Karachi situation: extension in tax return filing deadline sought

In view of ongoing law and order situation of Karachi, tax practitioners, chartered accountants and Karachi-based taxpayers have urged the Federal Board of Revenue to immediately notify 15 days extension in due date of filing of sales tax and federal excise returns for the tax period of June 2011 to be filed by July 15, 2011.
Tax experts told Business Recorder here on Thursday that it is expected that the FBR would extend 10-15 days filing of sales tax and federal excise returns for the tax period of June 2011. The sales tax return for the tax period of June has special nature due to its closing period for most of the companies.
They have to file the sales tax and federal excise returns with due care and diligence in order to reconcile the closing figures with the balance sheets, income statements and others accounting reports. According to sources, a number of industrial and business areas remained closed during the last few days in Karachi.
The government should realise the practical difficulties being faced by business and trade and notify the extension in filing of sales tax and federal excise returns. It is not clear that why the government takes such kinds of decisions at the last moment, which creates uncertainty among the business community.
The FBR has to timely announce such extensions to avoid confusion among the business and trade. The timely announcement of extensions etc would facilitate the registered taxpayers in proper filing of returns. After e-filing of sales tax returns, the provisions of section 26 of the Sales Tax Act 1990 have almost become redundant. In case of e-filing of returns, there is no provision of filing of two sales tax returns, experts added.
It is worth mentioning that in lieu of filing of separate sales tax returns due to change of rate of sales tax under section 26 of the Sales Tax Act, the FBR had allowed taxpayers to separately mention the details of sales and purchase in the annexure of the sales tax returns for the tax period of March 2011. According to sub section 2 of section 26, in case of any change in the rate of sales tax during the month, the taxpayers are required to file separate returns.