KARACHI (May 06 2005): The Sales Tax Collectorate has launched a drive against 7000 textile suppliers in Karachi, for not filing monthly summary statements giving details of transactions made by them. It has sought co-operation of textile associations to persuade suppliers making supplies to their member exporters, to comply with the statutory requirement made in the last budget.
Under the new rule, the suppliers are required to file monthly statement giving details of sale transactions including dates and sales tax registration of the buyer.
A team of Sales Tax officers visited the Towel Manufacturers Association (TMA) on Tuesday and discussed ways and means to persuade suppliers making supplies to the towel exporters, to file summary statements. The summary statements, thus filed, help the Sales Tax authorities to match the details, provided in invoices, submitted by the exporters to seek refund.
It may be pointed out that a number of cases of getting huge refund on fake invoices by the textile exporters were detected in the past and the department had adopted safeguard measures to check the phenomenon.
TMA founder Chairman S.M.A. Rizvi received the delegation and offered every co-operation to the Sales Tax officials in their drive.
During the meeting other issues relating to sales tax refund, registration and de-registration were discussed. The officials assured the TMA of resolution of all problems being faced by the towel exporters.
The Sales Tax House sources said the co-operation extended by textile associations in the drive had shown a positive impact and a number of summary statement had been filed by the suppliers. They expressed gratitude to the TMA for the co-operation.
The sources said that to seek trade bodies' co-operation in drive against the defaulters was part of the Central Board of Revenue's policy to take the trade into confidence in all matters.
The Sales Tax officials have planned to visit other textile associations to seek co-operation against the defaulting suppliers.