Steel units: Instructions issued for correct tax filing

ISLAMABAD: The Federal Board of Revenue (FBR) has directed the steel melters/re-rollers and composite units to approach the Chief Commissioners Inland Revenue (CCIRs) to get online approval of electricity consumed units, enabling them to calculate correct sales tax liability for filing of sales tax returns.

According to the FBR’s instructions issued to the field formations on Wednesday, Annex-K of the Sales Tax Return is mandatory to file for steel melters/re-rollers and composite units to calculate the correct sales tax liability in terms of the Thirteenth Schedule of the Sales Tax Act, 1990.

Annex-K is fully automated and automatically fed the electricity units consumed once the DISCOs file their Annex-C of the return for the period. However, it has been observed that taxpayers are facing hardships in cases where DISCOs either have not declared supplies to the taxpayers or filed late returns.

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In order to facilitate the taxpayers of the steel sector (Melters/Re-Rollers), an interface has been developed and provided to the concerned CCIRs to allow declaration of electricity units after due verification of electricity bill(s) of the month.

The taxpayer now is required to file an application online through the IRIS automated system to the concerned CCIRs, along with necessary details, within the statutory period to allow such adjustments. The CCIR concerned, after due verification of relevant record/documents, shall allow through online approval of electricity consumed units, and the said consumed units shall automatically be fetched to Annex-K, enabling taxpayers to calculate the correct sales tax liability and to file the sales tax return accordingly.

Copyright Business Recorder, 2026