In the case of a female buyer, the CNIC of her husband or father will be considered valid for the purchase. The law further provides that this condition will not apply if the value of purchases is below Rs50,000 in case sales are being made to an ordinary consumer.
The main purpose of the CNIC condition is for documenting business-to-business transactions and few transactions in a value higher than Rs50,000 by limited number of consumers and that too from sales tax registered person. This condition will help avoid, unverifiable and fictitious business buyers which results in huge sales tax losses in the value chain. The clarification came from FBR through a sales tax circular issued here to explain the amendments made in the Sales Tax Act, which made it mandatory for buyers to show CNIC on purchases made from a sales tax registered person. There are 41,484 such sales tax registered persons who are actually paying some tax with returns.
As per the amendment, if a purchase is made from a sales tax registered person, the CNIC number of the buyer is to be provided in limited situation. Provision of CNIC number does not mean that buyer has to be a registered person under the sales tax law. Sales to unregistered person can be made. It was also clarified that if it is subsequently proved that CNIC provided by the purchaser was not correct, liability of loss or penalty will not arise against the seller in case the sale is made in good faith.