The Sindh Revenue Board (SRB) has taken stringent action against a stock broker firm M/s. Reliance Securities Limited, suspending its sales tax registration due to a failure to fulfill tax payment obligations and non-compliance with filing monthly returns.
In a notification issued on Tuesday, the SRB outlined the grounds for the suspension, citing two key reasons:
1. Failure to Discharge Sales Tax Liability: Reliance Securities Limited allegedly neglected to settle its Sindh sales tax liability for services provided during the period from January 2019 to April 2019.
2. Non-Filing of Sales Tax Returns: The company is accused of failing to file Sindh sales tax returns for the tax periods spanning from January 2019 to April 2019.
The SRB specified that the sales tax registration suspension is effective from July 22, 2019. However, the board has outlined a path for the reinstatement of the registration, contingent on the company taking immediate remedial actions. The prescribed remedial measures include:
• Discharging Outstanding Tax Liability: Reliance Securities Limited is required to settle the due Sindh sales tax liability, accompanied by default surcharge, for the tax period from January 2019 to April 2019.
• Filing Correct Monthly Returns: The company must file true and correct monthly Sindh sales tax returns for the tax periods from January 2019 to April 2019.
The SRB has set a compliance date for these remedial actions, fixed on August 02, 2019. The board warns that a failure to respond satisfactorily or implement the necessary remedial measures by the stipulated compliance date will lead to further consequences.
If the company does not comply within the given timeframe, the SRB reserves the right to proceed with the cancellation of its registration. Furthermore, the case will be forwarded to M/s. Pakistan Stock Exchange for potential revocation of the license. This is on account of the alleged contravention and violation of provincial tax laws, as stated by the SRB in its notification.
The suspension of sales tax registration and the subsequent threat of license revocation underscores the government’s commitment to enforcing tax compliance among businesses and ensuring adherence to provincial tax laws. The SRB’s actions serve as a stern warning to other entities in the financial sector, emphasizing the importance of fulfilling tax obligations promptly and maintaining strict compliance with regulatory requirements. Reliance Securities Limited now faces a critical period to rectify its tax-related discrepancies and avoid further punitive measures.
