ISLAMABAD (January 16 2004): The Central Board of Revenue (CBR) has assured the All Pakistan Sizing Industries Association (Apsia) that sales tax auditors will not frame contravention cases against the sizing industry provided the units deposit the agreed amount of sales tax in time.
Over 1000 sizing units of Faisalabad will pay Rs 28 million as sales tax against Rs 25 million deposited in the previous fiscal year (increase of Rs 3 million).
After the meeting here on Thursday with Member Sales Tax, Shahid Ahmed, Chairman Apsia, Mirza Shafique Ahmed told Business Recorder that sales tax officials are fully aware of the last year's agreement with former Member Sales Tax Ramazan Bhatti that the units will pay fixed amount of sales tax every year.
He said that the Shahid Ahmed was instrumental in convincing the association to pay genuine increment in sales tax along with required documentation.
The CBR would sympathetically consider their genuine demands, as the association has assured to pay enhanced amount of sales tax from current financial year.
The association also assured that the units operating within the jurisdiction of other sales tax Collectorates would also deposit the enhanced amount of sales tax.
As far as section 40B is concerned, the CBR may exercise this power only in exceptional cases of tax fraud/evasion with concurrence of the concerned association, Shafique added.
The CBR would inform Apsia before deputing any tax official for monitoring of production/sale. However, there will be no need of applying this section in case they deposit the agreed amount of sales tax, he added.
The sizing industry has given assurance of voluntarily increase in sales tax. Hence, CBR would not take any action against the industry, Chairman of the association added.