Supply chain of five major export-oriented sectors is in severe panic over non-payment of reduced rate of 2 percent sales tax following immediate uploading of special returns at FBR web portal.
Sharing details, Arshad Shehzad a renowned Karachi-based tax expert told Business Recorder on Saturday that recently FBR has introduced amnesty scheme through notification 179(I)/2013 which allows taxpayers to discharge their past liability by paying 2 percent sales tax in terms of notification numbers, ie SRO283, SRO1058 and SRO1125 to avoid default surcharge and penalty by March 31, 2013.
In this connection, the FBR has uploaded special return of all such taxpayers where tax difference was worked out by the system based verification just before expiry of the time limit. Following to uploading of details, panic spreads all over since large number of taxpayers even failed to understand the situation and recourse.
The special return cannot be accessed by everyone on the FBR web-portal, but the relevant taxpayers of five leading export sectors will enter their user ID and passwords for accessing special sales tax return. Shehzad explained that the large number of non-payment entries pertains with mismatching of information due to data feeding errors only and apparently there is no mala fide intention or non-payment involves.
It is important to observe that electronic filing and invoice-wise detail of sales and purchase was made applicable in recent past by the FBR which makes it possible to reconcile input/output invoice on real time bases. The textile sector by and large remains zero-rated within supply chain and thus taxpayers in number of transactions mistakenly either failed to report such purchases or had reported the entries but put some wrong particulars hence in-spite of non applicability of sales tax payment system accounted for such entries as a case of non-payment.
Leading tax expert suggested that revision of sales tax return be allowed on all such cases enabling genuine taxpayers to rectify such mistakes. In the past such facility was provided by the FBR, he added. He further extended his observation that it is also correct that in number of cases transactions were shown against fictitious or fraudulent customers by some suppliers as well and such non-payment should required to be recovered as per law.
However, considering delayed uploading of special return, problem of general internet connectivity in country which slow down over all system and unexceptional load at FBR's web site, date for availing amnesty under notification requires to be extended with enabling options for revision of return so that maximum revenue collection be ensured without going into unnecessary litigation. Shehzad concluded.