The Federal Board of Revenue (FBR) has removed a major flaw in the refund filing process for the commercial exporters by extending the time limit for filing of ‘stock statement’ of the sales tax return form from 120 days to 180 days.
The FBR has issued an SRO to amend the Sales Tax Rules 2006 here on Thursday for commercial exporters. The SRO says that if a claimant is registered as a commercial exporter and exporting the same state goods, the period of one hundred and eighty days shall be reckoned from the date of filing of return or the date of issuance of bank credit advice (BCA), whichever is later.
The claimant may submit his return without Annex-H and the same may be filed separately at any time but not later than one hundred and twenty days, or as the case may be not later than one hundred and eighty days, for commercial exporters of submission of the return without Annex-H. The date of submission of Annex-H shall be considered as the date of filing of refund claim, the notification stated.
The FBR has already established a help desk for resolving grievances of exporters for filing of Annex-H (stock statement) of the sales tax return for claiming refunds under the FASTER system.
Board had nominated 18 officials in Large Taxpayer Units (LTUs), Regional Tax Offices (RTOs) and Corporate RTOs as focal persons in the respective field formations for addressing day-to-day queries and issues relating to the Annex-H. The FBR had taken the decision keeping in view serious problems being faced business community in timely filing of Annex-H (stock statement) of sales tax returns.
In the past, the FBR had conveyed to exporters that the rejected claims under the FASTER system with the objection of an anomaly in Annex-H have been rolled back for necessary correction and shall be processed as and when filed, provided the filing is in sequence.
Tax experts told ProPakistan that the issue of the time limit has been raised by the different commercial exporters and their trade bodies. The refund payment to commercial exporters is subject to realization of bank credit advice. Usually, the commercial exporters are getting payment from their customers within 180 days and therefore BCA cannot be generated within 120 days.
The 120 time limit for filing of annex ‘H’ for commercial exporters was therefore irrational and resulting in unnecessary rejection of their refund payment through ‘FASTER’ refund payment system. This matter has been taken up by the representative of the trade in a recent meeting of the FBR officials at KCCI and FPCCI. The FBR after due deliberation has acceded the request and extended the time limit, experts added.
