. This alteration comes in response to concerns raised, particularly by small-scale businesses, regarding the initial requirement.

To implement this change, the FBR issued a notification, SRO 644 (I)/2024, to amend the Sales Tax Rules, 2006. The adjustment aims to address the challenges faced by businesses, which led to delays in the submission of sales tax returns for March 2024 across various sectors.

The revised directive replaces the previous mandate of filing a complete balance sheet with a simplified reporting method, declaring the sum of capital and liabilities. This relaxation, outlined in the new notification, SRO 644 (I)/2024, aims to streamline the reporting process and alleviate the burden on taxpayers.

By replacing the requirement for a detailed balance sheet with a summary of capital and liabilities, the FBR seeks to facilitate compliance among sales tax registered persons while ensuring transparency in reporting practices.