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Cosmetic firm delaying over Rs94m FED

Cosmetic firm delaying over Rs94m FED

KARACHI: Federal Board of Revenue is yet to recover federal excise duty from a cosmetics company a month after it was liable to pay Rs 94.12 million. Earlier Regional Tax Officer (RTO)-III after detecting serious discrepancies in the ledgers of the company issued notice to pay evaded FED.

Sources said that tax office was earlier keen to settle the issue under the table but strong resistance compelled them to issue show-cause notice to the company. They said that despite the issuance of notice, the department had so far not taken any action for the recovery of evaded FED.

According to the notice, the company had not paid a single penny on account of FED but showed Rs 26.8 million paid in this regard. Besides that, the company with no manufacturing unit, has also claimed 50 percent sales tax exemption under SRO 117(1)/2011, which is applicable only for manufacturers.

Therefore, the said amount is recoverable under relevant sections of Sales Tax and Federal Excise Acts and the department is liable to take legal action against the company, the notice said.

Official sources confirmed to have issued notice to the company, saying that department had served notice of hearing on the company but no representative has so far appeared before the concerned authority. They also dispelled the impression of any illegal effort to protect the company, adding that action would be taken against the company after the lapse of legal period.