ISLAMABAD: Punjab Revenue Authority (PRA), through Punjab Finance Bill 2017, has decided to allow input adjustment or refund claims against any other law with condition of verification through tax invoice or goods declaration (GD).
As per the proposal, a registered person will be allowed to claim adjustment, deduction or refund of the tax paid or payable under any other law with the condition to furnish tax invoice or GD, bearing the name of claimant and its National Tax Number, in case of domestic purchases or imports, respectively.
As per interpretation of EY Ford Rhodes Chartered Accountants, the proposed requirement of furnishing documents or evidences to justify the legality of the input tax adjustment/ deduction or refund by the registered person gives an impression that the proposed STRIV system will only cater to the sales tax invoices issued under the Punjab Sales Tax on Services Act, 2012.
In that case, manual furnishing of tax invoices of goods and services or GDs for imported goods would be an additional burden, it said.
The bill also seeks to empower the authority to put restrictions on claim/ adjustment of input tax by issuing notification with the approval of the government.
The bill further proposed the restriction on adjustment of further tax and extra tax. The adjustment of further tax and extra tax charged under the Federal Sales Tax Act, 1990 has already been restricted in terms of clause ( r) of sub-section
(1) of section 16B of the PSTSA’2012.
