The Federal Board of Revenue (FBR) would not stop processing of sales tax refund payments to the exporters under FASTER system merely on the basis that Annexure-F (carry forward summary) and Annexure-H (stock statement) of the sales tax return form do not match. The FBR has announced this facilitative measure through issuance of sales tax circular number 4 of 2019 issued here on Monday.

The FBR has also announced that the refund claimants are advised not to revise the returns on the ground that entries in Annexure-F do not match with those in Annexure-H.

Chairman Pakistan Bedwear Exporters Association (PBEA), Shabbir Ahmed has welcomed the FBR's decision and requested the FBR to create a dedicated head of account for refund claims. The chairman BPEA had repeatedly raised the issue with the FBR that exporters are confused over filing of Annexure-F (carry forward summary) and Annexure-H of the sales tax return form.

According to the FBR decision, in the wake of rescission of SRO 1125(I)/2011, the Federal Board of Revenue had committed with the exporters of the export-oriented sectors, i.e. textiles, leather, carpets, sports goods and surgical goods that refunds shall be paid to them within 72 hours of filing of refund claim. For this purpose, FASTER refund module has been developed, which shall process claims of exporters of five export-oriented sectors for the tax period July 2019 and onwards. The FBR has earlier clarified that submission of Annexure-H, which is a form in the monthly sales tax return, shall be treated as submission of refund claim. It is added that the number of refund claims received is not significant. The exporters are facing some difficulties in filing of their tax refund claims (Annexure-H) under FASTER. Many claimants have approached the Board with request that they may be allowed revision of their return on the ground that the entries made in Annexure-F do not match with those in Annexure-H. It is accordingly clarified that refund is processed on the basis of entries in Annexure-H, said the FBR. The entries in Annexure-F have no bearing on refund claim except that carry forward of value addition tax is excluded from refund amount. Accordingly, the claimants are advised not to revise the returns on the ground that entries in Annexure-F do not match with those in Annexure-H. They should submit Annexure-H, if not already submitted, so that their claims can be processed. Further, field formations are advised not to draw an adverse inference if the Annexure-F does not match with Annexure-H in returns already submitted, the FBR added.

Copyright Business Recorder, 2019