Tax lawyers and experts have pinpointed 14 major anomalies and ambiguities in the amended sales tax return causing serious problems for the business community in timely filing of returns. In a letter dated September 10, 2011 to Shahid Hussain Asad Member Inland Revenue Federal Board of Revenue (FBR), Pakistan Tax Bar Association has pointed out 14 serious anomalies which needs to be removed on top priority basis.
According to the KTBA, this letter, "objections/suggestions in monthly sales tax return" is with the reference to the new sales tax return. The association has acknowledged the clarification issued by FBR through 'FAQs' on sales tax at FBR-Website in which various points which have been recommended by the Bar were addressed. However, the bar has once again reviewed the amended sales tax return and detected following anomalies in the new sales tax return, which is causing difficulties for the taxpayer in proper disclosure:
1. Import Annexure - B of sales tax return:
: Date not being uploaded
: Value addition not calculated automatically
: Error in submitting date
: Save option does not exist
: Value addition is added twice
2. C/FD Annexure - A of sales tax return:
: How to fill Annexure - H
: Import Purchase amount for the month should come automatically
: Sales amount should also come automatically
3. Return Page main:
: Calculation wrong
: No instructions to fill the return/annexure
: Tutorial is old
4. Challans paid through CPR take about 72 hours from the date of filing sales tax return; it should be immediately appeared after providing CPR number in the return.
5. Return save option on 1st page not working properly.
6. In Export Annexure Information uploaded automatically shows different figures.
7. Bulk Invoices asking dates/number, which is impracticable.
8. Till June 30, 2011 it was law to claim input tax on Capital Goods as 1/12th, now from July 2011 tax payers are allowed to claim input tax in full but in return there is no place to claim the remaining input of previous year (Eg. is if a item on which Rs 1200 input is bought in April 2011 then as per law it will be claim Rs 100 per month and till June Rs 300 is being claimed and Rs 900 is still to be claimed for which there is no place in returned to claim remaining balance of Rs 900).
9. Each invoice need to be entered separately which is cumbersome on tax payer as the system of one entry for one customer with as many invoice was more easier and time saving for tax payer.
10. Negative figures in case of Sales Return or Credit Note is not being uploaded in the file.
11. Jurisdiction of Toll manufacturers needs to be clarified.
12. C/F in august not available.
13. Formulas at different columns are not in accordance with the law.
14. No column for PCT.
15. CNG column is not mentioned in quarterly return.
16. Zero rated is omitted as per SRO 529 dated 11/06/2008 in serial no.07.
17. In columns 22/23 calculation of section 8B is not in accordance with the Law.
18. Details of withholding in case of late payment is not fully covered.
19. Bill of entry in case of multiple items is not picking up.
20. No column of SED as Invoices can be claimed in succeeding six months as per the law.
21. C/F of June balance to SRB
22. Fixed value tax on steel re-rolling calculated of normal rate.
23. Import adjustment from SRB to FBR.
24. Following Codes are missing:
· Post Office
· International Mail Office
· KAFU
· D Type
· DP
· Others
A part from the above recommendation from the Bar, there are number of issues needs to be clarified and addressed. In view of this, the FBR should depute a team for practical demonstration for filing of new sales tax return, in the presence of ground realities and practical challenges facing by the taxpayer in transmitting the same via FBR e-portal, the PTBA added.
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