PESHAWAR: Khyber-Pakhtunkhwa Revenue Authority has sought Rs1.9 billion from FBR as input tax adjustment under sales tax on services.
The KPRA, in its official communication to the FBR, requested for early payment of the amount payable under input tax adjustment as, it said, the current financial year was coming to a close on June 30.
The FBR, on the other hand, has so for shown lukewarm response in the matter which is not only violation of memorandum of understanding signed between the FBR and KPRA to address such issues but also tantamount to denying the lawful rights of the province, a statement said.
It is pertinent to mention here that KPRA had signed a memorandum of understanding with FBR on November 23, 2016 for input adjustment of sales tax on goods and services, according to which FBR is bound to pay the aforementioned amount.
According to sources, if FBR did not pay the outstanding amount in the next few days, the Authority will have no other option but to take necessary measures under the law.
It is to remind that the Authority had already written a letter to the FBR on May 8, highlighting the outstanding amount payable to KPRA, the response of which is still awaited.
