The Federal Board of Revenue (FBR) has issued a new procedure for disposal of requests of registered persons for condonation of time period under section 7 4 of the Sales Tax Act, 1990.
In this regard, the FBR issued a Sales Tax Circular No.1 of 2024 / IR Operations on Monday. This Circular has superseded Sales Tax Circular No.02 of 2020/IR Operations dated 21-09-2020.
For the purpose of disposal of requests of registered persons for condonation of time or period under section 7 4 of the Sales Tax Act, I 990, the Board has prescribed the procedure.
The registered person shall apply to the Commissioner Inland Revenue having jurisdiction for extension of time or period specifying the grounds for delay. In case, a request is directly received in the Board, the same shall be forwarded to the Commissioner Inland Revenue concerned for action as stated below. However, in cases where the Board is satisfied that sufficient information is available, the orders as deemed fit may be passed without referring the matter to the Commissioner Inland Revenue concerned.
The Commissioner Inland Revenue concerned, after considering the grounds mentioned and any other information called for by him, shall send his categorical recommendations to the Board on the specified format.
The Commissioner Inland Revenue concerned shall forward his recommendations to the Board within fifteen days of the receipt of the application where the application is received in RTO/LTO/CTO/MTO. In case the Commissioner Inland Revenue calls for further information, the said period shall be reckoned from the date of receipt of such information. After receipt of the recommendations from the Commissioner Inland Revenue, the Board shall examine the request and the recommendations and communicate approval or rejection of the request to the Commissioner lnland Revenue as well as to the applicant.
The above instructions shall, mutatis mutandis be applicable for condonation sought under section 43(2) of the Federal Excise Act, 2005, FBR added.