The Federal Board of Revenue (FBR) has started issuing cheques to the manufacturers-cum-exporters on the day of filing sales tax refund claims through the newly introduced electronic Expeditious Refund System. Sources told Business Recorder here on Friday that the Pakistan Revenue Automation Limited (PRAL) had successfully processed refund claims under Expeditious Refund System in Lahore RTO Lahore.
A cheque amounting Rs 36,576 was delivered to F M Textile, Lahore. The unit filed the Electronic Refund Claim (ERC) on Friday and got the refund the same day. It was a pleasant surprise for the unit that payment of refund claim was made on the same day after filing it.
Under the facility of the Expeditious Refund System, the FBR will issue sales tax refund to 300-400 taxpayers falling within the jurisdiction of RTO Lahore. In all such cases, it is expected that the system would process the refunds on the same day, and cheques would be issued to claimants under the risk-based refund system. Initially, 300-400 taxpayers of RTO Lahore would be able to obtain refund only in 1-2 days due to filing of Electronic Refund Claim. The facility of issuance of the refund through Expeditious Refund System was witnessed by the concerned Chief Commissioner, experts of the World Bank, PRAL General Manager and officials of the FBR.
Sources said that the FBR has issued instructions to RTO Lahore to issue refund within a maximum period of seven days. These 300-400 taxpayers of the RTO Lahore would not be required to submit documents including invoices, credit notes, debit notes, goods declarations, bank credit advices, etc, for obtaining sales tax refund using Electronic Refund Claim (ERC).
The FBR has also issued detailed parameters for expeditious processing and payment of refunds. An electronic refund claim qualifies for expeditious payment of refund on fulfilment of the following conditions: The applicant should be manufacturer-cum-exporter, registered in RTO Lahore (or other RTO/LTU, with effect from tax period July 2010). The registered person should be ''active taxpayer'' and the amount of refund claim should also have been claimed in the corresponding Sales Tax/F E Return.
Moreover, the registered person should be registered as manufacturer-cum-exporter for this refund claim period. No short-shipment and export GD objection by Customs should be involved in any of the exports mentioned in this refund claim. All payments for purchases have to be made through banking instruments, by the registered person, as required under section 73 of the Sales Tax Act, 1990.
According to the parameters for claiming refuns, the refund should be claimed only to the extent of stock consumed. Refund claim amount has not been adjusted/claimed earlier. No short payment should be due against any of the returns filed so far. All utility connections like electricity, gas and telephone for which inputs are claimed in this refund should be used in the business premises and full payment of these bills to be made. The brought forward input tax amount in this claim from carry forward input tax amount of the previous claim(s) does not include quantities of raw material consumed in the exported goods covered in this claim. All the information provided in the RCPS format and this declaration is correct and the registered person shall be liable to legal action under the Sales Tax Act, 1990 in case of any misdeclaration is noticed by FBR staff posted in HQ or field formations, qualification criteria for expeditious refunds added.
Comments
Comments are closed.