The Central Board of Revenue (CBR) has amended Sales Tax Act 1990 to empower the collectors to blacklist or suspend sales tax registration of a person involved in issuance of fake invoices, evaded tax or committed tax fraud.
The CBR has also amended section 8 (Tax credit not allowed) of the Sales Tax Act so that a registered person shall not be entitled to reclaim or deduct input tax on fake invoices.
According to Finance Bill 2004, section 21 has been substituted with the following section, namely;-
"21. De-registration, blacklisting and suspension of registration.- (1) The Board or any officer, authorised in this behalf, may, subject to the rules, de-register a registered person or such class of registered persons not required to be registered under this Act.
(2) Notwithstanding anything contained in this Act, in cases where the Collector is satisfied that a registered person is found to have issued fake invoices, evaded tax or has committed tax fraud, he may blacklist such person or suspend his registration in accordance with such procedure as the Board may, by notification in the official Gazette, prescribe."
Comments
Comments are closed.