FBR Suspends Sales Tax Registration of a Popular Internet Service Provider

The Federal Board of Revenue (FBR) has suspended the sales tax registration of a prominent internet service provider, Gemnet Enterprise Solutions, after the company refused to furnish its record for audit.

According to a media report, the Corporate Regional Tax Office (CRTO) had selected the company to conduct a tax audit of its records for the period between July 2015-June 2016.

However, the company did not furnish the required documents/records despite having plenty of opportunities for compliance.

The company had also received a notice, issued under section 25 of Sales Tax Act 1990, in this regard. Non-compliance of the notice is a violation of the said Act, which warrants blacklisting or suspension of the business entity.

FBR Suspends Sales Tax Registration
Credits: fbr.gov.pk

The issued notice mentioned that if the company fails to comply with the requisites, its sales tax registration will be suspended.

The notice also stated that the provision for suspension without a showcause notice is authenticated by the decision of Sindh High Court in the case of M/s. Sh. Diwan Mohammad Mushtaq vs. Central Board of Revenue (1969).


FBR Collected Rs 12.2 Billion in Taxes through ATMs, Online Banking Since March

Therefore, the sales tax registration of a leading internet provider service has been suspended and the name of the company has been removed from the Active units list.

Via: Pk Revenue

  • By virtue of legislative changes in the Constitution of Pakistan 18th Amendment in Constitution of Pakistan and promulgation of Sindh Services Act, 2011 The Sindh sales tax on Services Act, 2011 has repealed the Sindh Sales Tax ordinance 2000 and has empowered the Sindh Revenue Board for management, administration and collection of Sindh sales tax on Services. Since the Sindh Sales Tax Ordinance 2000 stand repealed as such the authority which was provided under the ordinance 2000 to FBR to collect taxes on some services is also no more available with FBR and now all taxes are legally required to be paid directly in the Head Account of the Sindh Sales Tax on Services Government of Sindh. We on July 2013 registered our self as Service Provider in Sindh Revenue Board which does not come within the ambit/ jurisdiction of FBR Islamabad.

    So Miss Ambreen Shabbir, you are requested to remove/delete this post immediately to avoid Legal charges on basis of defaming a well reputed Registered Pvt Ltd Company.

    • So, you mean ISPs are removing themselves from FBR sales tax as they have to pay the sales taxes to Provincial tax collection bodies (SRB in this case) after Amendment in Constitution? and Gemnet did the same, but this article used the same for false propaganda against Gemnet?

    • No its not, as Internet Sales tax is charged my Provincial Taxation Authority and in our case its SRB (SIndh Revenue Board) where we are Active Tax payer and we are Active Income Tax Payer in FBR which is also shown in given Picture, we have asked FBR to suspend our Sales Tax our self as we are only Service Provider which is covered for Sale Tax with SRB. this post is just made by our competitors only to Defame us.

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