EXPLANATORY NOTES FOR SRO 895(1)/2008
Federal Board of Revenue has issued a Notification (Income Tax) / SRO 895 (1)/2008, on 27th August, 2008. Following are its explanatory notes:
This SRO is being issued in consequent to the introduction of a new provision in the Income Tax Ordinance, 2001 through Finance Act, 2008 which has given powers to the Commissioner to require any person to install and use an electronic tax register of such type and description as may be prescribed for the purpose of storing and accessing information regarding any transaction that has a bearing on the tax liability of such person. This provision of law is an importance step towards the documentation our economy and now the sale transactions of big retailers and whole sellers may be audited for the taxation of their income. This provision will not only help to assess the real tax liability of a person but will also reduce the discretion of the department which may be used for assessing such sale transactions by bald estimation.
For the above purpose operational legal provisions were also required which have been incorporated in the income Tax Rules, 2002 through the above SRO prescribing the modus operandi of installation, use, identification number, maintenance, and inspection by the tax authority of the Electronic Tax Register (ETR).