FBR urged to resolve input adjustment on payment made through BOAD

FBR urged to resolve input adjustment on payment made through BOAD

KARACHI: Karachi Tax Bar Association (KTBA) on Thursday urged Federal Board of Revenue (FBR) to resolve the input adjustment issue on payment made through Bill of Additional Duty (BOAD).

The KTBA in a letter informed the FBR that it had highlighted the matter through communications dated November 27, 2013 and June 23, 2014, respectively whereby the issue of non-adjustment of input tax, paid through challan of BOAD was highlighted that a registered person remained unable to claim its input sales tax against the output sales tax.

The KTBA informed through the instant letter that the these paid challans of BOAD were still not available in the uploadable format in the system due to which the issue was still persist.

The tax bar pointed out that the issue had been duly addressed at the WeBOC system already and the PRAL through its communication on December 05, 2013 intimated that the provision for the requested adjustment had been made available for payment made through WeBOC system in the online sales tax return portal.

A similar mechanism should be devised and put in place for the adjustment of sales tax paid through BOAD for challans paid through One Customs as well, which has been held pending for a considerable time period for the last five years.

The issue needs to be addressed and resolved, the KTBA said.