ISLAMABAD: Federal Board of Revenue (FBR) issued procedure for sanctioning refund claims on sales tax collected against imported goods.
The FBR issued SRO 918(I)/2019 on Thursday to amend Sales Tax Rules, 2006.
A new rule 34A is inserted related to sanction of refund claims of import-related sales tax by the collectorates of customs.
The FBR said that sales tax refund filed by an importer for import-related sales tax paid in excess due to inadvertence, error or misconception, or as result of a competent adjudication or appellate authority, claimed within the period as prescribed under section 66 of the Act, may be decided and allowed by the concerned officer of Customs, not below the rank of an Assistant Collector subject to sub-rules (2) and (3) below.
(2) In the case of registered person while applying for refund to the concerned Customs Collectorate, the applicant must endorse a copy of the refund application to the Refund Division of the concerned RTO or LTU. The concerned Collectorate of Customs shall not process the claim unless a confirmation from suchInland Revenue office, that no adjustment or payment of the amount claimed in refund has been made, has been received.
The concerned RTO or LTU on receipt of a reference from Collectorate of Customs shallcommunicate such confirmation, or otherwise, within thirty days of receipt of the reference.
(3) In case of an unregistered importer, the refund shall be processed by the concerned Customs Collectoratewithout prior reference to RTO or LTU.
(4) The sales tax refund files after issuance of refund payment order by the relevant Customs officer shall be sent through proper channel, in the case of registered person to the RTO or LTU concerned, and in the case of unregistered person to the nearest RTO where the customs station is located. The refund sanctioning authority of the Customs Collectorate shall mention the number and date, etc. of RTO’s or LTU’s confirmation of regarding non-adjustment of tax involved or non-payment of refund, if applicable, in his sanction order.
(5) On receipt of such sanction order from Customs Collectorate by the concerned officer-in-charge in RTO or LTU, he shall make the entry of the sanction order in the Computerized System, and after obtaining permission of the Commissioner concerned, generate RPO of the sanctioned amount for electronic transmission to CSTRO. The amount of such sales tax refund shall be debited from the head of sales tax (on imports).