ISLAMABAD (April 21 2004): To facilitate the traders/business community, the Central Board of Revenue (CBR) has given condonation on the delay period (beyond the prescribed limit of 120 days) in transfer of payment through banking channel under section 73 of the Sales Tax Act, 1990.
The CBR has notified the decision through Sales Tax General Order (STGO) 1 of 2004 issued here on Tuesday.
As per announcement, delay of 60 days would automatically stand condoned under the 'STGO' as the taxpayers would not be required to come to the Board for availing condonation under section 74 of the Sales Tax Act. In case delay is beyond 60 days, the concerned collector of sales tax is empowered to issue condonation.
The CBR had received bulk of applications seeking condonation under section 74 of the Sales Tax Act, 1990, for the delay in transfer of payment through banking channels beyond the prescribed time limit of 120 days as required under section 73 of the Act.
To facilitate the taxpayers, the CBR has condoned the delay in payment in terms of section 73 beyond the prescribed period of 120 days using powers under section 74 of the Sales Tax Act.
The taxpayer has to fulfil the following conditions to avail condonation:
The payment has been verifiably transferred through banking channels from the business account of the buyer to the business account of the seller as specified in section 73 of the Sales Tax Act, 1990.
The invoice relating to the transaction contains the full and correct name, address and registration number of both the supplier and the buyer besides other particulars specified in section 23 of the Act.
The amount of tax involved has been paid.
The transaction does not involve any closed, de-registered or blacklisted/suspended person.
No case of tax fraud has been made out against the buyer or the seller and in case the delay is more than 60 days (beyond the prescribed period of 120 days specified in section 73).
Under the Order, all cases of delay of up to 60 days stand condoned automatically, provided the conditions are fulfilled, and the taxpayers do not have to approach any sales tax official for prior verification/certification.
Such verification will be done at the time of audit. However, in case of delay beyond 60 days (which should be rare in case of genuine business transactions), the condonation will operate only when the Collector, after examining the case, is satisfied that the delay was genuine and due to circumstances beyond the control of the applicant.
Following is the text of the sales tax general order 1 of 2004 issued here on Tuesday:
SUBJECT: CONDONATION OF TIME LIMIT UNDER SECTION 74 OF THE SALES TAX ACT, 1990.
A large number of applications are being received in the Board for condonation, under section 74 of the Sales Tax Act, 1990, of the delay in transfer of payment through banking channels beyond the prescribed time limit of 120 days as required under section 73 of the Act. Processing of these applications has led to unnecessary involvement of the Board in operational matters besides creating hardship for taxpayers.
2. In order to mitigate the hardship of taxpayers, the Board, in exercise of powers conferred by section 74 of the Sales Tax Act, 1990, is pleased to condone the delay in payment in terms of section 73 beyond the prescribed period of 120 days, subject to the following conditions:
(i) the payment has been verifiably transferred through banking channels from the business account of the buyer to the business account of the seller as specified in section 73 of the Sales Tax Act, 1990;
(ii) the invoice relating to the transaction contains the full and correct name, address and registration number of both the supplier and the buyer besides other particulars specified in section 23 of the Act;
(iii) the amount of tax involved has been paid;
(iv) the transaction does not involve any closed, de-registered or blacklisted/suspended registration person;
(v) no case of tax fraud has been made out against the buyer or the seller; and
(vi) in case the delay is more than 60 days (beyond the prescribed period of 120 days specified in section 73), the Collector of Sales Tax concerned is satisfied that the delay is genuine and due to circumstances beyond the control of the applicant.
3. By means of this order, all cases of delay of up to 60 days stand condoned automatically, provided the conditions at (i) to (v) above are fulfilled, and the taxpayers do not have to approach any sales tax official for prior verification/certification. Such verification will be done at the time of audit. However, in case of delay beyond 60 days (which should be rare in case of genuine business transactions), the condonation will operate only when the Collector, after examining the case, is satisfied that the delay was genuine and due to circumstances beyond the control of the applicant.
