On the basis of credible information of alleged sales tax evasion by M/s Ahsan Associates, Civic Center, Gatwala, Faisalabad, and M/s The Perfect Water Technologies, Samundari Road, Faisalabad, the Directorate of Intelligence & Investigation (IR) Faisalabad conducted action under Section 38 of the Sales Tax Act, 1990, said the FBR's agency.
These businesses have been involved in manufacturing and making of taxable supplies of a wide spectrum of RO plants for domestic and industrial use without getting registration under the Sales Tax Act, 1990 despite the fact that both these businesses are liable to be registered for the purpose of sales tax. Making taxable supplies without registration is a criminal offence under section 2(37) of the Sales Tax Act, 1990 and persons committing such an offence are liable to prosecution under section 37A of the Sales Tax Act, 1990.
The authorized team completed raids under the supervision of Deputy Director Imran Zafar and resumed substantive records, including sales/bill books, computers, laptops, sales ledgers, purchase ledgers, cash books, gate passes, inventory record, and cheque books, etc.
The record resumed is under scrutiny. Apparently, these are cases of massive sales tax evasion and may result in detection of considerable income tax evasion as well.
The FBR apprised this correspondent that this action is in line with the vision of government of Pakistan and instructions from FBR for zero-tolerance against unregistered units which are causing huge loss to the national exchequer through tax fraud and massive sales tax evasion. The Directorate of I&I is also committed to continue action in future.