Many people ask how to register with KPRA, as the revenue authority has been operating in Khyber Pakhtunkhwa for many years. Here we will explain in details what documents are required for registration, and which businesses are required to register.
Who is required to be registered with KPRA
If a person whether an individual, firm or a company provides a service from his office or place of business in the province on which tax is applicable shall be required to register under this Act. In other words, if provides taxable services then such business must be registered themselves with KPRA.
Taxable service:
A taxable service is one that is listed in the First Schedule to the Pakhtunkhwa Sales Tax on Services Act First Schedule to the Pakhtunkhwa Sales Tax on Services Act, and which is provided by a registered person from his office or place of business, or through which he carries out economic activities.
Place of business
If a person rents, shares or otherwise uses a place in the province, and carries on his business or provides services from there. This activity may be complete or partial. It also includes those who are not physically present in the province but provide their services within the province.
If a person carries on his business or services in the province through someone else, such as an agent, franchise, branch or office, etc. Whether that other person lives in the province or not.
Economic activity
means any activity carried out by a person, whether permanent, regular or occasional, and the purpose of which is to provide services to another person. It includes:
An activity carried on in the form of a business, such as a profession, employment, trade or any other kind of work, whether for profit or not;
The provision or letting of property (movable or immovable) by way of rent, lease, licence or any other similar means;
Any one-time commercial venture, transaction or matter having the nature of a business or trade.
How To Register with KPRA
Documents Required for KPRA Registration
General Requirements
The following information must be provided whether an individual, firm or a company
- NTN Certificate
Business Letterhead - Authority Letter (if sending a consultant or representative instead of yourself)
- Utility Bills (Electricity or Telephone, not more than three months old and paid)
- Bank Statement (not more than three months old) or Bank Maintenance Certificate
- The business address should be the same as that mentioned in the NTN, given in the bank, utility bills and letterhead. The address should be the same everywhere.
Partnership Firm
For registration of a firm, Form “C” or “H Form”, NTN Certificate, and Authority Letter from all partners will be required.
Company
Updated Form A and 9 are mandatory, which contain the details of the directors and shareholding pattern.
If the company has been registered for less than 16 months, Form 1 will be used instead of Form 9. The certified copies are required which are issued by the SECP at the time of filing of these forms.
Compulsory registration
If the officer is satisfied that a person should have been registered under this Act but has not applied, the officer may register him by order in writing. In such case, the person shall be deemed to have been registered from the date on which registration was compulsory for him.
But no person shall be registered under force without notice. Such persons shall first be given an opportunity of explanation or hearing.
Additionally, a person who is required to register but fails to do so may be fined up to Rs. 100,000.
What you need to do after registering with KPRA
After registration, it is mandatory for you to file sales tax returns regularly every month. Whether there is NO business or any sale or purchase, it is mandatory to file at least one NULL or NILL return.
Otherwise, a minimum penalty of Rs. 9,000 will be imposed and also additional surcharge shall be payable for delay per day.
It is important to understand that some individuals or entities register with KPRA only to fulfil legal requirements, even though they do not actually provide any taxable services.
A common example of this is participating in government tenders, as KPRA registration is mandatory for submitting tenders.
What consequence will be faced if don’t not comply with KPRA
Once you register with KPRA, the most important thing to do is to file your sales tax return every month. But most people are unaware of this responsibility.
If taxpayers do not comply, after some time a notice comes from KPRA stating that the return will not be filed.
This notice warns that if you do not follow this instruction, you may be fined, and in case of non-payment of the fine, further strict action may be taken, even arrest by the police.
If you need any further information about how to register with KPRA please get in touch with us through our website by filling out the Contact Us form, or reach out via our social media accounts.
