Law being devised to check bogus invoices

ISLAMABAD (November 12 2003): The Central Board of Revenue (CBR) is devising a new law to deal with over 1000 blacklisted suspected units allegedly involved in the business of flying/fake invoices.

Sources told Business Recorder here on Tuesday that the new law would exclusively deal with the units blacklisted by the sales tax department. In this connection, the CBR has decided in principle to amend section 21(4) of the Sales Tax Act, 1990 for the “treatment of blacklisted/suspected units”.

The new law would effectively check use of sales tax invoices issued by the blacklisted units/companies.

The CBR is also reviewing Starr refund automation system to check wrong claims of refund by the business community.

Sources said that collectorates of sales tax did not have a uniform methodology to deal with the suspected units.

The CBR has recently compiled eleven new lists of such units falling in the jurisdiction of Large Taxpayer Unit (LTU), Karachi, (East and West), Hyderabad, Quetta (Hub), Lahore, Multan, Peshawar, Rawalpindi, Gujranwala and Faisalabad.

The lists were complied on the basis of the data provided by the Sales Tax Information System, which include manufacturers, wholesalers, dealers, service providers, traders, enterprises, electrical units, footwear units, stainless steel units, cargo services, furniture shops, industrial units, hosiery units and other categories of taxpayers.

The CBR has dispatched the lists to the respective collectorates of sales tax to verify the data with the record available with the regional offices. In case of any discrepancy, the collectors should inform about the latest status of such suspected units to the Board.

Moreover, the lists including sales tax registration numbers have also been dispatched to the Incharge Computers so that the computer department could independently verify the sales tax related data of the blacklisted persons.

Sources added that the newly established Starr automation refund system has collected enough data which would be instrumental in conducting audit to hunt persons involved in the business of fake invoices.

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