Online BIN from next year : Old, new businesses to come under it

The government is likely to introduce online Business Identification Number (BIN) for the businesses from January 2015 in a bid to bring them under automated taxation system.
With the introduction of the system, both the existing businesses and the new ventures will have to obtain fresh BIN through online. The system is currently run under manual system.
As per the implementation plan for the new VAT and Supplementary Duty (SD) law, the system will come into force next year, officials concerned said.
The new law is scheduled to be effective from July 2015 that will replace the existing VAT law.
Currently, income taxpayers are obtaining fresh TINs through online. The income tax wing introduced the online TIN system from July 2013.
According to NBR data, there are 9,21,896 BIN holders across the country as of July 2013.
Of the BIN holders, local traders number 2,89,017 followed by construction units at 2,41,134, and service rendering units 1,67,419.
There are 1,11,023 commercial importers who have BIN. The number of general importers is 21,499 while exporters are 40,560. The number of VAT-registered manufacturing units is 51,244, according to the data.
A senior VAT official said currently less than 50,000 of the BIN holders submit return to the VAT offices due to absence of an automated system.
"The NBR has planned to introduce online VAT return system from July 1, 2015 in a bid to make the return submission process easier," he added.
The NBR will also introduce VAT refund system from August 2015 for businesses which will pay excess VAT during the purchase of raw materials and on other occasions, he added.
Sources concerned said the progress in the ground work for implementation of the new VAT law was satisfactory in order to enforce it from July next year.
The VAT and SD law, 2012, got approval of parliament in 2012 following recommendations of the International Monetary Fund (IMF). The development partner termed the existing law a distorted one. IMF tagged the condition of adopting a new VAT law with the disbursement of funds under the extended credit facility (ECF).
The new law is likely to scrap the existing multiple rates of VAT. It will be imposed at 15 per cent rate with a provision for refund system of the paid-up VAT on purchase of raw materials.