- The Federal Board of Revenue (FBR) has explained the value of supply for sales tax levy during tax year 2024.
- The FBR has provided a comprehensive explanation of the value of supply as outlined in the Sales Tax Act of 1990.
- The value of supply is defined as the consideration in money that the supplier receives from the recipient, excluding the amount of tax.
- There are provisions and exceptions to ensure a fair and accurate assessment of the value of supply.
- A Valuation Committee will determine the accurate value in cases where the declared value appears incorrect.
- The Act also addresses trade discounts, special nature transactions, and imported goods.
- The value of supply does not include subsidies provided by the government for electricity or natural gas consumers.
- The value of supply for registered persons purchasing used vehicles is based on the difference between the sale and purchase price.
- The FBR retains the authority to fix values for imported goods or taxable supplies.
- The clarification aims to enhance transparency and consistency in the application of sales tax.
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
