Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue’s (FBR) Chief (Sales Tax Refund) to ensure systematic enablement by Pakistan Revenue Automation Limited (PRAL) for allowing/uploading of input tax adjustment for the remaining amount of sales tax of taxpayers.
According to an order issued by the FTO on Wednesday, the Review Petition was filed by the Complainant(Petitioner), in terms of Section 14(8) of the Federal Tax Ombudsman Ordinance, 2000 (FTO Ordinance), read with Section 13(1) of the Federal Tax Ombudsmen Institutional Reforms Act, 2013, against the following Findings dated 11.06.2024:
“Arguments from both sides were heard, and available records were perused. It is observed that in an identical Complaint No.2953ILHRJST/2023 (MIs Al Majeed Ibrahim Steel Industries (Private) Limited where the taxpayer could not claim credit/refund.
In that case, the representative of PRAL guided the AR on how to claim the tax credit/refund in the Sales Tax Return. The AR informed that he adopted the procedure, as per PRAL’s guidelines, and most of the CPRs have been loaded in the Complainant’s monthly sales tax return.
In the instant case, the PRAL’s representative also provided the screenshots/guidelines which were sent to the Complainant for necessary action. The Complainant is advised to adopt the procedure as provided by the PRAL. However, the FBR/PRAL is also required to facilitate the Complainant to enable him to claim sales tax credit/refund on the basis of certificates issued by the various government Departments and submit a compliance report within 45 days of the receipt of this order”, it added.
The Petitioner filed a Review Petition with the prayer that this Forum’s order may be reviewed and necessary instructions/directions may be given to the FBR to allow PRAL to give the Petitioner credit for the balance amount as input tax adjustment.
The Deptt has already taken the requisite action and condoned the time limitation for input tax adjustments and further Chief (Sales Tax Refund) FBR, also assured to facilitate the accomplishment of input tax adjustment by the Petitioner In view supra, the Para-6 of earlier order dated 11.06.2024 is hereby replaced with the new recommendations, FTO order maintained.
Chief (Sales Tax Refund), FBR is directed to ensure systematic enablement by PRAL thus allowing/uploading of input tax adjustment for the remaining amount by the Complainant and report compliance within 10 days, FTO order added.
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