Speakers at a seminar on Thursday criticised the decision regarding e-filing of income tax returns as mandatory requirement for Association of Persons (AoPs) and registered sales-tax payers from ongoing fiscal year. They were speaking at a seminar on Finance Act, 2009 organised by Income Tax Bar Association (ITBA) held at RTO auditorium here.
They said the SRO 626(I)/2009 issued on July 7 would be effective from July 15, raising several issues for taxpayers, who already being confused because of numerous amendments made in the Finance Act, 2009. They said the decision, which was exclusively applicable for corporate taxpayers, has now been extended to AoP and registered sales-tax payers, putting excessive financial burden to them.
Speakers included Asif S. Kasbati, director, tax services, A.F Ferguson and Co, Ali Rahim, representative, Pakistan Tax Bar Association (PTBA) and Abid Shaban. They further said that Alternative Dispute Resolution Committee (ADRC), which was supposed to make recommendations within 180 days, has now been restricted to act within 90 days. Contrary to the proposal made in Finance Bill, 2009 to increase the time period of 60 days to 180 days for the committee to make recommendations to the Federal Board of Revenue (FBR), the Finance Act has reduced the limit to 90 days, they said.
They said the government had withdrawn the restriction from FBR to issue order against the receipt of the recommendations made by ADRC within 45 days in federal excise duty (FED).
They said the power, to appoint any officer to examine stocks, accounts, records and other documents of the registered person or to seek any information or explanation from the registered person under section 38 of the Sales Tax Act, has been withdrawn through the Finance Act. Now, the FBR has exclusive powers to appoint officer for the purpose, they added. They said the duty, on classified advertisements in newspapers, periodicals, hoarding boards, pole signs, signs boards and shop boards, has also been removed, which was proposed in the Finance Bill, 2009 to be levied at the rate of 16 percent.