The Finance Bill (2013-14) would introduce a new sales tax procedure for the "rectification of mistakes" in the tax records by the Commissioner, Commissioner (Appeals) or Appellate Tribunals in Budget (2013-14). Sources told Business Recorder here on Tuesday that the Finance Bill will amend the Sales Tax Act to replace existing section 57 (correction of clerical errors, etc) with the new section in the said Act.
The existing section 57 talks about the clerical or arithmetical errors in any assessment, adjudication, order or decision may, at any time, be corrected by the officer of Sales Tax who made the assessment or adjudication or passed such order or decision or his successor in office. The said procedure has been proposed to be rescinded and a new procedure to be introduced.
The Finance Bill to be issued on Wednesday (today) to include: "57. Rectification of mistake-(1) The Commissioner, the Commissioner (Appeals) or the Appellate Tribunal may, by an order in writing, amend any order passed by him to rectify any mistake apparent from the record on his or its own motion or any mistake brought to his or its notice by a taxpayer or, in the case of the Commissioner (Appeals) or the Appellate Tribunal, the Commissioner.
(1A) The Commissioner may by an order in writing, amend any order passed under the repealed Ordinance by the Deputy Commissioner, or an Income Tax Panel, as defined in section 2 of the repealed Ordinance to rectify any mistake apparent from the record on his own motion or any mistake brought to his notice by a taxpayer and the provisions of sub-section (2), sub-section (3) and sub-section (4) shall apply in like manner as these apply to an order under sub-section (1).
(2) No order under sub-section (1) which has the effect of increasing an assessment, reducing a refund or otherwise applying adversely to the taxpayer shall be made unless the taxpayer has been given a reasonable opportunity of being heard.
(3) Where a mistake apparent on the record is brought to the notice of the Commissioner or Commissioner (Appeals), as the case may be, and no order has been made under sub-section (1) before the expiration of the financial year next following the date on which the mistake was brought to their notice, the mistake shall be treated as rectified and all the provisions of this Ordinance shall have taken effect accordingly.
(4) No order under sub-section (1) may be made after five years from the date of the order sought to be rectified, the Finance Bill added.