The Federal Board of Revenue (FBR) has allowed the taxpayers to submit missing documents for processing their pending refund claims pertaining to 'excess input tax' up to February 29, 2008.
In this connection, the board issued instructions to the collectors of sales tax on Wednesday for disposal of cases of excess input tax (non-zero rated supplies) for the period prior to July 2007. According to the board's directive, the procedure for issuance of adjustment advices has been discontinued from July 1, 2007 by rescinding notifications of SRO 666(I)/2005 and SRO 813(I)/2005.
Questions had been raised regarding excess input tax (not relating to zero-rated supplies) falling in the following three categories of taxpayers: Firstly, excess input tax was claimed as refund in the return for June 2007 but adjustment notes could not be filed by registered persons for the reason that the procedure was withdrawn.
Secondly, unadjusted balance of adjustment advices against which only part adjustment could be made because of resending of relevant SROs and change in the return format.