ISLAMABAD (July 23 2003) : Large Taxpayer Unit (LTU), Karachi has submitted thirteen cases to the Central Board of Revenue (CBR) for recovery of huge amount of sales tax from public/private sector companies.
Sales tax external audit wing and regional authorities have expedited working on these cases relating to 1997-98 and 1998-99 and progress will be reviewed in the next Public Accounts Committee (PAC) meeting.
In most of the cases, LTU, Karachi has recommended to the Revenue Receipt Audit to settle these cases on merit keeping in view the nature of the case.
CBR ST External Audit Wing will co-ordinate with the Revenue Receipt Authorities to finalise the cases.
In one case involving Rs 510297 sales tax recovery, an oil mill of Karachi paid the differential amount of sales tax on 'Hydrogen Gas' to the tune of Rs 369,968 during 1990-1995.
The delayed payment of sales tax made the registered person was liable to be charged with additional tax and surcharge.
The case was adjudicated against the registered person.
Later, Appellate Tribunal Bench-III, Karachi on an appeal filed by the unit recommended settlement of the case.
Similarly, LTU has proposed to settle another case involving amount of Rs 230302 following withdrawal of show cause notice pertaining to delay payment of sales tax.
Two multinational companies violated section 3, 6, 7 and section 29 of the Sales Tax Act, 1990 involving Rs 2785799 and Rs 3281484 respectively.
They claimed/deducted input from the output tax in different period.
In one case, the adjudication officer vacated the show cause notice by slapping 3 per cent penalty.
Secondly, the Departmental Account Committee (DAC) recommended for settlement of case as well.
An oil marketing company received advance payment against the supplies to be made without paying sales tax and violated section 2(44) of the Sales Tax Act.
The adjudicating authority has vacated the show cause notices and recommended settlement.
Furthermore, a printing company sold used vehicles without depositing sales tax in the national kitty.
The case involving Rs 1026416 is still pending before the judicial fora.
A gas supplying company is involved in two different cases involving Rs 242356750 and Rs 26870990.
It did not deposited sales tax on taxable supplies made by sale of furniture, office/construction equipment and old vehicles.
It was also engaged in manufacture/supply of tools and equipment, but no tax was deposited.
Both these cases are pending with the Collector (Adjudication), Karachi-III.
LTU, Karachi also recommended five other cases belonging to different companies for settlement involving Rs 13345585.