MULTAN: Multan Tax Bar Association (MTBA) has highlighted a significant following the issuance of SRO 350.
In a formal communication addressed to Ms. Mufeeza Iqbal, Member IT at the Federal Board of Revenue (FBR), the General Secretary of MTBA Muhammad Imran Ghazi emphasized the urgency of addressing this technical issue.
The problem arises from a provision introduced under rule 18(3) of the Sales Tax Rules via SRO 350 of 2024, dated March 7, 2024. This amendment stipulates that a buyer’s sales tax return remains provisional until the corresponding seller files their return for the same tax period.
If the seller fails to meet this deadline, the IRIS system automatically removes the invoices issued by the non-filing supplier from the buyer’s Annexure “A.”
The MTBA has flagged a technical limitation within the FBR’s portal, which currently prohibits adjustments within Annexures A and F for provisional returns. Consequently, un-submitted purchase invoices are automatically excluded from Annexure A at month-end. This leads to a corresponding reduction in the value of purchases and input tax adjustments within Annexure F.
The resultant negative net value for purchases in Annexure F, combined with unchanged values for consumption/sold goods, prompts the IRIS system to generate an error message prohibiting the submission of final returns. The error message reads: “NSTR-Negative Value(s) are not allowed in Annex F or Annex G or Return,” creating a significant hurdle for taxpayers trying to comply with filing requirements.
MTBA President Malik Khadim Hussain Maitla has urgently appealed to the FBR to intervene. Proposed solutions include enabling edits within Annexure F or exploring alternative measures to facilitate seamless filing of final sales tax returns. Addressing this technical glitch promptly is crucial to alleviating the current difficulties faced by taxpayers in complying with regulatory requirements.
The MTBA remains committed to working with the FBR to implement necessary reforms that streamline tax filing processes and enhance operational efficiency. As discussions continue, stakeholders are keenly awaiting a swift resolution to ensure minimal disruption to businesses and individuals adhering to regulatory obligations.
