ISLAMABAD: The Federal Board of Revenue (FBR) has directed its field formation to conduct post refund audit (PRA) of all refunds issued under Expeditious Refund System (ERS) within 45 days.
According to details, the post refund audit (PRA) of all refunds issued under ERS have to be completed within 45 days while the audit of all previously issued refunds where PRA was not done would also be completed within a minimum possible time. The field formation have also been directed to prepare an audit report on the basis of findings within 30 days of receipt of a file and send it to the Enforcement Division for further necessary action. Similarly the field formation had been empowered to decide case after issuing contravention report if any discrepancy is found in the sanctioned amount of refund.
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The FBR has also directed that if the case has been decided against such claimant, recovery proceedings against the refund claimant may be initiated by the Enforcement Wing of the relevant zones on an immediate basis.
The field formation has also been asked to examine following documents on random basis: a) Verification of purchase invoices/goods declaration of imported goods.
b) Payment of input tax by suppliers.
c) Sales invoices/goods declaration showing exports or zero-rated suppliers.
d) BCA or other evidence of remittance of foreign exchange.
e) Inventory/stock statements and consumption of raw materials in exported goods.
f) Verification of payments made through banking channels as per section 73 of the Sales Tax Act, 1990; and
g) The calculation of refunds should be cross-checked with local sales and exports.
