In a renewwed bid to ensure and raise revenue collection from business houses, the National Board of Revenue (NBR) has decided to get tough against those who are not using the electronic cash registrar (ECR) and point of sale (POS).
“We’ve found a large number of business entities in the country that are not using the ECR and POS. This is simply unfortunate,” a senior NBR official told UNB.He said the actual figure of sale and the VAT collection cannot be known if those devices are not used. “We’ve instructed our field offices to make sure that no business entity can run without the ECR or POS,” he said.In July 2008, the NBR issued an order making the installation of the ECR mandatory by 11 categories of service providers to check VAT evasion.The service providers are hotel, restaurants and fast food shops, sweetmeat shops, furniture sales centres, beauty parlours, community centres, posh shopping centres in metropolitan areas and relevant business organisation, department stores, general stores and other big and medium — wholesale and retail –business organisations.The order took effect on July 1, 2008 for the business organisations of all city corporations and district towns across the country.The revenue collection body asked the shops to immediately launch ECR system, said the official, adding that Vat commissionerates have been directed to monitor the implementation process and submit reports on noncompliance.Under the system, the businesses concerned will have to give the printed transaction slips to the respective customers. The customers have also been asked to take ECR-printed slips from the shops and to complain to the NBR if they are denied the slips by the shops.
The official said the NBR has decided to get harsh after a survey conducted by the Board finding that a large number of shops and food centres still do not use the ECR and POS.
Many business entities are even realising VAT from their clients, but not depositing it to the national exchequer, the NBR official alleged.If any ECR goes out of order, the business house will have to inform the VAT officials and machine suppliers by 24 hours. However, the business house will have to procure a new machine by 15 days. The service provider will have to maintain data manually until repairing the machine.
The invoices, released through the machine, will have the provision to mention taxpayers’ name, address, VAT registration number, invoice number, products name, quantity, price, VAT and machine number.
The ECR will have to issue ‘S’ report containing instant data of sales figure and VAT information while ‘D’ report will contain each day’s dataThe service providers will have to keep hard copy of ‘D’ report up to four years.
Each taxpayer’s data report will be called as ‘M’ report, which the business houses have to send to local VAT offices.