Direct credit of refunds: FBR's arm to transfer details of approved RPOs to SBP

The Centralised Sales Tax Refund Office (CSTRO) of the Federal Board of Revenue (FBR) would electronically transfer details of approved Refund Payment Orders to the State Bank of Pakistan (SBP) for direct credit of sales tax refunds to the declared bank accounts of the claimants.

The FBR has issued SRO 1031(1)/2016 here on Friday to amend Sales Tax Rules, 2006 for implementation of the new procedure for direct credit of sales tax refunds to the claimant''s bank accounts. Under the rules, the CSTRO shall also prepare a statement of payment advice for all cheques issued on the day and the same shall be sent to SBP duly signed by the signatory and co-signatory. The CSTRO may electronically, transfer the details of approved Refund Payment Order to the SBP for direct credit to the declared bank account of the claimant and the intimation of such advice shall be given to the claimant, it added.

Finance Minister Ishaq Dar had announced that pending refund up till June 2016 would be transferred online to exporters. The SBP would transfer the amount to the exporters'' accounts on behalf of the FBR. The government has introduced a new system for payment of refunds and from now onward refund payment would be made through this system. We have also deployed a focal person in the FBR and if any businessman does not get refund payment in next seven days, he must contact the focal person, he added.

Following is the text of the SRO issued here on Friday: SRO 1031(1)/2016.- In exercise of the powers conferred by section 4, sub-section (2A) of section 6 and section 40 of the Federal Excise Act, 2005, section 219 of the Customs Act, 1969 (IV of 1969), section 50 of the Sales Tax Act, 1990, read with proviso to clause (i) of sub-section (2) of section 7, clause (I) of sub-section (1) of section 8, sub-section (2) of section 8, clause (ii) of sub-section (2) of section 8B, section 9, 10, 14, 21 and 28, clause (c) of Sub-section(1) of section 22, section 26, sub-section (6) of section 47A, sections 48, 50A, 52, 52A and 66 thereof the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in the Sales Tax Rules, 2006, namely:-

In the aforesaid Rules, (1) in rule 30,- a) for sub-rule (7), the following shall be substituted, namely,

"(7) The CSTRO shall also prepare a statement of payment advice for all cheques issued on the day and the same shall be sent to State Sank of Pakistan (SSP) duly signed by the signatory and co-signatory" ; and

(b) after sub-rule (7), substituted as aforesaid, the following new sub rule shall be added, namely:
"(8) In lieu of the procedure stated in sub-rules (6) and (7), the CSTRO may electronically, transfer the details of approved Refund Payment Order to the State Bank of Pakistan for direct credit to the declared bank account of the claimant and the intimation 0f such advice shall be given to the claimant.