As a result of this verification of status and authenticity of STRN
, the system will automatically deduct sales tax as per applicable rates.
Ahead of the software implementation on 1st July 2016, FBR has already started contacting the government departments and ministries to instruct their concerned staff to ensure that purchases are made from registered vendors as well as ascertain that vendors' STRN
and master-records with Accounting Offices are validated to avoid deduction of full applicable sales tax from respective vendors.
Under the system, the government departments and ministries would be required to deal with only those vendors who possess a genuine STRN
He said that while KCCI is in favour of bringing all the persons having threshold income in the tax net, all their members are necessarily required to produce NTN and STRN