The Central Board of Revenue (CBR) has decided to submit a list of around 400 sales tax and central excise defaulters to the National Assembly standing committee on finance in its next meeting on June 29, 2005. Official sources told Business Recorder on Tuesday that the committee would consider the list of tax evaders and defaulters on the basis of data submitted by the CBR.
The committee will also review the process of appointments in CBR, particularly the appointment of legal heirs of deceased employees etc.
According to CBR, the collectorates of sales tax are submitting updated lists of tax evaders to the Board for compilation of data for submission to the committee. The CBR wants to give an accurate list of defaulters to the committee. In this regard, the CBR has completed an exercise to confirm the names of defaulters with the collectors of sales tax/customs and Regional Commissioners of Income Tax (RCITs).
Most of sales tax defaulters are the companies that have issued fake/flying invoices and, on checking, nothing was found on the business addresses given by these units. A large number of companies are involved in issuance of fake invoices, and none of them is traceable on the given addresses. Some of these companies have been 'blacklisted' and subsequently included in the 'List of Suspected Units'.
These companies issued fake invoices and exporters claimed refund on the invoices of blacklisted units. The exporters contested that refund should not be blocked due to the reason that the blacklisted suppliers were not traceable. The factual status is that the exporters have paid sales tax on the goods purchased from the suppliers. These exporters had exported goods against supplies received from the suppliers who were later declared as 'blacklisted'.
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