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Manually filed tax returns: LTUs, RTOs told to comply with courts orders

Manually filed tax returns: LTUs, RTOs told to comply with courts orders

ISLAMABAD: The Large Tax Units (LTUs) and Regional Tax Offices (RTOs) will accept Sales Tax and Federal Excise Duty returns filed manually following orders of the High Courts whereby certain petitioners have been granted claim adjustment of provincial sales tax on services under the provincial laws.

According to the FBR instructions, the board has decided that manually filed sales tax/federal excise returns in all the cases shall be invariably accepted by the LTUs/RTOs where writ petitions have been filed in the high courts, challenging the vires of clause (22A) of section 2 of the Sales Tax Act, 1990 and where the courts have directed the FBR and its functionaries to accept returns of the petitioners electronically or manually by allowing adjustment claimed by the petitioners of Provincial Sales Tax on Services under the provincial laws, subject to final outcome of the writ petitions.

The board has also refrained all the Chief Commissioners from taking action under section 33 & 34 of the Sales Tax Act, 1990 with respect to returns filed manually within the due date of filing of returns. Pakistan Revenue Automation Limited (Pral) has been requested not to take any action with respect to active taxpayers’ status of the petitioners. This dispensation shall be available till further orders in cases where copies of orders of the high courts have been provided to the authorities concerned containing specific directions to the FBR/ its functionaries.