Sales tax audits to be held at LCCI premises

The Collector Sales Tax Mohammad Ashraf Khan agreed with the LCCI President Mian Anjum Nisar to hold Sales Tax audits on the Chamber premises to curb growing complaints of questionable behaviour of the auditors.
During the meeting Anjum said that the sales tax auditors often demand irrelevant details, documents and press for higher value addition based ITP value, which is contrary to law, says a press release issued here on Wednesday.
The Sales Tax Collector stated that his department was ready to redefine the parameters for audits with the consultation of the trade bodies. On complaints of the LCCI members about misconduct and delaying tactics of the auditors, he said that such cases should be brought in to the notice of LCCI wherein the auditors would be asked to conduct audits.
He also agreed to set up a Sales Tax Help desk in Chamber to resolve day-to-day issues and the problems.
About LCCI complaints on delay in expediting refund claims, Khan said that the Sales Tax Department would host online module to expedite the process of the refund claims. On Section 73, he said that the CBR was working on it.
He, however, hoped that this issue would be ironed out in next few days and some relief would also be given in resolving cases pending under this Section.
To another question on Further Tax raised by the LCCI President, the Collector said that the adjustments of the Further Tax issue would also be resolved once dust on the Section 73 settles down.
On LCCI demand to apply uniform rates of sales tax across the board without any discrimination, as there is 20 percent Sales Tax on raw material and 15 percent Sales Tax on finished goods, he said that this issue is likely to be settled in the forthcoming budget.
Mian Anjum Nisar stressed upon the CBR to minimise documentation required under Section 66 to expedite the sales tax refund claims.
The current circumstances of economic recession, tough international competition and financial crunch in the country coupled with delay in release of the sales tax are aggravating liquidity problem, he added.
The LCCI chief also demanded of the CBR to allow input adjustment on usage of diesel as energy source or raw material for power generation at par with other resources like gas and furnace oil.
He also urged upon the government to immediately review the registration process of the sales tax to reduce burden of paper work and encourage healthy business environment in the country.
The meeting was also attended by former President Sheikh Mohammad Asif, Irfan Qaiser, Aftab Mughal, Mian Shafqat Ali, Iqbal Ibrahim, Mohammad Ali Mian, Mian Muzaffar Ali, Shafqat Saeed Piracha, Mubashar Sheikh and Dr Shehla Javaid Akram.