FBR Urges Expedited Processing of Sales Tax Refunds

Islamabad: On October 18, a news report stated that the Federal Board of Revenue (FBR) has directed its field offices to accelerate the processing of sales tax refunds. The FBR's directives have been issued to all Chief Commissioners of Inland Revenue and are specifically related to the handling of sales tax refunds that encompass multiple tax periods and rely on carry-forward balances.

According to the FBR's guidelines, individuals or entities eligible for non-export and/or input tax carry-forward-based sales tax refunds under Rule 34 of the Sales Tax Rules, 2006, are required to file their claims by submitting Form-7A along with their Sales Tax Return.

However, it has been noted that Form-7A is currently not enabled, causing challenges for registered individuals seeking refunds under this rule. Importantly, non-export-related refund claims necessitate thorough examination and cannot be processed alongside export-related claims through the FASTER system.

In response to these challenges and with the aim of facilitating the implementation of rules and addressing refund-related issues faced by registered individuals or entities, the FBR, utilizing its authority under section 55 of the Sales Tax Act, 1990, has allowed the submission of carry-forward-based non-export-related refunds through RCPS at tax offices within STARR or through the Expeditious Refund System (ERS) until June 2024 or until Form 7A becomes available online.

Field formations have been advised to accept, process, and promptly resolve such refund claims in compliance with the law.

For More Details Visit Pakistan's Most Active Property Forum:

http://www.lahorerealestate.com/ads