Karachi: In a letter addressed to the Federal Board of Revenue (FBR), the Karachi Tax Bar Association (KTBA) has brought the matter of taxpayers being unable to avail the input sales tax adjustment (due to the non-availability of the option to adjust or alter their profile) in the ‘Tax Asaan’ application to the taxation agency’s attention – according to news sources.
The tax bar has maintained that under Section 8B of the Sales Tax Act, 1990, FBR bars taxpayers from using input tax adjustments; however, taxpayers are still offered certain exclusions.
‘After introduction of Sales Tax Real-time Invoice Verification (STRIVe), there are impediments at the time of filing sales tax returns to avail the exclusion,’ according to the statement.
The KTBA also states that only certain taxpayers are provided with the option of exclusion under SRO 1190(I)/2019. Subsequently, the taxpayers who are dealing in multiple business operations, or haven’t upgraded their tax profiles on the Tax Asaan app were not able to avail the aforementioned exclusions.
The KTBA argues that the tax authority has yet to provide
clear instructions regarding business classification on FBR’s IRIS platform.
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