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Sequel to MoU: FBR likely to notify ST cross-adjustment today

Sequel to MoU: FBR likely to notify ST cross-adjustment today

ISLAMABAD: Following the signing of an MoU, the Federal Board of Revenue is likely to issue a notification on Monday (today) to allow cross-adjustment of sales tax on goods and services levied by the federal and provincial governments, from July 1, 2014. As per details, the FBR will issue the notification on clearance from the Law and Justice Division. It is to be recalled that the FBR has already signed a Memorandum of Understanding (MoU) with the Sindh Revenue Board (SRB) and Punjab Revenue Authority (PRA) with the aim to allow cross-adjustment of sales tax on goods and services levied by the centre and provinces.

The FBR will now issue a notification to declare sales tax levied as input tax. The MoU was signed to resolve the issues arising subsequent to Sales Tax Act, 1990 as input tax on the transfer of collection of sales tax on services to the provinces after the 18th Amendment to facilitate the taxpayers working under the respective federal and provincial sales tax laws and to create a harmonious and conducive business environment.