Towel Manufacturers' Association (TMA) has expressed resentments over the audit notices issued by the Regional Tax Office (RTO), Karachi to its members under section 25 of Sales Tax Act, 1990. In a letter dispatched to member sales tax of the Federal Board of Revenue (FBR), the TMA has asked the authority concerned to withdraw the said audit notices as the same would not yield fruits but harass the exporters.
The TMA said these audit notices would not make any revenue earning point rather create harassment among exporters, which would cause to decline foreign exchange earnings. Despite the fact that the TMA came under zero-rated regime and the input/output of its members was considered as nil or negligible, they file normal return over monthly sales and purchases besides passing through desk audit.
Moreover, the TMA has given the assurance to the authority concerned to facilitate the tax department, if any member was found guilty in any tax related matter besides offering to hold a meeting over the said issue for further clarification. Needless to mention, the RTO, Karachi has asked the towel manufacturers to produce all relevant records for the period from July 1, 2010 to June 30, 2011 to conduct audit under section 25 of Sales Tax Act 1990.