KARACHI: The Karachi Tax Bar Association (KTBA) has urged the Federal Board of Revenue (FBR) to further extend the date for e-filing of the monthly sales tax return as the taxpayers are facing difficulties in filing the returns online.
The KTBA, in a letter to the FBR chairman, said that sales tax invoices were not being updated on real time basis in the return of buyers as well as suppliers, which were causing delay in filing. “As the concept of real time invoice entry is still not enabled, this will again result in delay in filing Annexure C (sales data) for the tax period August 2016,” the KTBA said.
The KTBA said the supplier has to claim withholding sales tax in the same month of issuance of invoice. “This is a harsh step and needs review as the responsibility to check if the buyer is a withholding agent or not,” the KTBA said.
The retailers were given this option up till July 15, 2016. The tax body said that since the retailers were facing difficulties in the online system, they should be given sufficient time to avail this option.
The KTBA has also proposed the FBR to deduct Withholding Tax only from unregistered persons at the time of making payments. The association suggested the board to limit the scope of withholding tax regime to only unregistered persons and the same would be deducted not on the basis of accrual but at the time of making payments.
