Sales tax registration suspended on noncompliance

KARACHI: Regional Tax Office (RTO) Karachi has suspended the sales tax registration of about 100 taxpayers on non-compliance with a law of monthly returns filing, sources said on Tuesday.

The sources said the RTO Karachi had launched the crackdown against sales tax registered taxpayers for defaulting on the statutory requirement.

They said under the Sales Tax Act, 1990 every sales tax registered person is required to file monthly sales tax returns explaining supplies and purchases during the month. It is worth mentioning that in the past many persons obtained sales tax registration in order to issue flying invoices and avail benefit of refunds and input sales tax adjustment. Further, the registrations were also obtained on fake documents and factory premises. The sources said initially the RTO Karachi suspended the sales tax registration of 100 taxpayers barring them from making registered supplies and obtaining input tax adjustment. “During the period of suspension of registration, the invoices issued by such person shall not be entertained for the purpose of sales tax refund or input tax credit, and once such person is blacklisted, the refund or input tax credit claimed against the invoices issued by him, whether prior or after such blacklisting, shall be rejected through a self-speaking appealable order and after affording an opportunity of being heard of such person,” according to the Sales Tax Act, 1990.