KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of an information technology (IT) firm for unrealistic adjustment of input tax adjustment.
According to a notice, the SRB suspended sales tax registration of M/s. Cube XS Weatherly (Pvt) Limited. The SRB said that the taxpayer had filed nil return for the tax periods from October 2013 to January 2019 and claimed / adjusted heavy amount of input tax wherein the input-to-output tax ratio is as much as 2,573 percent, which is neither economically possible nor is allowed under provision of Sindh Sales Tax Act, 2011.
The SRB further said that the taxpayer had adjusted/claimed full amount of input tax without apportioning the same which was tantamount to tax fraud and was also contravention under provincial tax laws.
The taxpayers had been asked in hearing on February 14, 2019 to furnish the copies of audited financial statements along with bifurcation of revenues/sales but registered person failed to do so.
“The registered person has neither deposited the Sindh sales tax nor e-filed the returns for the tax period of February 2019,” the SRB said.
The SRB directed the taxpayer to take remedial actions by April 25, 2019 to revoke the suspension.
In case of non-satisfactory response or failure to take remedial measures on or before April 25, 2019 the case would be further proceeded for cancellation of the taxpayer’s registration with SRB, the notice said.