Adjustment of ST paid on services 106 mega entities granted interim relief by FBR

On the directives of high courts, the Federal Board of Revenue has granted interim relief to 106 big companies and corporate entities by accepting their sales tax returns to allow adjustment of sales tax paid on services to the provinces under the provincial laws.
In this regard, the FBR has issued instructions to the Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) regarding writ petitions filed in high courts Challenging the vires of section 2(22A) of the Sales Tax Act, 1990. The FBR has also barred the LTUs and RTOs from taking any action under section 33 & 34 of the Sales Tax Act, 1990 with respect to returns filed manually within the due date of filing of returns by the said companies. Moreover, the Active Taxpayer status of these units would not be changed.
The FBR has also communicated National Tax Numbers (NTNs) and Sales Tax Registration Numbers (STRNs) of the said 106 units to the field formations. The FBR said the writ petitions challenging the vires of section 2(22A) of the Sales Tax Act, 1990 have been filed in the high courts of the country. The high courts have been pleased to grant interim relief by directing the Federal Board of Revenue and its functionaries to accept the sales tax returns of the petitioners electronically or manually by allowing adjustment claimed by the petitioners of Provincial Sales Tax on Services under the provincial laws subject to the final outcome of the writ petitions.
In compliance with the directions of the high courts, all Chief Commissioners are requested to accept manually filed returns of the listed petitioners and not to take any action under section 33 & 34 of the Sales Tax Act, 1990 with respect to return filed manually within the due date of filing of returns. The FBR has also directed the Pakistan Revenue Automation Limited (Pral) not to take any action with respect to Active Taxpayers status of the said 106 companies. This dispensation shall be available in respect of returns for tax period October, 2013 onwards and till further orders. Active Taxpayers status, if suspended in any of the above case may be restored, the FBR instructions added.