Supply of Taxable Goods Brought From Tax Exempt Area

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.