VATupdate

Share this post on

FBR Authorizes Input Tax Refunds Under Sales Tax Act to Enhance Compliance

  • FBR authorizes refunds of input tax under Section 10 of the Sales Tax Act 1990
  • Relief provided for registered persons with excess input tax over output tax during a tax period
  • Refund process aims to ensure smoother tax compliance for businesses
  • Refunds must be processed within forty-five days of claim submission
  • Conditions for refunds are detailed in official Gazette notifications
  • Excess input tax for non-zero-rated supplies can be carried forward to the next tax period
  • FBR may prescribe fixed rates and methods for input tax refunds related to exports
  • Outstanding tax liabilities must be settled before input tax refunds are issued
  • FBR outlines strict procedures to investigate fraudulent input tax claims
  • Inquiry, audit, or investigation of suspicious claims must be completed within sixty to one hundred and twenty days
  • Extensions for complex cases can be up to nine months with written justification
  • Measures aim to ensure transparency and efficiency in the input tax refund process

Source: pkrevenue.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

Sponsors:

Advertisements: