I.  EXECUTIVE SUMMARY

Every Registered Person, being a private or public limited company, is required to file Annual Sales Tax (ST) Return by 30.9.25 as per Form STR-10 (Attachment 3266.1) of the ST Rules. 

In case of delay in filing the Annual Return (a) upto 10.10.25, there is a penalty of Rs 200 for each day of default (b) delay over 10.10.25 or non-filing, there is a penalty of Rs 10,000.

II. DETAILS

Section 26 & Rule 17 relating to this TLQC are reproduced below in Italics for ready reference:

1.1      Section 26 –with emphasis ours in bold

26. Return.– (1) Every registered person shall furnish not later than the due date a true, complete and correct return in the prescribed form to a designated bank or any other office specified by the Board, indicating the purchases and the supplies made during a tax period, the tax due and paid and such other information, as may be prescribed;

Provided that the Board may, by notification in the official Gazette, require any person or class of persons to submit return on quarterly basis:

Provided further that the Board may, by notification in the official Gazette, require any person or class of persons to submit such return as may be prescribed annually in addition to the monthly return or quarterly return:

Provided also that the return filed electronically on the web or any magnetic media or any other computer readable media as may be specified by the Board shall also be deemed to be a return for the purpose of subsection (1) and the Board may, by notification in the official Gazette, make rules for determining eligibility of the data of such returns and e-intermediaries who will digitize the data of such returns and transmit the same electronically under their digital signatures.

(2A) The officer of Inland Revenue may, by notice in writing, require any person who, in his opinion, is required to file a return under this section for a tax period or tax periods but who has failed to do so, to furnish the return or returns within fifteen days from the date of service of such notice or such longer or shorter period as may be specified in such notice or as the officer of Inland Revenue may allow:

Provided that the notice under this sub-section shall only be issued within fifteen years from the end of the financial year in which the return was to be filed, in cases of tax fraud and five years in all other cases.

(3) A registered person may, subject to approval of the Commissioner Inland Revenue having jurisdiction, file a revised return within one hundred and twenty days of the filing of return under subsection (1) or, as the case may be, sub-section (2), or under clause (a) or clause (b) of section 27, to correct any omission or wrong declaration made therein:

Provided that the approval under this sub-section shall not be required if revised return is filed within sixty days of filing of return and either the tax payable therein is more than the amount paid or the refund claimed therein is less than the amount as claimed, under the return sought to be revised.

(4) Notwithstanding the penalties prescribed in section 33, if a registered person wishes to file revised return voluntarily along with deposit of the amount of tax short paid or amount of tax evaded along with default surcharge, whenever it comes to his notice, before receipt of notice of audit, no penalty shall be recovered from him:

Provided that in case the registered person wishes to deposit the amount of tax as pointed out by the officer of Inland Revenue during the audit, or at any time before issuance of the show cause notice, he may deposit the evaded amount of tax, default surcharge under section (34), and twenty five percent of the penalty payable under section 33 along with the levied return:

Provided further that in case the registered person wishes to deposit the amount after issuance of show cause notice, he shall deposit the evaded amount of sales tax, default surcharge under section 34, and full amount of leviable penalty under section 33 along with the revised return and thereafter, the show cause notice, shall stands abated.

(5) The Board may, by notification in the official Gazette, require any person or class of persons, for any goods of such description or class, to furnish such summary or details or particulars pertaining to the imports, purchases and supplies during any tax period or periods, in such format as may be specified.

1.2   Filing of Annual ST Return - Rule 17 & Form STR-10

17. Filing of Annual Sales Tax return.— As stipulated in second proviso to sub-section (1) of section 26 of the Act, every registered person, being a private or public limited company, shall  file annual sales tax return, in the Form as set out in STR-10, for a financial year  by  the  30th  September of the following financial year, with the Collector having jurisdiction.

2.   Form

The details required for filing the Annual ST Return are given in Form STR-10 (Attachment 2902.1).

3.   Penalty

As per Section 33, in case of delay in filing the Annual Return,

(a) upto 10 days (i.e. till 10.10.25), there is a penalty of Rs 200 for each day of default (Serial 1) and

(b) delay over 10 days (i.e. after 10.10.25) or non-filing, there is a penalty of Rs 10,000 (Serial 10).

III. Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com

Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)