LAHORE: Lahore High Court (LHC) has restricted the Federal Board of Revenue (FBR) from sales tax audit of commercial importers and issued a stay order on M/s SI Trading appeal.
As per details of the case, Justice Shahid Karim of Lahore High Court (LHC) heard the appeal filed by M/s SI Trading in which the counsel for appellant Muhammad Mohsin Virk advocate argued before the court that commercial audit of importers is a violation of Section 7(A) of Sales Tax Act.
Virk said that SRO 597 is contradictory with section 7(A) of sales tax act and commercial audit creates stress for the importers. Counsel prayed before the court to declare the sales tax audit of commercial importers as null and void.
On the other side, the representative of Federal Board of Revenue (FBR) argued before the court that FBR is conducting the audit of commercial importers under the rules 58-E, 2006, adding that Section 72B of income tax allows FBR for audit of commercial importers.
After hearing arguments from both sides, Lahore High Court (LHC) issued a stay order and stopped FBR from sales tax audit of commercial importers.