The Federal Board of Revenue (FBR) has decided to compile an updated list of illegal input tax adjustments to be communicated to the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) on monthly basis. In this connection, the FBR has issued instructions to the Chief Commissioners of the LTUs and RTOs here on Thursday.
According to the FBR's instructions, the FBR is evolving a new policy on illegal sales tax input adjustments. The Chief Commissioner RTO, Faisalabad presented a study highlighting the discrepancies in the system. The issue was discussed in detail and a committee was formed to suggest improvement in the system and to plug the illegal Sales Tax Input adjustment, it was decided that a list of illegal input tax adjustments is to be generated and forwarded by FBR to field formations on monthly basis. The cases of inadmissible input tax to be prioritised on the basis of amount involved. The FBR has further directed the field formations that proper files may be maintained invariably in each case.
Secondly, the single point audit may be conducted in every case and an audit report may be generated. Thirdly, the audit cases should be entered in "TAMS", a tax management system, as per procedure. Fourthly, the recovery along with updated position may be reported to the Board on monthly basis by 5th of each month, FBR's instructions added.
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