The Central Board of Revenue (CBR) has decided to issue notices for carrying out audit of 32,000 registered retailers/manufactures, who failed to submit final sales tax returns up to December 31, 2004 for de-registration with the sales tax department. In budget 2004-2005, the turnover tax scheme was abolished and threshold of exemption for both manufacturing as well as retailers was fixed at Rs 5 million per annum. Therefore, retailers and manufacturers having annual turnover less than Rs 5 million were not subject to sales tax.
However, they were bound to file final sales tax returns up to December 31 for availing the facility of de-registration. Those persons who filed returns with department were exempted from sales tax audit.
The CBR estimated de-registration of 42,000 taxpayers as a result of change in exemption threshold in budget 2004-2005. So far, 10,000 taxpayers have filed their returns and the remaining 32,000 would receive notices for carrying out routine audit.
Official sources told Business Recorder on Sunday that the CBR has no intention to extend the deadline of December 31, 2004, which was given to retailers and manufacturers to de-register themselves after filing of last sales tax return. However, the CBR will conduct audit of all those persons, who did not get benefit of de-registration scheme.
When asked whether the CBR will extend the date in future, officials said that the CBR was not considering to extend date for persons who have been given six months to avail the facility. Even after lapse of six months, if they are not interested in de-registration, they have to go through the routine audit procedure. Moreover, the department thinks that extension in date will not serve any purpose.
In this connection, the CBR will serve notices to all those taxpayers for the purpose of audit, officials added.
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