The Federal Board of Revenue (FBR) has made it mandatory for the manufacturers-cum-exporters to claim the federal excise duty (FED) refund under the Expeditious Refund System (ERS). The FBR issued Federal Excise General Order 1 of 2011 issued here on Tuesday.
According to the order, the Board has directed that provisions of Sales Tax General Order No 19 of 2010 shall apply mutatis mutandis to cases of refund of duties of excise under Federal Excise Act, 2005. Therefore, the refund claimants of the FED have also to follow the procedure of ERS for processing and sanctioning of the refunds. The registered person eligible for claiming expeditious refund will file refund application on RCPS format by logging in at FBR web portal.
He will also complete declaration electronically. The expeditious refund claimants qualify for Expeditious Payment of Refund if they fulfil certain conditions. The applicant is manufacturer-cum-exporter registered in RTOs; registered person is active taxpayer. The amount of refund claim has also been claimed in the corresponding Sales Tax/F E Return.
The registered person will be paid amount cleared by RMS. If an electronic refund claimant (ERC) qualifies for expeditious payment of refund then the registered person shall be intimated by e-mail. If an ERC does not qualify for expeditious payment of refund as stated in sub-para (2), then the registered person shall be intimated by e-Mail.
If an ERC qualifies for expeditious payment of refund, then the respective tax office shall be advised by e-Mail as prescribed in Annex-D and a system-approved Refund Payment Order (RPO) shall be placed in the Inbox of the treasury officer of the RTO for issuance of cheque to the registered person. Simultaneously, the refund claim shall be forwarded electronically to the concerned audit division of tax office for post-refund audit.