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 Payment of Sales Tax Aug, 11
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olympia
Manager

Pakistan
619 Posts

Posted - Sep 14 2011 :  12:15:35 PM  Show Profile
CBR issued a circular for extension of sales tax return for Aug, 11. Is this circular also for the payment date extension or just for the filing of return? Your early response is appreciated.

Information Consultant
Senior

Pakistan
323 Posts

Posted - Sep 14 2011 :  1:05:06 PM  Show Profile  Visit Information Consultant's Homepage  Send Information Consultant an AOL message  Send Information Consultant an ICQ Message
As per the following text by fbr it seems that date of payment of sales tax for the month of aug 2011 is still 15 th sep 2011.

The Federal Board of Revenue has extended the dates for filing of Sales Tax and Federal Excise duty Returns for the periods July & August, 2011. In a letter issued here, the Inland Revenue Wing of the FBR has communicated to all Chief Commissioners of LTUs and RTOs that the date for filing of Sales Tax / Federal Excise Duty Returns has been extended upto 20th September, 2011. This extension of date is for the Tax periods July & August 2011, and is applicable to all registered persons. This extension has been given in exercise of the powers conferred under section 74 of the Sales Tax Act 1990 and section 43 of the Federal Excise Act 2005.
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jawad ahmad
Unregistered Trainee

18 Posts

Posted - Sep 14 2011 :  1:32:16 PM  Show Profile
I JUST MAKE CONFIRM FROM FBR HELP LINE, ACCORDING TO THEM PAYMENT DATE OF SALES TAX MONTH AUGUST 2011 HAS ALSO EXTENDED UP TO 20THE SEPTEMBER.
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Information Consultant
Senior

Pakistan
323 Posts

Posted - Sep 14 2011 :  2:25:10 PM  Show Profile  Visit Information Consultant's Homepage  Send Information Consultant an AOL message  Send Information Consultant an ICQ Message
jawad r u sure ? it is not mentioned in circular.
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olympia
Manager

Pakistan
619 Posts

Posted - Sep 14 2011 :  5:05:17 PM  Show Profile
thnks info :) Jawad i just confirm from CBR they said only filing date is extended..... Payment date is 15th Sep, 11
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Information Consultant
Senior

Pakistan
323 Posts

Posted - Sep 15 2011 :  12:50:49 PM  Show Profile  Visit Information Consultant's Homepage  Send Information Consultant an AOL message  Send Information Consultant an ICQ Message
Please read the text of following link very interesting

http://www.brecorder.com/taxation/single/666/181:pakistan/1231692:extension-in-filing-of-st-return-for-july-august-experts-pinpoint-major-ambiguity-in-circular/?date=2011-09-15
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lahore766
Unregistered Trainee

Pakistan
11 Posts

Posted - Sep 15 2011 :  2:31:48 PM  Show Profile
Payment date for Aug-11 is not extended so far. The amount payable is generally known to all registered persons. So, the payment date should not be taken risk off. Paying the tax in due time may save from many problems, so I advise pay the s.tax amount in time i.e. on or before 15 Sept. and later you may e-file the return before 20th.
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student_of_law
Semi Senior

Pakistan
161 Posts

Posted - Sep 16 2011 :  3:00:55 PM  Show Profile
quote:
Originally posted by Information Consultant

Please read the text of following link very interesting
http://www.brecorder.com/taxation/single/666/181:pakistan/1231692:extension-in-filing-of-st-return-for-july-august-experts-pinpoint-major-ambiguity-in-circular/?date=2011-09-15



Thanks a lot for sharing valuable article.
I agree with the legal interpretation referred to in the said article according to which time of payment is time of filing of return.

No where in the Sales Tax Act, 1990, it is written that sales tax collected is to be paid by 15th of following month.

Section 6(2), says, "tax.... shall be paid... at the time of filing of return in respect of that period under Chapter V"

Above provision means that unless time of filing of return under Chapter V comes , there is no obligation of making payment of tax.

Chapter V starts with s.26. It says "Every registered person shall furnish not later than the due date a true and correct Return".

So according to s.26 return is to be submitted by due date. According ti s.6(2) read with s.26, it can be safely said that, tax is to be paid by due date.

Now what is due date. According to s.2(9), of Sales Tax Act, due date is 15th of the following month OR such other date as the Board may ... specify

Hence for July & August period, according to S.26 read with s.2(9) read with relevant notification of FBR, due date of submission of return is 20th September.

According to s.6(2), payment of tax is to be made by due date of filing return under s.26, i.e. 20th September.

Accordingly, I am of the view that the date of payment has also been extended.

Further, it is pertinent to note that there is proviso to s. 6(2). It says that FBR may specify that tax may be paid by any other time (by other time here means time other than that provided in 6(2) i.e. at the time of filing return).

As FBR has not provided any other manner, so s.6(2) will apply. Time of payment of tax is same as time of filing return. According to s.26 time of filing return is by due date and date is 20th September.

So in my opinion, time of filing return and payment of tax both are extended in accordance with law, to 20th September

What FBR helpline is saying is not important, as this question relates to interpretation of Act of parliament, and interpretation of FBR is not binding on taxpayer. Operation of s.6(2) cannot be stopped by mere statement of clerk of FBR even not by Chairman FBR. It can only be stopped [as provided in proviso to s.6(2)] by gazetted notification of FBR. In the absence of such notification s.6(2) will apply.

If someone has legal backing for different view, please share it with us so we may deduce the correct position.


Edited by - student_of_law on Sep 16 2011 3:59:31 PM
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olympia
Manager

Pakistan
619 Posts

Posted - Sep 17 2011 :  11:42:44 AM  Show Profile
quote:
Originally posted by Information Consultant

Please read the text of following link very interesting

http://www.brecorder.com/taxation/single/666/181:pakistan/1231692:extension-in-filing-of-st-return-for-july-august-experts-pinpoint-major-ambiguity-in-circular/?date=2011-09-15



Interesting article..... thnks info i just read it

Anyways date for payment is also extended but we already deposit the tax for Aug, 11 :(
Here's attached the link of circular for your concern http://n.fbr.gov.pk/Docs/20119151393713161ExtensionInDateOfPayement.pdf

Edited by - olympia on Sep 17 2011 11:44:42 AM
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jawad ahmad
Unregistered Trainee

18 Posts

Posted - Sep 18 2011 :  4:06:58 PM  Show Profile
http://www.cbr.gov.pk/ShowDocument.aspx?type=Doc&Actionid=2672
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amerrafique
Unregistered Trainee

Pakistan
20 Posts

Posted - Sep 21 2011 :  10:03:36 AM  Show Profile
Thank you student of law.
your post is really informative and valueable
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