PTBP Web Desk
The Federal Board of Revenue (FBR) has introduced a comprehensive “checklist” for processing condonation cases related to time-limit extensions under the Sales Tax Act 1990.
This new checklist is part of a sales tax circular issued by the FBR on Wednesday, aimed at streamlining the process for taxpayers who need an extension of time.
The checklist requires taxpayers to respond to 14 specific questions to qualify for the condonation of the time period. This step is crucial for taxpayers who need to comply with the regulations set forth in section 74 of the Sales Tax Act, 1990. The FBR has established this procedure to ensure that requests for condonation are processed in a more structured and efficient manner.
To apply for an extension of time or period, the registered person must submit an application to the Commissioner of Inland Revenue (Commissioner-IR) who has jurisdiction over their case. The application must clearly outline the grounds for the delay. This process is in accordance with SRO.1444(1)/2024 dated 12.09.2024, which provides a legal framework for handling such requests.
When the condonation requested exceeds three years, the process becomes more stringent. The Commissioner-IR is required to review the grounds mentioned in the application and can also request additional information if needed. After thorough consideration, the Commissioner-IR must send a categorical recommendation to the FBR using a specified format. This recommendation must be forwarded within fifteen working days of receiving the application. If further information is required, the timeline is counted from the date this information is received.
Upon receiving the recommendation from the Commissioner-IR, the FBR will review the application and the accompanying recommendation to decide on the request. The Board will then communicate its decision, whether an approval or rejection, to both the Commissioner-IR and the applicant. This new procedure ensures that decisions are made based on a thorough examination of all relevant factors, making the process more transparent and efficient for all parties involved.
This new circular supersedes the previous Sales Tax Circular No.01/2024/IR Operations dated 04.03.2024. By issuing this updated checklist, the FBR aims to provide a clearer and more consistent framework for handling condonation cases, thereby reducing ambiguities and improving compliance.
For taxpayers, this new checklist means they need to be more vigilant and prepared when applying for a condonation of time. The detailed questions outlined in the checklist are designed to ensure that only genuine cases of delay are granted an extension. This move is expected to enhance the accountability and transparency of the tax compliance process.
