The National Board of Revenue (NBR) has allowed five more companies to sell value-added tax (VAT) special software. As a result, 48 companies will be able to sell special software. Earlier, 43 companies were allowed to sell VAT special software.
Businesses with an annual turnover of more than Rs 5 crore are required to use special VAT software.
Sources in the NBR’s public relations department confirmed the information on Monday (November 8th).
The feature of VAT software is that it will automatically update all types of accounts as soon as the purchase and sale invoice information is entered. Different VAT rates are also given in the software. This software has the opportunity to store the information of each transaction separately. According to the VAT Act, importers or producers of wholesale or retail traders have to use this software only if their sales exceed Rs 5 crore per annum. According to the latest data, 280,000 companies have registered for Business Identification Number (BIN), also known as VAT registration. Using which a business organization collects VAT collected against the sale of various goods and services and deposits it in the government treasury.