The Federal Board of Revenue has empowered the collectors of sales tax to allow condonation of time period upto one year or extensions under Section 74 of the Sales Tax Act, reflecting a major facilitative measure for the business community. The FBR on Thursday issued Sales Tax General Order (STGO) 8 of 2009 to delegate powers to the respective Collectors of Sales Tax and Federal Excise.
The STGO No 54 / 2008 has been rescinded and the cases already under process in the Board or the RTO/LTU under the said STGO shall be transferred to the concerned collector. According to the procedure, the FBR has empowered the collectors for condonation of time period and extension under section 74 with a view to mitigating the hardships of taxpayers. It would also ensure transparency and fairness in deciding cases of condoning time delays.
Under the new procedure, the registered person shall apply to the collector having jurisdiction for extension of time period specifying the grounds or reasons of delay. The Collector after considering the grounds or reasons mentioned therein shall examine the case for decision.
The collector may solicit further information/ documents from the registered person or his authorised representative and the Collector shall decide the matter on merit in each case within thirty days from the receipt of the request in the RTO or LTU.
In case the collector calls for further information, the said period shall be reckoned from the day of receipt of such information provided that such extended period shall not exceed fifteen days in addition to time stipulated and the Collector shall record reasons for approval or rejection of the request of the registered person / applicant.
If there are valid reasons, the Collector may condone delay up to one year beyond the limitation provided under the statutory provisions of Sales Tax Act or rules made thereunder. The cases of limitation under the Federal Excises Act, 2005 or rules made thereunder shall, mutatis mutandis be disposed of under the aforesaid provision. The collector shall furnish a monthly report of cases processed in a calendar month to concerned Director General on seventh of every month.
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