SRB probes foreign transactions of goods carrier, suspends sales tax registration

KARACHI: Sindh Revenue Board (SRB) has launched investigation into identifying source of foreign transactions by a goods carrier company. Further the SRB suspended the sales tax registration of the company for filing untrue monthly statement.

The SRB on Monday said that it had suspended sales tax registration of M/s. 3 Unicorns Private Limited for concealing facts in its monthly statements.

The SRB said that available records of the company revealed that it had declared foreign income of around Rs37 million (in its income tax return) for the tax periods from July 2016 to June 2017, and has received consideration of Rs109 million for the tax periods from July 2016 up to February 2019 in his business bank account maintained under the title of ‘3 Unicorns Pvt Ltd’ in Bank Al Habib Limited, as declared in his registration profile.

Furthermore, the official website of the company revealed that the registered person also provides customs brokerage and customs clearance services and transportation services from Karachi to Afghanistan.

However, t is observed that the registered person has continuously filed Null sales tax return with the SRB during the aforementioned tax periods i.e. July 2016 to February 2019 despite receiving aforementioned huge consideration in his bank account which was voluntarily declared in registration form.

“The registered person has failed to justify the aforesaid Null declarations and has failed to provide details of sales and purchases till date which shows mala fide intention on part of the registered person towards short payment of SST and violation of Section 8, 9 and 30 of the Act.”

The SRB said that non-payment of Sindh sales tax and non-filing of true and correct sales tax return within the time and manner prescribed under the law is contravention of provisions of the Act and rules made thereunder.

Therefore, this notice is being issued under Section 25 of the Act, 2011 to the effect that registration status of M/s. 3 Unicorns Pvt Ltd is hereby temporary suspended with immediate effect, which shall be revoked if he takes remedial actions by February 14, 2020.

The SRB directed the company to submit copies of complete annual accounts statement for the financial year 2016/2017, 2017/2018 and 2018/2019 with details of sales and purchases.

The company has been asked to provide details of transactions with sources of amounts received for the tax periods from July 2016 up to January 2020.

Reconcile all Sindh sales tax dues of the aforementioned tax periods and deposit along with default surcharge. Further, the company also has been directed to provide copies of rent agreements for the periods.

“In case of non-satisfactory response or failure to take remedial measures as suggested above on or before aforementioned date, further necessary action shall be taken as envisaged under the Act,” the SRB said.

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