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FBR directs RTO Hyderabad to recover Rs1.709m from M/s Mast Qalander Cotton Ginners

FBR directs RTO Hyderabad to recover Rs1.709m from M/s Mast Qalander Cotton Ginners

ISLAMABAD: Federal Board of Revenue (FBR) directed Regional Tax Office Hyderabad to recover government dues amounting to Rs1.709 million from M/s Mast Qalander Cotton Ginners (National Tax Number 4012115-1).

Sources told Customs Today, M/s Mast Qalander Cotton Ginners made taxable supply of Rs10.679 million to the M/s Al-Muqeet Textile (Pvt) Ltd NTN 1858071-8 (Aative) at zero rate, and it was evident that supplier was suspended and he was not entitled to charge zero rate of sales tax rather tax at sixteen percent was payable.

Short levied tax amount comes to Rs1.709 million which is recoverable along with default surcharge and penalty. Federal Board of Revenue directed that action under Section 21 of sales tax act 1990 read with Sales Tax Rules 2006 be taken against the buyer M/s Al-Muqeet Textiles and fix the responsibility against officials at fault.

It is also important to mention here that according to section 21 of Sales Tax Act 1990, read with Sales Tax Rules, 2006 and SRO 1125(1) 2011 dated 31 December 2011, no sales tax adjustment, reduced rate or zero rating of sales tax is admissible to a registered person who is non-active, suspended or blacklisted whereas legal action against suppliers and buyers is also required to be taken as per prescribed procedure.