KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of a logistic service provider based in Islamabad for alleged tax evasion.
Sources in SRB said that the provincial revenue authority had suspended sales tax registration of M/s. Capital Marketing Services for suppressing sales for evading tax payment for the period July 2014 to June 2018.
The SRB said that short declaration of sales and non-payment of Sindh Sales Tax is contravention of Sales Tax Act, 2011 and the rules made thereunder.
Record available shows that M/s. Wazir Ali Industries Limited, M/s. Dalda Foods Limited, M/s. Engro Food Limited and M/s. Engro Polymer & Chemical Limited have declared purchases of Rs 329.78 million (including sales tax of Rs27.68 million from M/s. Capital Marketing Services during July 2014 to June 2018, and have also paid sales tax amount of Rs5.09 million to M/s. Capital Marketing Services for onward payment in SRB’s head of account.
However, M/s. Capital Marketing Services have declared sales of Rs90.38 million during July 2014 to June 2018 with SRB leading to sales suppression of Rs239.39 million and short payment of sales tax of Rs5.09 million.
“This is serious violation of provisions of the Act 2011 and the rules made thereunder,” the SRB said.
The SRB suspended the sales tax registration of the company with immediate effect and directed the company that the suspension would only be revoked if remedial measures are taken by March 26, 2019.
The SRB directed the company to declare all sales and discharge all Sindh Sales Tax dues along with default surcharge under section 44 of the Act, 2011 for the tax period. Further the company has been directed to e-file the true and correct monthly Sindh sales tax return for the said tax periods.
In case of non-satisfactory response or failure to take remedial measures as suggested above on or before March 26, 2019, further necessary action would be taken as envisaged under the Act.