AIRLINK 193.50 Decreased By ▼ -1.51 (-0.77%)
BOP 9.90 Increased By ▲ 0.13 (1.33%)
CNERGY 7.47 Increased By ▲ 0.11 (1.49%)
FCCL 38.25 Decreased By ▼ -0.52 (-1.34%)
FFL 15.78 Increased By ▲ 0.19 (1.22%)
FLYNG 25.79 Increased By ▲ 0.38 (1.5%)
HUBC 128.39 Decreased By ▼ -0.23 (-0.18%)
HUMNL 13.75 Decreased By ▼ -0.06 (-0.43%)
KEL 4.63 Increased By ▲ 0.14 (3.12%)
KOSM 6.23 Decreased By ▼ -0.07 (-1.11%)
MLCF 44.45 Decreased By ▼ -0.34 (-0.76%)
OGDC 202.75 Decreased By ▼ -0.85 (-0.42%)
PACE 6.44 Increased By ▲ 0.02 (0.31%)
PAEL 41.10 Decreased By ▼ -0.03 (-0.07%)
PIAHCLA 17.72 Increased By ▲ 1.00 (5.98%)
PIBTL 7.65 Decreased By ▼ -0.03 (-0.39%)
POWER 9.10 Increased By ▲ 0.06 (0.66%)
PPL 174.50 Increased By ▲ 0.59 (0.34%)
PRL 38.92 Decreased By ▼ -0.16 (-0.41%)
PTC 24.70 Decreased By ▼ -0.34 (-1.36%)
SEARL 110.33 Increased By ▲ 1.27 (1.16%)
SILK 0.99 No Change ▼ 0.00 (0%)
SSGC 38.41 Increased By ▲ 0.27 (0.71%)
SYM 19.70 Increased By ▲ 0.21 (1.08%)
TELE 8.31 Decreased By ▼ -0.05 (-0.6%)
TPLP 12.12 Decreased By ▼ -0.01 (-0.08%)
TRG 65.20 Increased By ▲ 0.41 (0.63%)
WAVESAPP 10.59 Increased By ▲ 0.02 (0.19%)
WTL 1.67 Decreased By ▼ -0.02 (-1.18%)
YOUW 3.94 Increased By ▲ 0.07 (1.81%)
BR100 11,853 Decreased By -34.9 (-0.29%)
BR30 35,204 Decreased By -14.9 (-0.04%)
KSE100 111,910 Decreased By -120.6 (-0.11%)
KSE30 35,050 Decreased By -85.8 (-0.24%)

LAHORE: The Sales Tax department has been barred from demanding a post-dated cheque accompanied by a bank certificate ensuring payment.

The competent authority ruled that this requirement imposes unreasonable restrictions on business activities. Also, it deprives individuals of utilizing their funds and contradicts the legislature’s intent.

The relevant forum held that banks can secure their interests through guarantees or maintaining accounts equal to the cheque sum, without restricting importers’ property rights.

According to the competent authority, Entry No.151 in 6th Schedule of the Sales Tax Act, 1990, the security which is demanded by the legislation is a post-dated cheque whereas the FBR/revenue department demands that this post-dated cheque should be accompanied with a banker certificate (Good for Payment).

In ordinary meaning, said the competent authority, cheque is a written order by the payer to a bank, where the payer maintains an account to pay a specified sum from his account. However, the cheque has been defined as a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.

Also, a cheque means a written order to a bank to pay the stated sum from the drawer’s account; the printed form on which a written order to a bank to pay the stated sum from the drawer’s account is written.

Copyright Business Recorder, 2024

Comments

Comments are closed.

Naveed Nov 25, 2024 10:44am
To help the taxpayers, the name of competent authority should have been mentioned in the articles. The information is vague and other taxpayers can't use it for reference if they are facing same issue
thumb_up Recommended (0)