The KCCI had already urged the Chairman, CBR, to allow adjustment/deduction of 'further tax' from the input tax as before, by deleting the words, 'Excluding the Amount of Further Tax' from Section 7(I) of Sales Tax Act, 1990, as inserted in it vide Finance Act, 2003.
This was stated by Siraj Kassam Teli, President, Karachi Chamber of Commerce and Industry (KCCI) while chairing the meeting of General Sales Tax and Refund Sub-Committee of the KCCI held in the Chamber on Saturday, to formulate its recommendations on harsh and irritant provisions of the Sales Tax Act, 1990.
The Chamber chief said, "However, on the contrary, amendment in Filing of Monthly Return Rules, 1996 has been made, making room for separate payment/ deposit of further tax along with the monthly Sales Tax Return-Cum-Payment Challan on sales to unregistered persons."
He said this would further add to the miseries of the registered persons, particularly exporters, as their huge accumulated funds are already lying with the government awaiting adjustment/refund. "We do not mind separate column for further tax but its adjustment must be allowed," he added.
Teli also proposed that amendments should be made in the new format of Sales Tax Return-Cum-Payment Challan, as issued vide SRO 1090(I)/2003 dated December 30, 2003, by adding a new column namely 8(e),'All other purchases', to show those purchases, which are taxable but purchased from unregistered persons; also purchases for which no input has been claimed; as well as the purchases made from enrolled persons whose input is not allowed, so that aggregate of all purchases given in columns 8(d) and 8(e) are matched or tallied with the inventory and value of goods and consequently with the financial record under the head "Purchases".
Abdul Majeed Memon, Vice-Chairman of the Sub-Committee, observed, "This will remove the difference of value of goods and inventory in the records of the sales tax and income tax and thus save the tax payers from problems faced by them at the time of audit."
The other problems discussed in the meeting were: issue of a list of 518 suspected units by the Collectorate of Sales Tax (Head Quarters) on the suspicion of issuing fake and flying invoices without giving any reason, explanation, investigation, information, prior notice or any concrete evidence to support the allegation against them, and urged the CBR to immediately withdraw it.
The meeting, which was largely attended by the members, also included Mohammad Saeed Shafique, S.V.P, and members of the managing committee, A.Q. Khalil, Muhammad Iqbal Mandvia, Aamir Abdullah Zaki, Iftikhar Ahmed Vohra, S. Jawed Iqbal Magoon, Junaid Ismail Makda and Sales Tax experts, practitioners and representatives of various trade associations.
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