The Federal Board of Revenue (FBR) is likely to block refund claims of 1,000 registered companies of Karachi, which have claimed/shown input tax of Rs608.252 million in their sales tax returns against their own National Tax Numbers (NTNs).
Sources told Business Recorder on Wednesday that the Directorate General Intelligence and Investigation Inland Revenue (IR) Karachi has detected the abnormal activity at Karachi and submitted detailed analysis and names of the units to Haroon Tareen Director General Intelligence and Investigation Inland Revenue. Out of 1,000 units, the list of 36 most suspected companies of Karachi have been communicated to the agency under first phase of the plan. Tareen promptly took notice of the situation and immediately communicated the concerned authorities to initially block claims of 30-36 units showing highest activity during July-2012 to October 2014.
The list of 36 companies available with Business Recorder revealed that companies falls within the jurisdiction of Regional Tax Office-I (RTO), RTO-II Karachi and RTO-III Karachi, which claimed Input Tax on Self- NTN by various units.
Data revealed that 408 units fall within the jurisdiction of RTO-I Karachi; 451 units RTO-II Karachi and 144 units fall within the jurisdiction of RTO-IIII Karachi. Total 1003 units fall within the jurisdiction of RTO-I Karachi; RTO-II Karachi and RTO-IIII Karachi.
According to Haroon Tareen, during examination/investigation of sales tax returns of almost 1,000 registered persons (falling under the jurisdiction of RTOs I, II and III of Karachi) by Directorate of (I &I) Karachi, it has been observed that a number of registered persons have claimed/shown input tax (amounting to aggregate of Rs 608.252 million) in their sales tax returns against their own NTNs, which is an abnormal phenomenon.
A startling aspect of the matter is that even inactive units have claimed benefit through this practice. Apparently the claim of inputs on self NTN is being used as a tool to adjust those amounts which are not adjustable in the normal mode, Director General Intelligence and Investigation IR said.
In view of the abovementioned observations, it is requested that necessary arrangements may be made immediately to block self NTN based input claims at the time of filing of sales tax returns and the relevant annexures. A report from the Director (I&I)-IR Karachi has been submitted to its headquarters in Islamabad.
As per report of Director of I&I IR Karachi, the Directorate has examined Sales Tax Returns of various registered persons and observed that a number of persons have claimed/shown input tax in their respective sales tax return against their own NTN which is quite abnormal phenomena. Complete date of such person has therefore been collected for further analysis for the period from July-2012 to October 2014.
No. of units who have claimed on self NTN reflected that 408 units pertains to RTO-I Karachi, input tax amount involved Rs 89.951 million; 451 units related to RTO-II Karachi, input tax amount involved Rs 410.891 million; 144 units pertains to RTO-III Karachi, input tax amount involved Rs 107.410 million and total 1003 units in RTO-I, II, III have involved an amount of Rs 608.252 million irrespective of the extent of amount claim.
Among 30 units, six are found to be as inactive units which claimed Rs 259.09 million on self NTN and showing their purchases with other suppliers as only Rs 46.682 million with 'Nil' import record. From the said analysis it is obvious that claim on self NTN is being used as a tool to adjust those amount which is not adjustable in the normal mode for the Prima facie following purpose:
Firstly, this has been done to create bogus purchases & then bogus supplies by the fake units.
Secondly, the oil marketing company has used self NTN to claim its GDs sharing with state oil company, which is not in its name. Thirdly, an oil and gas company has claimed provincial taxes on self NTN which it is unable to claim in the normal mode.
It is therefore, proposed that necessary arrangements may be made in this behalf so that the self NTN is not accepted by the official FBR web portal in such cases while filing of Sales Tax return and relevant annexure-A, Director of Intelligence and Investigation Inland Revenue (IR) Karachi added.
Comments
Comments are closed.