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SRB suspends sales tax registration of Chinese firm

Business

April 7, 2021

KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of a Chinese energy company for failing to produce purchase invoices, officials said on Tuesday.

In the notification issued to M/s China Electric Engineering Group TanJin Electric Power Construction Company Limited, the SRB said the scrutiny of the taxpayer revealed the company had failed to comply with certain regulatory requirement. “The company keeps the abnormal tax profile on account of made/declared huge purchases and failed to attach the purchase invoices with Sindh sales tax returns,” the SRB said.

It further stated the company had failed to comply with the earlier tax notices served on February 26, 2020 and March 16, 2020 issued on account of verification of input tax claims/adjusted in the Sindh sales tax returns from the tax period of April 2019 and onwards.

On the basis of violation of sales tax on services rules the SRB suspended the sales tax registration of the Chinese company and directed it to take remedial action by April 12, 2021.

The SRB advised the company officials to appear personally and verify the registration particulars including Memorandum of Article, CNICs, Passport, VISA, SECP registration certificate, FBR registration certificate, tenancy agreement / lease documents, last paid electricity bill and bank statement of the last 12 months.

The company was further advised to provide a complete reconciliation statement in terms of purchases declared in Sindh sales tax returns.

The SRB also warned the company that in case of non-satisfactory response or failure to take remedial measures on or before scheduled date, the case would further be proceeded for legal action, the officials said.