The Central Board of Revenue (CBR) has given exemption of 'additional tax' and penalty to distributor of a multinational company for August-October 2003.
According to SRO.241(I)/2004 issued here on Monday, M. Ilyas Khan, distributor, Lever Brothers (Pakistan) Limited, Kot Ghulam Muhammad, District Mirpur Khas, Sindh, adjusted input tax against output tax including 'further tax', in violation of sub-section (1) of section 7 of the Sales Tax Act, 1990, during the tax period from August 1, 2003 to October 31, 2003.
This resulted in levy of 'additional tax' amounting to Rs 5,807 and penalty of Rs 15,000.
After going through the record, the CBR observed that total amount of 'further tax' not deposited due to erroneous adjustment had been deposited by the registered person and the omission was due to lack of knowledge and inadvertence.
The CBR in exercise of the powers conferred by section 34A of the Sales Tax Act, 1990 exempted 'additional tax'/penalty pointed out by the audit staff against the registered person, the notification added.
Meanwhile, on the recommendations of 'disputes resolution committee', the Central Board of Revenue (CBR) has waived 'additional tax' levied on F W Distributors, Rawalpindi, from July 2000 to May 2003.
The CBR issued SRO 242(I)/2004 here on Monday to notify 'additional tax' exemption.
According to the notification, the sales tax audit of the unit for July 2000-May 2003 detected recoverable sales tax of Rs 4.258 million, along with 'additional tax'.
The unit requested the resolution of the issue through 'dispute resolution committee' and the case was referred to the committee under section 47A of the Sales Tax Act, 1990. It recommended exemption of 'additional tax' for the said period.
The CBR in exercise of the powers conferred by section 34A of the Sales Tax Act, 1990 exempted, as a special case, the total amount of 'additional tax' levied vide order No.4/2004 of March 27, 2004.