The inadmissible input tax adjustments, supplies made by blacklisted units and other wrong adjustments, have caused huge revenue loss of Rs 50.5 billion to the national exchequer in 2010-11 for which a short-term recovery plan has been launched by the tax authorities.
Sources told Business Recorder here on Tuesday that the Federal Board of Revenue (FBR) has launched recovery drive, involving an amount of Rs 50.5 billion, against three different categories of sales tax registered persons, including inadmissible input tax adjustments and supplies made by blacklisted units.
They said that the FBR has identified Rs 50.5 billion as inadmissible amount of sales tax under the IT system in different categories of taxpayers. Break-up showed that the inadmissible input tax adjustments of sales tax comes to the tune of Rs 24 billion; supplies made by blacklisted units caused inadmissible benefit of Rs 16.5 billion and illegal adjustment by electric supply companies from steel sector through electricity bill is around Rs 10 billion.
The cross matching of electronic system has identified this inadmissible refund obtained by registered units. In other cases, the system has declared these units as blacklisted and therefore input tax credit would not be allowed to them. In case the FBR manages to recover the detected amount, it would be included in the overall revenue collection of the FBR for 2010-11.
The FBR has set deadline of April 30, 2011 for recovery of the inadmissible amounts identified by the IT system. The recovery drive is part of the overall plan of the FBR for short-time enforcement plan to generate maximum revenue in the remaining four months of 2010-11. The Board has directed the field formations that the recovery of inadmissible input tax adjustment of sales tax and supplies made by blacklisted companies as identified by the IT system by single-point audit is to be ensured by April 30, 2011.
Comments
Comments are closed.