KARACHI: Karachi Tax Bar Association (KBTA) has written a letter to the Member Indirect Taxes of Federal Board of Revenue, Incharge Pakistan Revenue Automation Limited (PRAL) and Member Operation-FBR regarding the restriction of provincial Sales Tax Input Adjustment.
In the letter, General Secretary KTBA Muhammad Aleem has stated that the issue of provincial Sales Tax Input Adjustment for the tax period of May, 2014 should be redressed.
Through the letter, he further stated that about the electronic sales tax returns for the month of May, 2014 which were required to be submitted by 15 June, 2014, FBR’s web portal was denying the adjustment of the input tax related to the sales tax paid on provincial services which is against the spirit of Memoranda of Understanding (MoU) signed between FBR and provincial governments.
He further said that the restriction is also in violation of SRO 212 (I)/2014 dated 26-3-2014.
KTBA has requested FBR in the letter to look into the matter on urgent basis for the larger interest of the taxpayers.
