FTO monitoring LTO for timely completion of ongoing audit of MTL

ISLAMABAD: The Federal Tax Ombudsman (FTO) is monitoring the Large Tax Office (LTO), Lahore to ensure the timely completion of the ongoing audit of M/s Millat Tractors Ltd (MTL).

This has been stated by Nazim Saleem, FTO advisor (sales tax) during a press conference held at the FTO office here on Tuesday.

“We are monitoring the audit issue and will share the findings of the audit of the company by the LTO Lahore with the media after the finalisation of the audit report,” the FTO advisor said.

Majid Qureshi, advisor/registrar; Nazim Saleem, advisor (sales tax), and Dr Arslan Subuctageen, advisor (Customs) shared the performance of the FTO office during 2023 and also shared details of major cases during this period.

During the press conference, Saleem said that the gist of the issue is that MTL had charged five percent sales tax from the buyers on their tractors but failed to deliver tractors before June 30, 2022, in sheer violation of definitions of “time of supply” as stipulated in section 2(44) of the Sales Tax Act, 1990.

The FBR officials ignored and neglected all violations committed by the said company, the FTO adviser said.

Equally important is the fact that sales tax was abolished on the supply of tractors w.e.f. July 1, 2022. When the complainants approached MTL for refund, they refused to entertain their requests.

Consequently, these buyers filed complaints against MTL before the FTO, the FTO advisor (sales tax) added.

President’s order against the company said that the FBR has initiated post refund audit and sales tax audit of the said company, which will reach its logical conclusion, Saleem said.

Copyright Business Recorder, 2024