ISSUANCE OF SERIALLY NUMBERED SALES TAX INVOICES

ISSUANCE OF SERIALLY NUMBERED SALES TAX INVOICES <!--[if gte mso 10]> ISSUANCE OF SERIALLY NUMBERED SALES TAX INVOICES By Akhtar Javed, Advocate, Lahore Section 23 of the Sales Tax Act, 1990 requires a registered person making taxable supply to issue serially numbered tax invoices at the time of supply of goods containing various particulars. Collector of Sales Tax, Karachi (East) has reported C.B.R. that some registered persons who are engaged in multiple business activities are issuing Sales Tax invoices with same serial number but with different dates to depict various commodities. He has further stated that certain units issue same serial numbered invoices with the alphabet corresponding to the business activity e.g. "Y" for yarn, "D" for dying etc. 2. Board vide its Letter C. No. 3(35)STP/98 dated 19.11.2002 has observed that issuance of invoices in a way as mentioned above is contrary to the provisions of section 23 of the Sales Tax Act, 1990. However, keeping in view that such practice is existing in the field, Board has advised the Collectors of Sales Tax that invoices issued in such manner up to 20-11-2002 may be accepted provided no serious contravention is involved and conditions laid down under section 73 of the Sales Tax Act, 1990 have been ful filled. 3. As evident from the said letter, the issue pertains to cases where the registered persons are engaged in multiple business activities and are issuing sales tax invoices with the same serial numbers C.B.R. in its letter dated 19-11-2002 has advised the registered persons issuing invoices with same serial numbers to stop this practice and make purchases/supplies against progressively serial numbered invoices for the financial year indicating full detailed description of goods i.e. quality/variety/category/count/weight/ packing, etc.