Sales Tax Return (2016-17) Changes & Updates

Sales Tax Return (201617) Changes & Updates

Date of Publication: 17th July 2016

Sales Tax Return (2016-17) Changes & Updates

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Process Changes in Sales Tax Return (Filing Annex-C, A&I)

Inde

Executive Summary......................................................................................................................................... 2
Scope.................................................................................................................................................................. 2
Sales Tax Return (2016-17)............................................................................................................................. 2
Name of the Sales Tax Return (2016-17)...................................................................................................... 2
Change in Annex-C........................................................................................................................................... 2
Change in Annex-A......................................................................................................................................... 54
Change in Annex-I.......................................................................................................................................... 65
Addition of Row (12a) on Sales Tax Return................................................................................................ 76
Addition of Rows (7a, 7b & 7c)..................................................................................................................... 87
Addition of Row (18a).................................................................................................................................... 97
Change in Row (20)........................................................................................................................................ 98

Executive Summary
FBR Sales Tax Return launched for tax period 2016-17 with changes as per budget 2016-17. This
document explains the high level business changes arrived as per revenue authority. This document is
to facilitate active sales taxpayers to file their ST-Return with ease and in due time.

Guide for Sales Tax Return (Filing Annex-C, A & I)

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Process Changes in Sales Tax Return (Filing Annex-C, A&I)

Scope
Scope Includes
Name of the Sales Tax Return (2016-17)
Change in Annex-C
Change in Annex-A
Change in Annex-I
Addition of Row (12a) on Sales Tax Return
Addition of Rows (7a, 7b &7c)
Addition of new Row (18a) on Sales Tax Return
Change in Row (20) on Sales Tax Return

Sales Tax Return (2016-17)

The new Sales Tax Return (2016-17) bring in a few changes for filing return. The Revenue authorities
proposed changes, keeping in mind its valued taxpayers and ease of filing their sales tax return.
Following are the major changes incorporated and their details.

Name of the Sales Tax Return (2016-17)

i.

The new proposed system in now called STRIVe (Sales Tax Real-time Invoice Verification).

Processing of Invoices in Annexure-C and Annexure-A:Change

in Annex-C
There has been a major change in the process of feeding of Invoice(S) by the Sellers and the
Buyers. Previously, Both the Sellers and buyers had to feed their invoice(s) in their Annexure-C
and Annexure-A. For the Return of year 2016-17, this process has changed. The cut-off date for
filing the invoice(s) for the tax period will be 10 th of each month.
In the New process, Sellers will feed their invoices in Annexure-C and upon Finalization, will
submit their invoices. Once the Invoice(s) are submitted by the respective Sellers, these
invoices will available to the respective Buyers for Claiming on Annexure-A. Please note that
from now onwards, the Buyers will have to Claim the Invoices (that pertains to the period not
earlier than July 1st, 2016). No Invoice feeding is permissible where Invoice Date is on/after July
1st, 2016 for REGISTRED Tax payers. For invoices of unregistered person, the previous process
stands still. However, special cases for the Self-invoicing, Invoices for allowed FTNs etc. can be
fed through available mechanisms. Similarly, invoice prior to July 1 st 2016 can be fed into the
system as are being done earlier.

Guide for Sales Tax Return (Filing Annex-C, A & I)

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Process Changes in Sales Tax Return (Filing Annex-C, A&I)

Invoices Fed and Submitted by the sellers, will be available to Buyers for claiming on AnnexureA. Seller can make invoices available to Buyers by clicking the

on Annexure-C.

For this preparing Annexure-A, Buyers will search the respective invoices through Annexure-A,
by clicking the Purchase Data button and then searching the invoices by using any
combination of the available options. To Claim the invoice, the Buyer will have to Select (Tick the
Check box against each invoices) and clicking the Load Data button.
Once an invoice is claimed by the Buyer, this Invoice will be locked for any Editing or Deletion to
the respective Seller. However, If Buyer deletes/Un-claim any invoice, the sellers can make
desire amendments.
A new column is added in Annex-C grid with the name Invoice Status, showing status of the
invoice as:
i. Un-Claimed: Until the invoice is not claimed by the buyer.
ii. Claimed: As soon as the buyer claims the invoice in Annex-A.
iii. Rejected: Incase buyer rejected the invoice the status of the invoice will change to
rejected, Supplier cannot perform any action on the rejected invoice.

It must be noted that Invoices can be claimed upto 6 months back as already being practiced.

Once all the invoice are fed by the Seller, the Annexure-C must be submitted using
option.
Similarly, a Buyer can reject any invoice that does not correspond to Him and was wrongly
booked against him, by selecting the particular invoice and clicking the Reject button. After
Rejection, the Seller cannot make any change to rejected invoice and will have to feed a new
invoice with correct buyer and particulars.
After 1stJanuary, 2017. THE manual entry of the invoice, except the special procedures, will be
disabled and Registered Tax payer will only be able to Claim the invoice.

Guide for Sales Tax Return (Filing Annex-C, A & I)

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Process Changes in Sales Tax Return (Filing Annex-C, A&I)

For ease of the user to prepare Annexure-C, direct link to Annexure-C has been provided as
shown below.

Sales Tax With-held:

There has been a change in the process of STWH feeding. Earlier, the Tax payer was able to feed
the STWH amounts in two ways i.e. either with Purchase/Sales Invoice or separately as STWH
document type.
For ST Return 2016-17 onwards, STWH can only be processed as a separate Invoice of STWH
Type. Option for specifying the STWH Amount in Invoice has been disabled.
It is noteworthy that invoice of STWH can only be claimed with in the same month as that of the
STWH Invoice. If not consumed in the same month, the Invoice will be lapsed. In the Purchase
Data Search screen, the STWH Invoice will be automatically selected and imported as invoices
are claimed using Load Data option.
In Annex-C screen, a new Sale Type is introduced with the name Electricity supplied to
marble/granite industry (non- Adjustable).

Guide for Sales Tax Return (Filing Annex-C, A & I)

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Process Changes in Sales Tax Return (Filing Annex-C, A&I)

b. The calculation of Sales Tax on sale type Electricity supplied to marble/granite industry
(non- Adjustable) will be calculated on the basis of:
i. Tax calculation @ 1.25/KWH
ii. Formula to calculate Sales Tax will be = Quantity of units x 1.25Rs.
iii. User will input Quantity of units consumed.
iv. Units of measure shall be KWH.
v. Tax Rate will beRs.1.25/KWH.
vi. The tax on sale type Electricity supplied to marble/granite industry (nonAdjustable) is not adjustable therefore it will not be a part of output tax directly
payable. The sales tax calculated on this sale type will be displayed in Sales Tax
Return row (32). As per Law (Ref: chapter XVI of the sales tax (Special
Procedures) Rules, 2007.)

ii.

Following menu buttons in Annex-C are changed:

a. Verify button is replaced with Submit Invoice button
functionality.

iii.

with same

b. Submit button is replaced with Submit Annexure button

with same
functionality.
A new column is added in Annex-C grid with the name Invoice Status, showing status of the
invoice as:
i. Un-Claimed: Until the invoice is not claimed by the buyer.
ii. Claimed: As soon as the buyer claims the invoice in Annex-A.
iii. Rejected: Incase buyer rejected the invoice the status of the invoice will change to
rejected, Supplier cannot perform any action on the rejected invoice.

Change in Annex-ASearching and Claiming Invoices

i.
ii.
iii.
iv.

Annex-A purchase invoices will be automatically added in the New Sales Tax Return driven by
Annex-C of the Sellers.
User does not need to enter all purchase invoices manually.
Manual invoice entry is eligible for all Un-Registered Sellers.
For Registered Seller invoices, with invoice dates between 1st February and 30th July, 2016,
can be entered manually against the monthly ST-Return from August 2016 to January 2017.
Annex-A can only be valid for the 6-months old seller invoices.

v.
Guide for Sales Tax Return (Filing Annex-C, A & I)

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Process Changes in Sales Tax Return (Filing Annex-C, A&I)

vi.

In order to search for seller invoices a new mechanism is embedded to search and import all
purchase invoices.

vii.

User will click Purchase Data button

screen will appear.

viii.
ix.
x.
xi.
xii.
xiii.
xiv.

In order to display all the invoices, click Search button.

All invoices will be displayed in the grid.
In order to search specific seller invoices.
Click Download Sample File link, to download the excel template file in which data is required.
Type sellers NTN numbers in the sample file as per template.
Click Browse button to select excel file.
Click Load Data button to start processing the excel file for extracting information into the
system.

xv.

All available invoices of sellers against NTN numbers will be loaded in the search grid as shown
in above screen.
Manually search invoice by typing related information in the NTN, From Date, To Date,
Amount and Doc Number fields and press Search button.
In case one or more record(s) is to be downloaded for verification, click the check boxes in the
first column of the grid and click Download button.
In case one or more record(s) is to be rejected, click the check boxes in the first column of the
grid and click Rejected button.
Click Back button to go back to ST-Return screen.

xvi.
xvii.
xviii.

xix.

from the menu bar, Advanced Search

Guide for Sales Tax Return (Filing Annex-C, A & I)

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Process Changes in Sales Tax Return (Filing Annex-C, A&I)

Change in Annex-I
i.

Annex-I debit/Credit notes will be automatically added in the New Sales Tax Return by
importing Debit/Credit data.

ii.
iii.

In order to import Debit/Credit Notes. Click Debit or Credit Data

Following screen shall appear.

iv.
v.

In order to display available Debit/Credit notes, click Search button.

All related Debit/Credit notes will be displayed in the grid.

vi.

In order to search Debit/Credit note by specific Seller/Buyer. Fill in one of the following search
criteria.
a. Type Seller/Buyer NTN in NTN field.
b. Select dates of Debit/Credit notes in the From Date and To Date fields.
c. Type amount of Debit/Credit Note in Amount field.
d. Type document number in the Document Number field.
Click Search button, all the relevant records will be displayed in the grid below.
Click Download Sample File link to download the excel template file in which data is required.
Type sellers NTN numbers in the sample file as per template.
Click Browse button to select excel file.
Click Load Data button to start processing the excel file for extracting information into the
system.

vii.
viii.
ix.
x.

xi.

button.

Amendments in Sales Tax Return for the Year 2016-17

Addition of Row (12a) on Sales Tax Return
Guide for Sales Tax Return (Filing Annex-C, A & I)
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Process Changes in Sales Tax Return (Filing Annex-C, A&I)

In sales tax return screen, a new row is introduced with the name Electricity supplied to
marble/granite industry (non- Adjustable).

The value of this field is calculated from Annex-C as described above in (Ref:Change in AnnexC) section.

Addition of Rows (7a, 7b & 7c)

Three new rows 7a,7b & 7c have been added in the new Sales Tax Return showing un-paid tax
amount from buyers/suppliers.

i.

ii.

In case Buyer/Supplier did not submitted the return of the specific time period, the un-paid tax
will be displayed in the subsequent ST-Return of corresponding Buyer/Supplier in ST-Return
Clause 7a.
The corresponding Buyer/Supplier will not be able to submit ST-Return until they pay the tax
displayed in ST-Return Clause 7a.

Guide for Sales Tax Return (Filing Annex-C, A & I)

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Process Changes in Sales Tax Return (Filing Annex-C, A&I)

iii.

iv.

In case corresponding Buyer/Supplier pays the outstanding tax displayed in ST-Return Clause 7a,
the ST-Return can be filed and the paid tax will be displayed in the ST-Return Clause 7c.
In case the non-compliant buyer/seller pays the outstanding tax in future, the amount will be
credited to the corresponding Buyer/Seller and is deducted from Clause 7c and displayed in STReturn Clause 7b.

Addition of Row (18a)

i.

A new row (18a) has been added which describes the Sales Tax return on retailers @ 2%. User
has to input the sales tax within the editable field mentioned against row (18a).

ii.

The turnover entered by the taxpayer will not be a part of output tax directly payable.(Ref: No
input tax adjustment for such retailers in case exclusive retailer registration, all sales invoices
as purchases available with inadmissible input tax.)

Change in Row (20)

iii.

The description of Row (20) is changed from Re-Meltable scrap sold by ship breakers to ReMeltable scrap @ Rs 5600/MT.

iv.

The sales tax value in Row (20) will be calculated from Annex-C, user does not have to input the
sales tax value directly on the return screen.

Guide for Sales Tax Return (Filing Annex-C, A & I)

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