ISLAMABAD: Federal Board of Revenue (FBR) directed the Large Taxpayer Unit (L:TU) Karachi to recover the sales tax amounting to Rs669.486 million from four textile mills including M/s Al Karam Textile NTN (069806-3), M/s Gul Ahmed Textile NTN (0698283-2), M/s Tata Textile Mills NTN (0698400-2) and M/s Dewan Textile NTN (0698400-2).
According to the details, it was revealed in the report of Auditor General Pakistan that four taxpayers registered with Large Taxpayers Unit Karachi, did not pay sales tax, for the year 2013-14, and 2015-16 as assessed by the departmental authorities on account of under valuation of supplies, claim of input tax on goods not relevant to taxable supply, and non-compliance of condition of section 73 of the Sales Tax Act 1990. Evaded and short paid amount of government revenue was estimated at Rs669.486 million.
Auditor General observed that recovery was not made after lapse of one to five years. Auditor General directed the Federal Board of Revenue to finalize the legal proceedings and submit updated status of the cases.
On the direction of Auditor General of Pakistan, Federal Board of Revenue has ordered the LTU Karachi to initiate the expeditious legal and recovery proceedings of government revenue and also fix the responsibility against the officials at fault.
It is important to mention here that according to Section 7, 8 and 73 of the Sales Tax Act 1990, read with SRO 1125 (1) 2011 dated 31 December 2011, for the purpose of adjustment refund of input tax, the registered person is required to comply with certain conditions like use of purchased goods for taxable supply, and transfer of payment of purchase by the buyer in bank account of the supplier through banking channel.