Audit parameters for exporters under DTRE scheme

ISLAMABAD (September 26 2003): The Central Board of Revenue (CBR) has devised parameters for audit of exporters operating under the Duty and Tax Remission for Export (DTRE) scheme, sources told Business Recorder here on Thursday.

The CBR has given several incentives to the exporters registered under the DTRE scheme, but the absence of sales tax audit checklist was creating problems both for the exporters and the sales tax auditors.

Now, the sales tax audit of DTRE approved exporters would be conducted utilising information collected through checklist/verification system.

The verification system would ensure that the exporters registered under the DTRE scheme were actually following the laid down procedure.

The CBR has directed all the collectors of the sales tax to follow the new checklist, which would be included in the DTRE audit reports in future.

Under the procedure, the sales tax auditors would check that the approvals of DTRE have been given to the exporters in accordance with the Customs General Order (CGO) 12/2002.

This include checking of applications, documents required from the first time applicants and those needed at the time of each application.

The auditors would prepare a summary of imported/locally purchased input goods by the exporters and input-output ratio would also be examined to ascertain the actual payment of duties and taxes.

The auditors would verify whether the declared input goods are actually consumed/used in the production of finished products and closing stocks would be physically verified.

The data on disposal of waste includes quantity, throw away quantity, sold quantity, value in rupees and amount of the sales tax.

Furthermore, the auditors would disclose any violation of rules, etc., by the exporters.

The auditors would also give their comments on verification process.

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