06-27-2004, 04:36 PM
Asslamo Alaikam,
Yes you are right that threshold for manufacturer and retailor for the purpose of sales tax registration has been increased to RS. 5.00 Million. The person who are already registered or enrolled are required to file application for de-registration, however they must file the sales tax return for the tax period-June-04 or quarter ending June-2004 which ever is applicable.
Yes, it will be beneficial for manufacturer and retailor whose turnover is less than 5.00 million to be de-register and not to pay any tax with the return.
In pakistan Sales Tax is being collected and charged on the machnism of VAT (Value added tax) after adjusting input and output tax. unregistered person can not claim input tax and it becomes cost factor for them, but registered person can claim input tax and simultaneously they charged output tax (otherwise like absorb input tax, it also becomes absorb output tax) and the difference so calculated becomes their liability to deposit with the return, ultimately it has negative impact on profit margin and also disadvantageous for consumers.
I hope you better understand, if not and then directly write to me at
theconsultants786@hotmail.com
<BLOCKQUOTE id=quote><font size=1 face="Verdana, Tahoma, Arial" id=quote>quote<hr height=1 noshade id=quote>
Hello
The recent budget increased the threshold for sales tax registration to Rs 5mn for manufactures. For business already registered, who have less than this sale, is it mandatory to deregister or voluntary?
Also, would it really be good for business under 5m not registering for GST???
I mean, if they dont register, then they cannot claim any input tax and will have to absorb these costs. Even if their purchases are around 2.5mn, the GST claimable would be 375,000. Not registering means loosing this..
Is there something I am missing. Why is this increase in threshold being termed as helpful for the small business?
Thanks
Khizar
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote><font size=6></font id=size6><font color=green></font id=green><font face='Century Gothic'></font id='Century Gothic'>
massood ar.
Yes you are right that threshold for manufacturer and retailor for the purpose of sales tax registration has been increased to RS. 5.00 Million. The person who are already registered or enrolled are required to file application for de-registration, however they must file the sales tax return for the tax period-June-04 or quarter ending June-2004 which ever is applicable.
Yes, it will be beneficial for manufacturer and retailor whose turnover is less than 5.00 million to be de-register and not to pay any tax with the return.
In pakistan Sales Tax is being collected and charged on the machnism of VAT (Value added tax) after adjusting input and output tax. unregistered person can not claim input tax and it becomes cost factor for them, but registered person can claim input tax and simultaneously they charged output tax (otherwise like absorb input tax, it also becomes absorb output tax) and the difference so calculated becomes their liability to deposit with the return, ultimately it has negative impact on profit margin and also disadvantageous for consumers.
I hope you better understand, if not and then directly write to me at
theconsultants786@hotmail.com
<BLOCKQUOTE id=quote><font size=1 face="Verdana, Tahoma, Arial" id=quote>quote<hr height=1 noshade id=quote>
Hello
The recent budget increased the threshold for sales tax registration to Rs 5mn for manufactures. For business already registered, who have less than this sale, is it mandatory to deregister or voluntary?
Also, would it really be good for business under 5m not registering for GST???
I mean, if they dont register, then they cannot claim any input tax and will have to absorb these costs. Even if their purchases are around 2.5mn, the GST claimable would be 375,000. Not registering means loosing this..
Is there something I am missing. Why is this increase in threshold being termed as helpful for the small business?
Thanks
Khizar
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote><font size=6></font id=size6><font color=green></font id=green><font face='Century Gothic'></font id='Century Gothic'>
massood ar.