Karachi, January 4, 2025 – The Federal Board of Revenue (FBR) has introduced a clear procedure for taxpayers seeking an extension in filing their sales tax returns. This step aims to streamline compliance and provide relief to registered persons facing genuine difficulties.
Under Section 26AB of the Sales Tax Act, 1990, taxpayers can apply for an extension in submitting their returns. This section outlines the requirements and conditions under which such requests may be approved.
According to Section 26AB, a registered person obligated to furnish a return under Section 26 must formally apply in writing to the Commissioner for an extension. The application should be submitted by the original due date for filing the return, as stipulated under Section 2(9) of the Act.
The Commissioner may grant an extension if satisfied that the applicant is unable to file their return on time due to specific circumstances, such as:
• Absence from Pakistan.
• Sickness or unforeseen misadventures.
• Any other reasonable cause deemed valid.
The extension period typically cannot exceed 15 days from the original due date unless exceptional circumstances justify a longer duration. If the Commissioner denies an extension, the taxpayer can escalate the matter to the Chief Commissioner, who may grant additional time, again not exceeding 15 days without exceptional justification.
While these extensions offer flexibility in submitting returns, they do not alter the due date for the payment of sales tax under Section 6. Consequently, any delay in payment beyond the original deadline will attract default surcharges as specified under Section 34.
The FBR emphasized that these measures aim to balance compliance requirements with fairness, ensuring that taxpayers facing genuine difficulties are not unduly penalized. This procedural clarification also reinforces the importance of timely return filing to maintain transparency in the tax system.
Tax practitioners and registered persons are advised to review the provisions of Section 26AB thoroughly to understand the process for requesting extensions. With clear guidelines in place, the FBR expects taxpayers to adhere to deadlines unless valid reasons necessitate an extension.
The move underscores the FBR’s commitment to fostering a taxpayer-friendly environment while ensuring compliance with sales tax regulations.