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Home Islamabad

Adjustment of ST paid on services: FBR complies with courts orders

byCustoms Today Report
20/02/2014
in Islamabad, Latest News
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ISLAMABAD: In light of the high courts orders, the Federal Board of Revenue has granted interim relief to 106 big companies and corporate entities by accepting their sales tax returns to allow adjustment of sales tax paid on services to the provinces under the provincial laws.

The FBR has issued instructions to the Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) regarding writ petitions filed in high courts challenging the vires of section 2(22A) of the Sales Tax Act, 1990. The FBR has also barred the LTUs and RTOs from taking any punitive action under section 33 & 34 of the Sales Tax Act, 1990 with respect to returns filed manually within the due date of filing of returns by the said companies.

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The FBR has also communicated NTNs and Sales Tax Registration Numbers (STRNs) of these companies to field formations. According to the orders, the high courts have been pleased to grant interim relief by directing the Federal Board of Revenue and its functionaries to accept the sales tax returns of the petitioners electronically or manually by allowing adjustment claimed by the petitioners of Provincial Sales Tax on Services under the provincial laws subject to the final outcome of the writ petitions.

Complying with high courts directives, the FBR directed all Chief Commissioners to accept manually filed returns of the listed petitioners and not to take any action under section 33 & 34 of the Sales Tax Act, 1990 with respect to return filed manually within the due date of filing of returns. The FBR has also directed the Pakistan Revenue Automation Limited (Pral) not to take any action with respect to Active Taxpayers status of the 106 companies. This dispensation shall be available in respect of returns for tax period October, 2013 onwards and till further orders. Active Taxpayers status, if suspended in any of the above case may be restored, the FBR instructions added.

Tags: FBRIslamabad RegionTaxation

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