SN008·Sale of Third Schedule goods

What it covers

Third Schedule goods are taxed on the maximum retail price printed on the pack, regardless of the price at which the transaction occurred. Tax is accounted for at production or import rather than at each point of sale, which is why the base does not move as goods travel down the chain. Most branded fast-moving consumer goods sit here.

Who needs to test this

Every distributor and wholesaler, in every sector — this scenario appears in the applicable list for distribution activities across the board. It is mandatory for FMCG registrations and effectively unavoidable for anyone moving branded packaged goods.

Payload notes

• The excluding-tax sales value is zero. The retail price field carries the taxable base instead.
• The retail price field is a line total: printed MRP multiplied by quantity, not the unit price.
• Sales tax is the rate applied to that line total.
• Selling below MRP does not reduce the tax. Neither does a discount.
• Further tax can still apply where the buyer is unregistered, so the two are not mutually exclusive.

Common pitfalls

• The single most common integration failure. Taxing transaction value instead of retail price produces a calculation mismatch on every line.
• Submitting unit MRP rather than MRP times quantity understates tax on any line with quantity above one — and passes silently on quantity-one test invoices, which is how it survives sandbox and fails in production.
• Populating both value fields fails. On a Third Schedule line the sales value belongs at zero.
• MRP must be recorded against the item. A Third Schedule classification with no retail price fails before the tax check even runs.

Errors you may hit

• 0102Calculated tax does not match for 3rd Schedule goods
• 0090Fixed notified value or retail price is required
• 0300A numeric value is invalid

Which registrations require this

Activity and sector combinations that must pass SN008 in sandbox, per FBR’s published mapping.

Reference mapping only. The eligible-scenarios view inside your own sandbox environment is authoritative for your registration.

Related scenarios

• SN027Third Schedule goods sold to end consumers by retailers
• SN001Standard rate goods sold to registered buyers