KARACHI: Karachi Tax Bar Association (KTBA) has requested the Sindh Revenue Board (SRB) to reverse the change made on the SRB portal immediately to enable taxpayers to discharge their sales tax liability and file their Sindh Sales Tax Returns (SSTRs) timely.
According to the KTBA, the change has not only created unnecessary hindrances and hiccups in ensuring timely compliance but also has caused delays in e-filing returns. However, KTBA members have also identified certain impracticalities with reporting debit/credit notes after the change was implemented at the SRB web portal.
One of the issues is that registered service recipients with reduced rates do not claim input tax, which affects the service provider’s right to claim credit notes for the standard rate invoice.
Additionally, service recipients who are unregistered or claim input tax on the FBR portal cannot create debit notes against the respective sales tax invoice issued by the service provider, leading to issues in claiming credit notes.
Furthermore, there is no tab available at the SRB web portal for claim/ visibility of the respective debit notes, leading to reconciliation issues.
It is suggested that the change made on the SRB portal should be reversed immediately to enable taxpayers to discharge their sales tax liability and file their SSTRs timely.
It said that SRB might follow a similar process of declaring debit/ credit notes as currently in force by FBR, where reporting is allowed on a provisional basis. The same is reverted if corresponding debit/ credit notes are not endorsed by either person in their returns.
KTPA hoped that the Commissioner’s office will consider this request and provide a solution to avoid any deadlock. A meeting with a delegation from the KTBA should also be arranged to deliberate and resolve the issue in detail.
Copyright Business Recorder, 2023
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