KTBA seeks further date extension for sales tax payment, return filing

KTBA seeks further date extension for sales tax payment, return filing

KARACHI: Karachi Tax Bar Association (KTBA) on Tuesday urged the Federal Board of Revenue (FBR) to further extend the last date for sales tax payment and filing monthly return as taxpayers are unable to comply with statutory requirement due to extended Eid holidays.

The tax bar asked the tax authorities to extend the date of payment of sales tax and date of e-filing of the monthly sales tax return for the period April 2021 till May 24, 2021 and May 27, 2021, respectively to facilitate members of the bar and the compliant taxpayers to fulfill their legal obligation.

While referring to a notification previously issued by the FBR to extend the date for payment of sales tax and filing monthly return for the period April 2021 issued on May 06, 2021, the date of payment was extended up to May 18, 2021 followed by filing of sales tax return till May 21, 2021.

The KTBA said that may taxpayers and bar members had approached the association informing that the extended date (two days) for payment of sales tax for the tax period April 2021 was insufficient as businesses were not functional properly after Eid Holidays that were during May 10 to May 15, 2021 followed by Sunday on May 16, 2021.

The KTBA also highlighted that in many cases taxpayers were unable to submit Annexure C as the last date of furnishing of Annexure C was May 10, 2021 which was also a holiday on account of Eid. It is important to note that unless Annexure C is submitted, sales tax payment amount cannot be calculated as payment of sales tax is dependent upon submission of Annexure C.

The tax bar further informed that provincial revenue authorities had extended deadline for payments and filing of their respective sales tax returns between May 21 and May 27.

“It is important to highlight that federal sales tax return cannot be furnished before the dates as extended by the provincial revenue authorities owing to the fact that input tax relating to services falling under the provincial domain can only be claimed in federal sales tax return once corresponding provincial sales tax return has been submitted by respective service provider,” the KTBA said.