The Federal Board of Revenue has asked field formations to take action against those involved in a Rs. 314.8 billion sales tax dummy companies fraud.
Sources said the Regional Tax Office-I Karachi in its communication with regard to lodging of FIR against KH & Sons and others on account of Rs. 314.8 billion sales tax fraud said the details of buyers/suppliers involved in the supply chain have already been shared with the concerned field formations with the request to take actions in accordance with law against the registered persons falling under their respective jurisdiction.
Moreover, KH & Sons and Mohsin Traders have been blacklisted in terms of section 21(2) of the Sales Tax Act. 1990 read with Rule 12 of the Sales Tax Rules, 2006.
Sources said that during the scrutiny of sales tax return/registration profiles of KH & Sons for the period Feb-Aug-2023, it was revealed that the said registered person has got sales tax registration dated 02-03-2023 and declared a huge purchase amounting to Rs. 1,748 billion involving sales tax amounting to Rs. 314.8 billion in the month of April 2023.
The fake/bogus input tax amounting to Rs. 314.8 billion was created by the buyer (KH & Sons) in connivance with the supplier (Mohsin Traders and Sales Promoters). Subsequently, KH & Sons declared supplies amounting to Rs. 1,732 billion involving sales tax of Rs 314.8 billion in the month of July 2023 to various buyers.
Sources said that FBR is trying its best to locate the main mastermind Owais Ismail as he has shifted his office to some other place.
