The customers shopping from big retail outlets including those in shopping malls will be entitled to get back 5 percent of the paid sales tax under the ‘cashback facility’ on eligible goods at approved outlets of Tier-1 retailers.
The Federal Board of Revenue (FBR) has issued a new procedure on cashback to customers here on Wednesday.
Customers can enjoy the facility on “eligible goods” i.e. goods on which sales tax has been paid at the standard rate or at the reduced rate of 12% as per serial number 66 of Table-I of the Sixth Schedule to the Sales Tax Act, 1990.
According to the procedure, the provisions of this chapter shall apply to the customers of Tier-I retailers who have integrated their retail outlets with the Board’s computerized system for real-time reporting of sales. All customers of Tier-1 retailers are entitled to redeem 5 percent of the sales tax paid as cashback on eligible goods of the tax amount as inscribed on the invoice issued by the Tier-I retailers.
Under the rules, all customers of Tier-1 retailers are entitled to redeem 5% of the sales tax paid as cashback on eligible goods of the tax amount as inscribed on the invoice issued by the Tier-I retailers.
To redeem the cash online, the customer shall log on to the Mobile application.
Soon after logging on, an independent FBR wallet account shall be created for each customer. The approved outlet shall also create an independent FBR wallet account for each customer. An identical FBR wallet account shall be created for each point of sale by the approved outlet. The customer shall verify the electronically generated invoice through the mobile application.
As soon as the electronically generated invoice is verified, the system shall automatically calculate the 5% amount of the tax paid on the invoice. The customer shall transfer the amount determined under sub-rule (7) into his FBR wallet account.
The customer may redeem the earned amount within one month of his purchases accumulated in his FBR wallet account on any approved outlet that shall refund the amount accumulated in the wallet account of the customer after ensuring that the earned amount is transferred from the customer’s wallet account to the approved outlet’s wallet account.
The approved outlet shall adjust the amount so refunded to the customer which shall be automatically uploaded from the approved outlet’s wallet account to the sales tax return of the approved outlet for the relevant tax period by auto-adjusting the output tax liability, FBR added.