The Central Board of Revenue (CBR) has updated the list of blacklisted units up to November 24, 2004 on the recommendations of collectors of sales tax. The names of over 2000 blacklisted units were issued here on Thursday, amending the previous list. The first list of suspected companies was circulated in July 2004 and now it is being regularly amended to inform the business community about the blacklisted units. Sales Tax Computer Wing has issued the names and sales tax registration numbers of suspected persons.
The list contains suspected units of Karachi, Hyderabad, Faisalabad, Lahore, Rawalpindi, Peshawar, Multan and Gujranwala. However, there is no blacklisted unit in Hub and Large Taxpayer unit (LTU), Karachi.
The Official sources told Business Recorder that the collectors of sales tax exclude or include names in the list of suspected units after necessary investigative audit/verification of data. In certain cases, the units have approached the tax authorities for exclusion of their names and submitted the necessary documents supporting their claims. The department conducts necessary verification for exclusion or inclusion of names.
The sources said that many units have obtained sales tax registration from the department and now these units are not traceable on the addresses given by them.
The list has been issued so that the businessmen should avoid deals with these units, as their invoices could not be used for claiming sales tax refund. The move would also act as an effective tool to check the phenomenon of fake/flying invoices.
Under the law, where the case is not established against a suspected person, the collector will issue an order revoking the blacklisting or suspension of registration/enrolment, endorsing copies to the person concerned, all other Sales Tax Collectorates, the Sales Tax Wing computer system and the STARR system for deletion from their lists.
The collectorates should circulate copies of all such orders to their concerned staff for information.
The CBR has asked the collectors of sales tax to delete the names of the companies from the list of blacklisted/suspected units within 10 days of the completion of audit/inquiry.
The audit should give clearance that the unit is no more suspected. The audit must be completed within 90 days and persons who are cleared should be removed from the list within 10 days.