ISLAMABAD: The Federal Board of Revenue (FBR) has convinced audit department on its stance on several objections involving Rs 2986.86 million of Inland Revenue. Similarly, FBR has also got recovery of pending receivables from different departments worth Rs 3619.19 million from the audit department.
A official source at FBR, Monday, disclosed to Customs Today that audit department had raised objections in the form of seven paras which involved Rs2986.86 million of the FBR’s Inland Revenue department.
These objections were related to short realization of sales tax, non- enforcement of sales tax returns, inadmissible payment of sales tax refund of input sales tax related to provincial receipts, in correct exemptions to power generation companies, short realization of withholding tax on technical services, non-levy of alternative corporate tax, irregular payment made to PRAL on behalf of FBR,
But, the source said that FBR had convinced the audit department that five taxpayers registered with RTO Faisalabad did not file sales tax returns for the tax period June 2016, despite the lapse of extended period up to July 21, 2016. The lapse resulted in non-enforcement of sales tax returns having potential of sales tax Rs 142.26 million. However, the said amount was recovered afterwards and shown in the documents.
In another case, the source said that FBR categorically pointed out that Large Taxpayers Unit Lahore sanctioned sales tax refund on the basis of provincial payment receipt. It involved an amount of Rs 157.31 million. These payments were made as per SRO 212(1) 2014 which stated that provincial input tax adjustment was allowed from July 2013.
The source told that audit had now taken back its objections on the said audit paras and they would be referred to relevant authority for settlement. This achievement marks the higher professionalism on the part of FBR in financial management and revenue collection.