- The Federal Board of Revenue (FBR) has announced the rates of default surcharge under the Sales Tax Act, 1990, for the tax year 2024.
- The default surcharge rates are outlined in Section 34 of the Sales Tax Act, 1990.
- If a registered person fails to pay the due tax on time, they will be liable to pay default surcharge in addition to the tax amount due.
- The default surcharge rate for late payment is twelve percent per annum of the amount of tax due.
- In case of default due to tax fraud, the default surcharge rate is two percent per month of the amount of tax evaded or refund fraudulently claimed.
- The period of default for inadmissible input tax credit or refund is calculated from the date of adjustment or receipt of such credit or refund.
- The period of default for non-payment of tax is calculated from the 16th day of the month following the due date of the tax period.
- The tax due for calculating default surcharge does not include the amount of penalty.
- The FBR aims to promote tax compliance and discourage tax evasion by establishing clear and fair default surcharge rates.
- Businesses and taxpayers should familiarize themselves with the updated Sales Tax Act, 1990, and ensure timely compliance to avoid default surcharge.
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.
