The Federal Board of Revenue has agreed in principle to revisit the existing monthly 'stock statement' to obtain sufficient information about the ST-paid raw materials and inputs consumed in the manufacture of finished products.
Sources told Business Recorder here on Monday that the submission of Annex "H" of the new sales tax return form through e-filing of sales tax return has been discussed between the tax authorities and different chambers and associations during FBR's countrywide consultative process on sales tax and income tax returns.
According to sources, the stock statement of the new sales tax return is only required where sales tax refund is claimed, whereas there is no requirement for submission of monthly stock statement in cases where refund has not been claimed. Every manufacturing unit has to prepare stock statement for his its internal use and the same could be used for providing same information through Annex "H" of the new sales tax return form.
The FBR has agreed to re-visit the statement and requested the representatives of value added tax export associations to visit FBR Headquarters to discuss their viewpoint to simply the stock statement, but not at the cost of automated issuance of refunds. This means that the stock statement must give bare minimum information required to automate the process of refund issuance, electronically.
It was further elaborated by the tax officials that all the possible efforts will be made to ensure easy submission of stock statement by providing the facility of copying the previously submitted stock statement for bringing all the item description and 'opening balances'. It was explained to the business and trade that the stock statement is already provided at the time of refund claims.
The FBR is planning to make the sales tax return as refund claim application, which would be electronically processed, for expeditious refund issuance. Therefore the stock statement has also been made part of the return. It was further explained that the provision of 120 days for claiming of refunds is still provided in the return form for submitting the stock statement.
When contacted, tax experts pointed out that Annex 'H' of the sales tax return contains complex and detailed requirement of stock disclosure of each and every item, either zero rated or taxable. The form is quite time consuming as well as increase undue load of work on genuine exporters. It is therefore suggested that requirement of this form be linked with annual sales tax return rather than monthly returns.
The tax department was of the view that it is leading towards complete electronic refund system where sales tax return would be treated as refund claim and no separate data would then requires furnishing for seeking refunds. However, the department agreed with the argument that this statement should not be so complicated and in detail to cause problem in its filing, sources added.