MEETING WITH REPRESENTATIVES OF CORPORATE TAXPAYERS OF LTU KARACHI FOR COMPLIANCE ON CHANGES IN SALES TAX LAW
MEETING WITH REPRESENTATIVES OF CORPORATE TAX PAYERS OF LTU FOR COMPLIANCE ON CHANGES IN SALES TAX LAWS
A meeting with the representatives of corporate tax payers was held at Large Taxpayers Unit (LTU) Karachi for implementation of changes in Sales Tax Laws on 05.09.2013. The Chief Commissioner Inland Revenue, LTU Karachi welcomed the taxpayers and showed her satisfaction in active participation of tax matters.
The Commissioner Zone 1,LTU Karachi explained the provision of requirements specified in Sales Tax General Order (STGO) 28 of 2013 dated 5th July 2013 related to sales tax @ 17% on retail price basis by the manufacturers to be printed on items specified in the third schedule to Sales Tax Act 1990. The identified tax payers were asked to comply with requirement of informing the Commissioner of Inland revenue about the stocks as in hand on 12th June 2013 with full description and quantity on which sales tax was printed @ 16% or on which no retail price was printed. The sales tax on respect of supplies of such stocks are required to be paid @ 17% with effect from 13th June 2013. These identified taxpayers were informed that non compliance of these requirements will lead to tax audit immediately.
Earlier workshops in small groups were held on daily basis from 18.08.2013 to 29.08.2013 to educate LTU taxpayers and representatives of trade bodies regarding amendments made through Finance Act 2013 in Income Tax Ordinance 2001, Sales Tax Act 1990 and Federal Excise Act 2005. Desk audit of Sales Tax & Federal Excise returns for the tax periods June and July 2013 were specially carried out and companies who did not comply with the recent changes in the provisions of Sales Tax & Federal Excise were identified. Statutory notices were issued for compliance. During this meeting, the taxpayers who did not pay their due sales tax liability at enhanced rate of 17% on retail prices were asked to pay their liability immediately to avoid any further legal actions. The representatives of taxpayers in turn ensured their compliance of their due tax liability.