RTO Hyderabad Clamps Down on Black And Brown Bakers

RTO Hyderabad Clamps Down on Black And Brown Bakers

Hyderabad, June 27, 2024 – The Regional Tax Office (RTO) in Hyderabad has taken decisive action against a renowned bakery chain in the city, sealing two of its branches for non-compliance with integration requirements mandated by the Federal Board of Revenue (FBR).

The focal point of this operation, Assistant Commissioner-IR Hafiz Tariq Aziz, acting on the directives of Commissioner-IR Zone-I Naib Ali Pathan, sealed two branches of M/s Black And Brown Bakers. The targeted outlets are located at Wadhu-Wah and Qasim Chowk in Hyderabad. This action was approved by Chief Commissioner-IR Dr. Khalid Malik, Regional Tax Office, Hyderabad, under the violation of Sr.No.25A of Section 33 of the Sales Tax Act, 1990.

M/s Black And Brown Bakers, being a Tier-1 retailer, are obligated to integrate their retail outlets with the FBR’s Computerized System for real-time reporting of sales, as specified under sub-clause (a) of clause (43A) of Section 2 of the Sales Tax Act, 1990. The integration is crucial for transparent and accurate reporting of sales, ensuring compliance with tax regulations.

Despite multiple notices issued by the Regional Tax Office Hyderabad, aimed at encouraging compliance and integration, M/s Black And Brown Bakers remained non-compliant. The notices were issued in the true spirit of justice, giving the bakery ample opportunity to adhere to the regulations. However, their persistent non-compliance led to the sealing of the two branches.

The action underscores the RTO Hyderabad’s commitment to enforcing tax laws and ensuring compliance among retailers. The sealed branches of M/s Black And Brown Bakers will remain closed until further orders, pending their adherence to the required integration with the FBR’s system.

This move is part of a broader effort by the RTO to enhance transparency and compliance within the retail sector. By integrating retail outlets with the FBR’s Computerized System, the authorities aim to curb tax evasion and improve the accuracy of sales reporting. This integration not only benefits the tax authorities but also promotes fair business practices by ensuring that all retailers operate on a level playing field.

The sealing of the branches serves as a warning to other retailers who may be non-compliant with the FBR’s integration requirements. The RTO Hyderabad has reiterated its stance on strict enforcement of tax laws and has urged all retailers to ensure timely integration with the FBR’s system to avoid similar punitive actions.

In conclusion, the sealing of M/s Black And Brown Bakers’ branches highlights the RTO Hyderabad’s unwavering resolve to uphold tax compliance and transparency. Retailers are advised to take note and comply with the regulations to foster a fair and accountable business environment.