Directorate General of Intelligence and Investigation Inland Revenue (IR) Federal Board of Revenue (FBR) has detected a Karachi-based branded fruit juice manufacture committing serious violation of the Third Schedule of Sales Tax Act, 1990 by not printing the amount of sales tax on the product.
Sources told Business Recorder on Monday that the agency apprehended that the manufacturer has been engaged in supplying fruit juices to the market without charging sales tax. During "mystery shopping" conducted by I&1, IR, Islamabad's mobile squad, it has been observed that a fruit juice with a brand name is being marketed with company located in main Khayaban-e-Ittehad, Phase-II, Ext. DHA, Karachi, without mentioning retail price and sales tax on the product. The aforementioned juice is available in different flavours, ie, orange, apple, cherry, mango, pineapple and strawberry and in different packing/sizes. The samples of the aforesaid product have been collected from the market. The company is selling branded fruit juices in different cities including Islamabad.
The said item falls in the Third Schedule of the Sales Tax Act, 1990. According to clause (a) of sub-section (2) of section 3 of the Sales Tax Act, 1990; a manufacturer is required to prominently and indelibly print or emboss the retail price along with the amount of sales tax on each article, packet, container, package, cover or label etc on the items mentioned in third schedule of the Sales Tax Act, 1990. In the instant case retail price and sales tax is not printed on the product, which creates suspicion that the said manufacturer supplies fruit juices to the market without charging sales tax. Since the unit falls under the jurisdiction of Directorate of Intelligence & Investigation (IR), Karachi, the regional directorate would carry out furtherinvestigation to ascertain the factual position, sources said.
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