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Software developed for sales tax non-filers' assessment

ISLAMABAD (February 05 2004): The Central Board of Revenue (CBR) has developed a software to carry out automatic assessment of non-filers of sales tax for enhancing GST collection in the remaining months of current fiscal year 2003-04.

Sources told Business Recorder here on Wednesday that CBR has issued Sales Tax General Order 5/2003 for assessment of non-filers, by determining their minimum tax liability. In order to implement the system at the level of Collectorates of Sales Tax, the CBR has developed software for presumptive assessment of sales tax non-filers.

The implementation of the presumptive assessment system through a computer programme would not only be instrumental in curtailing the direct interaction between tax officials and registered units but would also promptly identify non-filers.

The CBR has issued a directive to all collectorates of sales tax to implement the new system by February 15, 2004.

Through the software, seven important tasks including identification of non-filers, automatic assessment of non-filers in accordance with the procedure laid down in STGO 5/2003; facilitation to tax officials in carrying out manual assessment; printing of assessment orders; recording the dispatched assessment orders; receipt of undelivered assessment orders; detailed reports of undelivered assessment orders; recovery reports in response to assessment orders and development of a comprehensive database on non-filers would be carried out.

Sources added that the newly developed software would also help the tax authorities to keep an effective administrative check on non-filers.

It may be recalled that the minimum tax liability of the registered person would not be less than the highest amount of tax paid by the registered person in any of the previous 12 months.

In case tax paid in the previous 12 months is Nil, the minimum tax liability shall be calculated on the basis of monthly average of the sales declared by the registered person for the last assessment year.

In case minimum tax liability cannot be determined in the manner given above, it shall be determined taking into account three or more of the following factors including location of business; type of business (ie retail etc); item produced/supplied or service provided; no. of persons employed, capital invested in the business; amount of utility bills ie phones, electricity, gas and water and production capacity of machinery installed.

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