SALES TAX ISSUES POINTED OUT BY INCOME TAX BAR ASSOCIATION KARACHI

SALES TAX ISSUES POINTED OUT BY INCOME TAX BAR ASSOCIATION KARACHI <!--[if gte mso 10]> SALES TAX ISSUES POINTED OUT BY INCOME TAX BAR ASSOCIATION KARACHI By Mr. Akhtar Javed, Advocate, Lahore The Income Tax Bar Association Karachi held a seminar on 5-1-2004 where Mr. Shahid Ahmad, Member Sales Tax, was invited to listen the grievances of the taxpayers and tax practitioners. During the proceedings, certain practical difficulties relating to sales tax were pointed by the Association, Taxpayers and Tax practitioners. The Member Sales Tax advised Dr. Ashfaq Ahmed Tunio, Secretary Sales Tax Law and Procedure to take the notes of the meetings and record the issues pointed out. Vide its letter C.No. 3(8)STL&P/04 dated 10-1-2004, Central Board of Revenue has been pleased to issue the rulings/instructions on the issue pointed out in the aforesaid seminar. The issues and C.B.R.'s instructions .thereon are reproduced in the following paragraphs: ISSUE C.B.R.'S INSTRUCTION Feeding errors by KPOs cause problems: a person erroneously shown as non-filer has to get NOC from the Collectorate, which is then submitted to STARR database in Lahore, a time consuming exercise. Collectors (Hqrs.) and (Enforcement), . Karachi are advised to look into this issue, and take steps to resolve the same in consultation with STARR within 3 weeks of this letter. The possibility of electronic transmission of returns data from National Bank may also be explored. Pending refund claims for the period prior to STARR. Collector (Enforcement) Karachi has already been directed to look into the matter for early resolution on case to case basis. Refund amount in appeal cases. All such claims may be finalised on merit within 60 days of receipt of the appellate order in cases where the Collectorate has not filed appeal or has filed appeal but does not hold a stay order. Uniform list of minimum documents to be prescribed for registration. Collectors may suggest lists of minimum documents required for registration. Applicants who want to set up a manufacturing unit should be provisionally allowed status as manufacturer. In case the Collector, on the basis of documents furnished by the applicant, is satisfied that the importer genuinely intends to set up a manufacturing unit, he can provisionally register him as manufacturer. In some cases Board has asked Collectors to deregister persons who applied for transfer of registration In case of applications for transfer of registration, the units shall not be de-registered, but the procedure under rule 6 of Registration, Voluntary Registration and De‑Registration Rules, 1996 will be followed. De-Registration problem is very slow. the Collector fails to dispose of the application within prescribed period of 6months, the applicant may be considered de-registered. If Collectors should ensure that the de-registration process should be completed within time specified in section 21(1) of the Sales Tax Act, 1990. The Collectors do not remove units from the list of blacklisted/ suspected units even after clean audit report. Board has issued Sales Tax General Order No. 6/2003. dated 20-12-2003 which prescribes a specific procedure for the purpose. Collectors should ensure that the inquiry or audit should be completed within 90 days, and person who are cleared through proper audit/inquiry are removed from the list within 10 days.