FBR Mandates Trader & Shopkeeper Registration April 30th Deadline

A New Era for Business Registration in Pakistan

The Federal Board of Revenue (FBR) has introduced a significant change in business registration through S.R.O. 420(I)/2024. This article delves into the key aspects of this notification, focusing on mandatory registration for traders and shopkeepers.

Effective Date:

The registration requirement becomes effective on April 1st, 2024. This means all eligible businesses must complete the registration process by the deadline.

Who Needs to Register?

The notification mandates registration for all traders and shopkeepers operating in Pakistan. This encompasses a broad range of businesses, including those dealing in:

• Retail goods
• Wholesale goods
• Services (may vary based on further FBR clarifications)

Registration Methods:

The FBR offers multiple convenient options for business registration:

• National Business Registry (Tajir Dost): Businesses can register online through the Tajir Dost portal.
• Tax Asaan App: The FBR's mobile application, Tax Asaan, provides another user-friendly platform for registration.
• FBR Portal: The FBR website offers an online registration facility for businesses.
• FBR Tax Facilitation Centers: Businesses can visit their nearest FBR Tax Facilitation Center for in-person registration assistance.

Deadline for Registration:

All eligible businesses are required to initiate the registration process by April 30th, 2024. This provides a one-month window for businesses to comply with the new regulation.

Consequences of Non-Compliance:

If a trader or shopkeeper fails to register by the deadline, the Commissioner of Inland Revenue has the authority to register the business automatically. Additionally, Section 182 of the Income Tax Ordinance, 2001 (ITO 2001), may apply to non-compliant businesses, potentially leading to penalties and other consequences.

What to Expect After Registration:

Once registered, businesses will receive a unique registration number. This number will be crucial for various tax-related activities, such as filing tax returns and claiming exemptions.

Conclusion:

The mandatory business registration requirement under S.R.O. 420(I)/2024 is a significant step towards promoting a more organized and transparent business environment in Pakistan. By registering with the FBR, businesses can ensure compliance with tax regulations and gain access to potential benefits offered by the government.

This article was published at How to Register Business Under Tajir Dost Rule with FBR?