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Home Breaking News

FBR announces procedure for condonation of sales tax cases

byCT Report
22/09/2020
in Breaking News, Islamabad, Latest News
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ISLAMABAD: Federal Board of Revenue (FBR) announced procedure for condonation of time limit in sales tax cases.

The FBR issued Sales Tax Circular No. 02 of 2020 for the purpose of disposal of requests for condonation of time limit, and directed field formation including LTOs, MTO, CTOs and RTOs to process the taxpayers’ requests for the condonation of time limit under Section 74 of Sales Tax Act, 1990 read with SRO 394(I)/2009 dated May 21, 2009.

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The FBR directed the field formation to follow the procedure:

  1. Whether any application for condotnation submitted by the taxpayer with field formation?

If ‘yes’, decision taken thereon by the field formation.

  1. Genuineness/authenticity of the reasons narrated for condonation sought by the taxpayer.

If ‘yes’, elaborate with details along with supporting document.

  1. Whether the reasons for delay in seeking condonation on the part of the taxpayer are cogent?

If ‘yes’, elaborate with details along with supporting documents.

  1. Revenue impact (in case of registered person as well as other persons involved), if any.

If ‘yes’, amount to be mentioned.

  1. Whether any system/technical glitch involved in the case?

If ‘yes’, details of the system glitch along with supporting documents.

  1. Whether the condonation involved transaction of any closed, de-registered or any person whose registration has been blacklisted or suspended?

If ‘yes’, then specify with reason.

  1. Whether the condonation involved adjustment/refund of amount which has already been claimed by taxpayer?

Specify in detail.

  1. Whether supplier discharged due sales tax on supply after issuance of invoice and duly verified from Annex-C in the condonation cases of Power Sectors etc?

If ‘yes’, specify the date and month of return in which the same has been incorporated.

  1. Both buyer and supplier are active on Active Taxpayers List (ATL).

‘Yes’/’No’

  1. Whether payment is made to supplier through banking channel as envisaged under Section 73 of the Act (In the case of Power Sector and provincial revenue authorities input)? In case, partial payment is made to supplier, balance payable to supplier with reason.

‘Yes’/’No’.

The FBR said that the procedure for condonation cases shall become applicable with effect from September 21, 2020.

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