LAHORE: The Federal Tax Ombudsman (FTO) has ordered the Regional Tax Office-II (RTO-II) to ensure the payment of sales tax refund to the Agro Tractors within four weeks.
According to the details, FTO Advisor Umer Farooq heard the case of Agro Tractors in which the counsel for the appellant argued that the RTO had failed to release the sales tax refund of the last two year.
He said that the RTO collected excessive tax from Agro Tractors during the last two years. The approached the commissioner concerned many time for issuance of refunds but the RTO officials did not pay the refunds after the passage of reasonable time.
At the end, the company decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the RTO to clear the refund claims.
The counsel further said that the RTO should refund the excess collection in wake of taxes by the end of financial year but the situation is quite otherwise. Delay in issuance of refunds put burden on the taxpayers, he said, adding that the RTO should make audit of the cases and release the extra amount collected by it from the taxpayers.
On the other hand, counsel for RTO argued that the appellant Agro Tractors has not submitted all record in the office on which basis it is claiming for refunds. If appellant provides accurate record, the RTO will issue the refunds after proper assessment.
After hearing the arguments from both sides, Adviser Umer Farooq decided the case of Agro Tractors directing the RTO to ensure payment of refund to the party within four weeks.
Source told Customs Today that the RTO has started audit and proper work on the sales tax refunds claimed by the Agro Tractors on the directions of the FTO.