Extension in filing of ST return for July, August: experts pinpoint major ambiguity in circular

Tax experts have pinpointed a major ambiguity in the circular regarding extension in filing of sales tax return for July and August 2011, as last date for payment of sales tax for these periods is unclear, creating confusion among the business and trade.
Tax experts told Business Recorder here on Wednesday that after issuance of circular for extension in filing of sales tax return for July and August 2011, an ambiguity for sales tax payment of August 2011 has arisen.
The tax experts have pointed out that persistent reporting of technical error in sales tax return filing system, the FBR was forced to issue extension in filing of sales tax return till 20th September 2011 recently by a circular/instructions to the field formations. According to the FBR instructions, The FBR has extended date for filing of Sales Tax/Federal Excise returns, upto September 20, 2011, for the tax periods July and August 2011, for all registered persons.
Interestingly, since the circular/instructions were issued for both July 2011 and August 2011, where last date for payment of July 2011 has already been expired and extension is only requires for filing of sales tax return whereas in case of August 2011 since the last date of payment is yet not expired hence it is not clear that whether the extension pertains both for payment and e-filing of sales tax return or its only restricted with e-filing and last date for payment would stands at September 15, 2011. This needs clarification of the Board whether the extension has also been granted in payment of sales tax for both the tax periods of July and August 2011.
The sources informed that upon telephonic contact, the persons at e-support are found issuing advice for last date of payment as 15th September 2011, however they failed to convince that how could people can made their payment if their accumulated carry forward amount of previous tax period ie July 2011 has not yet finalised since the return for July has not yet filed and date is officially extended.
The tax experts were also of the view that since the date for return filing is extended and according to the legal interpretation and in absence of any specific instruction, the return filing date is also the date for payment of due for a tax period. Hence, legally last date of filing of sales tax payment appeared to be extended till 20th September 2011. However, they urged that the FBR should issue proper instructions/clarification to avoid such confusion, they added.