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FBR directs four companies to pay evaded amount of Rs230m on priority basis

FBR directs four companies to pay evaded amount of Rs230m on priority basis

ISLAMABAD: Federal Board of Revenue (FBR) issued notices to four companies to pay Rs230 million in the head of sales tax and ordered the related RTOs for legal proceeding in case of non-compliance of FBR notices.

According to details FBR issued notice to M/s Pesco (NTN 2228080) registered with RTO Peshawar made payments to suppliers but did not withheld 1/5th of sales tax. This resulted into non deduction of sales tax of Rs.73.67 million during tax year 2016. Likewise another notice has been issued to M/s Punjab Beverage Company Private Limited (NTN 0660311-4) registered with RTO Faisalabad. The company made payments to its suppliers but did not withheld 1/5th of sales tax amounting to Rs97.37 million during the tax period from July 2015 to May 2016.

Third notice has issued to M/s Advance Telecom (NTN 2848905-5) registered with Large Taxpayer Unit Karachi received advertisement services from twenty four advertisement service providers. However, amount of sales tax shown in sales tax invoices issued by service provider was not deposited into government treasury by the recipient but adjusted as input tax. This resulted in loss of government revenue of Rs44.69 million.

According to fourth notice M/s Onyx Trading (NTN 2486509-5) registered with RTO II Karachi did not pay withholding tax deducted from the suppliers of guar seeds during the tax period from July 2013 to June 2015. The tax payer contended that the supply of guar gum was exempt under entry of the Sixth Schedule of the Sales Tax Act 1990 hence was not required to deduct withholding tax.

The contention of the tax payers was rejected by the appellate authority vide an order in appeal no 29 and 30 dated 21st July 201. This resulted in non-withholding tax of sales tax of Rs12.40 million.