Sunday , November 29 2020
Breaking News
Home / Islamabad / Penalties likely to go up for ‘false’ return filers, ST non-registered
Penalties likely to go up for ‘false’ return filers, ST non-registered

Penalties likely to go up for ‘false’ return filers, ST non-registered

ISLAMABAD: The government in the Finance Bill (2014-15) is expected to enhance penalty on sales tax registered persons involved in filing ‘untrue and incorrect returns’ and also increase penalties for non-registration with the sales tax department.

As per details, the FBR has proposed amendments to the Sales Tax Act 1990 for enhancing penalties for non-registration as well as penalty for untrue and incorrect sales tax returns.

The amendments would be required in section 33 of the Sales Tax Act pertaining to penalties and offences. Section 33 has prescribed penalties for any person who repeats erroneous calculation in the return during a year whereby amount of tax less than the actual tax due is paid. Similarly penalties have been prescribed for any person who is required to apply for registration under Sales Tax Act fails to make an application for registration before making taxable supplies.

The persons engaged in taxable activities without obtaining sales tax registration may be subjected to fixed penalty with higher rate from the next fiscal year. The fixed penalty for non-registration with the sales tax department would also encourage un-registered business units to come into the tax net.

In the past, different rates of penalties were applicable to non-compliant persons under the Sales Tax Act.