The Sindh Revenue Board (SRB) has suspended the sales tax registration of Wateen Telecom Limited due to the company’s failure to remit collected sales tax to the provincial treasury. The decision came after an audit revealed significant lapses in tax payments by the telecom provider.
According to a notice issued by the SRB on Monday, a detailed review of Wateen Telecom’s tax profile showed that the company had failed to deposit the Sindh Sales Tax for August 2019. Additionally, it was found that the tax payments for the months of June and July 2019 were deposited late, violating the prescribed deadlines under the Sindh Sales Tax on Services Act, 2011.
“Non-payment of Sindh Sales Tax within the time and manner prescribed under the law constitutes a clear contravention of the provisions laid out in the Sindh Sales Tax on Services Act, 2011 and its corresponding rules,” the SRB stated in its notice.
The tax authority further highlighted that despite charging and collecting Sindh sales tax from its customers, Wateen Telecom Limited failed to deposit the collected taxes into the provincial government’s account. This failure, the SRB emphasized, is not only a breach of legal obligations but also affects the revenue stream vital for public expenditure and development projects in Sindh.
The SRB also disclosed that this was not Wateen Telecom’s first instance of non-compliance. The company had been previously issued suspension notices on three separate occasions—March 16, 2018, May 16, 2018, and June 20, 2019—due to non-filing and non-payment of sales tax for multiple periods, including January, February, and April 2018, as well as May 2019. Despite these notices, Wateen Telecom continued to delay its tax deposits.
As a consequence, the SRB has now suspended the sales tax registration of Wateen Telecom Limited with immediate effect. The suspension means the company will be unable to conduct taxable activities or claim input tax adjustments unless the registration is reinstated.
However, the SRB has provided an opportunity for Wateen Telecom to rectify the situation. The telecom provider has been advised to take immediate remedial actions, including settling its outstanding sales tax liabilities, to have the suspension revoked. The deadline for compliance has been set for September 30, 2024. If the company fails to take corrective measures or provide a satisfactory response by this date, the SRB will proceed with the cancellation of its registration.
This development underscores the SRB’s continued efforts to enforce tax compliance and ensure businesses meet their financial obligations under the provincial tax laws.