KARACHI: Federal Board of Revenue (FBR) has been asked to treat retailers filing sales tax return as active taxpayers.
According to a budget proposal received by the FBR, Section 214D introduced through the Finance Act, 2015 laid down certain conditions for automatic selection for audit of a person in income tax affairs.
- a) The return is not filed within the date it is required to be filed as specified in Section 118, or, as the case may be, not filed within the time extended by the Board under Section 214A or further extended for a period not exceeding thirty days by the Commissioner under Section 119; or
- b) The tax payable under Sub-Section (1) of Section 137 has not been paid.
Simultaneously immunity from selection for audit has been granted to persons registered as retailer under Rule (4) of the Special Procedure Rule, 2007, subject to the condition that their name remains on the Sales Tax Active Taxpayers’ list throughout the tax year, which means that the case of any aforesaid person who files the return of income late or fails to pay tax under Section 137(1) of the Ordinance, along with return of income, would not be automatically selected for audit under this Section.
