KARACHI: Sindh Revenue Board (SRB) has decided to cancel sales tax registration of more than 4,200 taxpayers who were unable to file their returns.
The officials said the SRB suspended sales tax registration of 4,338 taxpayers for non-filing of monthly returns and failure to discharge their liabilities on July 25, 2017.
SRB officials said around 100 taxpayers had responded to the notices and got their registration restored while most of them failed to fulfil the requirements despite repeated notices.
“Fair opportunity was given to the suspended taxpayers,” an official said. “So, de-registration process of 4,000 taxpayers would soon be launched.”
SRB officials said the taxpayers were suspended on the basis of non-compliance with returns filing and nonpayment for the period of March to June 2017.
The SRB was set up in 2010 and started operation in 2011 to collect sales tax services within the provincial jurisdiction. The sales tax registration is mandatory for providing or rendering services to recipients.
The suspension disqualifies a taxpayer from bidding to government projects, clearance of goods at the customs stage and claiming input adjustment for services provided in other provincial or federal jurisdictions.
An official said the registration with SRB increased as Public Procurement Regulatory Authority made the sales tax registration mandatory to participate in the government contracts. The official said contractors mainly obtained sales tax registrations.
