The Central Board of Revenue (CBR) has decided to process sales tax refund claims of the textile units through new software "STREAMS" without issuance of any new notification to clear the backlog. The CBR has conveyed to the All Pakistan Textile Mills Association (Aptma) and collectors of sales tax to process and subsequently sanction refund claims through "STREAMS". There is no need of issuing any notification for processing of refund claims through 'STREAMS', which is the new form of STRARR.
Official sources told Business Recorder on Monday that the All Pakistan Textile Mills Association (Aptma) has approached the Board saying that refund claims filed by its members were not being processed and sanctioned by the concerned collectorates. On the other hand, the regional tax offices have clarified that there is no provision in the computer package for release of 'Refund Payment Order' under STREAMS.
Moreover, no legal coverage was available for the release of claims, because the Board has not issued any notification to bring in force the new Sales Tax Refund Rules envisaged under Chapter-V of the Sales Tax Rules, 2004.
After examining the Aptma plea, the CBR has conveyed to the collectors and the association that the Board has withheld the operation of new Sales Tax Rules for the time being in order to meet operational requirements, and has not stopped processing and sanction of claims through the new software ie STREAMS.
Till the time new rules were put in place, all the claims have to be processed under the previous rules, officials maintained.
The only difference was that previously the software used for processing of claims was 'STARR', and now 'STREAMS', which has no nexus to the new refund rules. The STREAMS package also has provision of issuing/releasing the RPO, as confirmed by the Chief STARR.
Keeping this in view, there was no need to issue any notification for processing and sanctioning of refund claims through the new software 'STREAMS'. It may be pointed out that for the similar reason, no such notification was issued when the processing of claims through STARR were implemented.
The collectorates have been directed to sanction the claims processed through STREAMS in accordance with the existing refund rules and clear the backlog accumulated on that account immediately and report progress to the Board within a week's time positively.