FBR 60,000 sales tax notices annoy taxpayers

KARACHI - The FBR has issued some 60,000 sales tax notices to taxpayers which are based on incorrect selection of data and on importer criteria set by tax authorities for cross verification of input/output tax, claimed KCCI on Saturday. It has also been learnt that the notices had been issued even where no illegality was found, for instance in terms of section 7 of the sales tax act, a taxpayer can claim/declare input within 6 months. However, the notices were issued to both buyer and seller asking why input tax was not reflected in buyers and sellers account in the same month. KCCI Senior Vice President Jawed Bilwani, while talking to the Nation, said that likewise on PTCL charges FED in sales tax mode is applicable, whereas notices were issued to taxpayers that input tax claimed on PTCL bills were not shown by PTCL on their column of sales tax from which it is very obvious that PTCL has to show their output tax in FED column and customers declare same in sales tax column which could not be cross matched. He said that the FBR officials concerned are not heeding to such undue hassle for business community, however he has written a letter to the chairman FBR to take notice of it. He further said that he had advised the FBR authorities that instead of directly enabling revised return option, taxpayers should be allowed to clarify the minor working problems. Moreover, at first stage only notices to those suppliers be issued where no amount of sales was declared by them and any claimant had claimed input tax on it. No body from the FBR was available for comment.

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