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Home Breaking News

FTO directs FBR to resolve issues Faced by sales taxpayers

byCT Report
22/10/2024
in Breaking News, Latest News, National, Slider News
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MULTAN: Federal Tax Ombudsman (FTO) has taken serious notice of problems faced by sales taxpayers in complying with SRO. 1130(1)2024 and directed FBR to remove complexities arising out of this notification for buyers and sellers.

FTO has directed the FBR to issue guidelines to the Registered Persons on how to navigate the complexities arising out of SRO. 350(1)/2024.

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 “FBR should remove injustices caused to the sales tax taxpayers due to this SRO”, FTO directed the FBR. FBR should direct Member (IR-Operations), and Member (ST-Policy) to update IRIS in line with SRO. 1130(1)12024 without further delay and explore the possibility of further facilitation in the filing of sales tax returns by the buyers as well as sellers so far as possible and examine the issue of extension in the grace period of six days seriously as already allowed to the suppliers.

According to the FTO order, the perusal of problems/difficulties faced by the Complainants in juxtaposition with the provisions subsequently inserted through SRO. 1130(l)/2024 reflects that most of the issues, discrepancies, and difficulties have been resolved.

It is also observed here that this Forum recognizes the basic objective behind the issuance of SRO. 350(1)12024 i.e. to curb the menace of fake and flying invoices. However, the corrective measures should have not been done at a high cost in terms of inconvenience, inability to file the returns, disruption of the supply chain mechanism, and blockage of business operations.

In this vain, FBR needs to further consider the issues emanating from the operation of SRO. 350(1)/2024 and must extend facilitation and remove injustices caused to the sales tax taxpayers. During the hearing, some of the Complainants stated that though purchases of 3rd Schedule items have been exempted but buyers of other items still suffer They suggested that in such cases, the buyers should be made withholding agents of sellers.

The ARs/Complainants further pleaded that FBR should make the filing of sales tax returns more flexible to facilitate the taxpayers. They suggested that some mechanism should be developed that enables simultaneous filing of sales tax returns for entities engaged in mutual transactions as buyers and sellers. They also argued that under SRO.1130(l)/2024, a grace period of 6 days has been provided for the filing of sales tax returns by the suppliers, which needs to be extended reasonably to provide further facilitation.

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