ISLAMABAD: Tax experts/advisers and chartered accountants have raised their concern over the single sales tax return form which is still complicated for the federal and provincial sales tax registered persons.

Experts shared their views during the seminar on income tax and sales tax returns organised by the Rawalpindi-Islamabad Tax Bar Association here on Tuesday.

Faraz Fazal Sheikh, a leading sales tax expert said that the taxpayers were expecting an error-free and simplified Single Sales Tax Return instead of six returns. Moreover, the facility of cross-border adjustments of input tax of other revenues and withholdings and adjustments of other revenues.

It was also promised to introduce a Single Payment Challan for all revenue authorities and boards with no extra registration process.

Practically, it is yet not a national single return, as forms on other provincial sites are still open. The single return form is still complicated (separate invoice tab / other related issues), adjustments are not available and extra registration is required.

Faraz suggested that there should not be a requirement of a separate registration. The provincial authorities should issue clarifications on it, so that taxpayers may proceed without hazard. The printed forms should be simplified and complete so that taxpayers can understand.

He further suggested that the legal issues should be removed and made as optional and operational like the old portal. The federal laws and respective rules should be amended to accommodate the filing of Single Sales Tax Return. Moreover, the provincial laws and respective laws should be amended to accommodate the filing of Single Sales Tax Return.

He raised the question that why Single Sales Tax portal is insisting provincial services provider to get registered with the FBR under Sales Tax Act, 1990. The payment collection method proposed for the single “sale tax return” the entire amount shall be collected by the federal government and apportioned disseminate to the provinces. Whether this adjustment will stand in the presence of the 18th amendment?

The sale invoices are not being updated on real-time basis in the return of buyers, this is causing hardship to the supplier and resulting in a delay in the filing of returns. The supplier has to constantly check if each invoice issued is claimed or not, and that too after the end of the month. The registered persons falling under special procedures, timely filing of Annexure-C of the sales tax return form is impracticable, Faraz stated.

Other speakers included Sharif Uddin Khilji, income tax expert, former FBR Member Habib Fakhurddin, tax expert Syed Tauqeer Bukhari, and leading income tax lawyer Hafiz Muhammad Idress.

Copyright Business Recorder, 2022

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