Registered persons: Commissioner IR authorised to conduct GST audit

ISLAMABAD: The Commissioner, Inland Revenue has been authorized to conduct sales tax audit of any registered person. The FBR has explained sales tax audit through a circular issued on Monday.

According to the FBR, in order to make the audit selection and procedure more effective, section 25 has been revamped. Under the amended section, the Commissioner on the basis of reasons to be recorded in writing, may direct the Officer of Inland Revenue, not below the rank of Assistant Commissioner to conduct audit of sales tax affairs of any registered person.

The Commissioner shall communicate the reasons of selection in audit through a notice to the registered person based upon the scrutiny of available record including sales tax and FED record, Income Tax returns, the withholding statements, financial statements or third-party information. These reasons shall not include mere verification of input tax, output tax, refund claims and compliance of legal provisions without identifying the risk factors.

The powers of the Commissioner to direct conduct of audit are independent of powers of the Board u/s 72B of the Sales Tax Act,1990. The officer concerned shall conduct audit of the sales tax affairs based on the record and evidence obtained and other documents maintained or furnished.

Copyright Business Recorder, 2024