ISLAMABAD: Federal Board of Revenue (FBR) has directed the Regional Tax Office Karachi II to recover Rs181.36 million from two black listed persons, namely M/s Samad Enterprises and M/s Jawed Sons. The persons were allowed sales refunds by RTO Karachi. FBR directed the RTO to fix the responsibility against the persons at fault and start legal proceedings for expeditious recovery of the amount.
According to details, Regional Tax Office allowed sales tax refund to M/s Samad Enterprises NTN 3226526-3 and M/s Jawed Sons NTN 3226493-3 who were blacklisted by the department. M/s Samad Enterprises received Rs70.31 million and Jawed Sons received Rs111.05 million in the head of sales tax refunds.
According to Rule 12 (b) (ii) of the Sales Tax Rules 2006, issued vide SRO 555 (1) 2006 dated 5th June, 2006, the order for blacklisting and the time period for which any refund or Input Tax claimed by such person.
Further, refund claimed by any other registered person on the strength of invoices issued by him from the date of his registration will be inadmissible.
Federal Board of Revenue mentioned that according to law the refund amount was required to be recovered, which was not done. This resulted in loss of government revenue amounting to Rs181.36 million.
