The new IRIS facility will allow steel melters and re-rollers to declare verified electricity consumption when DISCOs fail to report supplies or file returns late.
ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a facility allowing steel sector taxpayers to declare electricity units consumed during a month for calculating their sales tax liability.
According to the FBR, Annex-K of the Sales Tax Return is mandatory for steel melters, re-rollers and composite units to calculate the correct sales tax liability under the Thirteenth Schedule of the Sales Tax Act, 1990.
Annex-K is fully automated and normally receives electricity consumption data automatically after the relevant distribution companies (DISCOs) file their Annex-C returns for the respective period.
However, the FBR said taxpayers have been facing difficulties where DISCOs either fail to declare supplies made to taxpayers or submit their returns after the relevant deadline.
To facilitate taxpayers in the steel sector, particularly melters and re-rollers, the FBR has developed an interface for the concerned Chief Commissioners Inland Revenue (CCIRs).
Under the new mechanism, taxpayers can apply online through the Iris automated system to the relevant CCIR for declaration of electricity units consumed during the month.
The application must be submitted within the statutory period along with the necessary details and supporting information.
The concerned CCIR will verify the relevant records and electricity bill or bills before approving the consumed electricity units through the online system.
Following approval, the verified electricity units will automatically be transferred to Annex-K. This will enable taxpayers to calculate their correct sales tax liability and file their sales tax returns accordingly.
The FBR has directed its field formations to utilise the new facility and process applications in accordance with the prescribed procedure.
It has also asked the concerned CCIRs to ensure that applications are disposed of within the applicable statutory timelines.
The move is aimed at addressing reporting issues arising from delayed or missing DISCO data and facilitating compliant taxpayers in the steel sector in accurately determining their sales tax liabilities.