- The Federal Board of Revenue (FBR) has updated the Income Tax Rules, 2002, giving the Commissioner Inland Revenue the power to suspend sales tax registration without notice.
- The aim is to combat tax evasion, fraud, and establish a stricter regulatory framework.
- The Commissioner can suspend registration if there is evidence of fake invoices, tax evasion, or fraud.
- Suspension can occur without prior notice if certain conditions are met, such as non-availability of the registered person, refusal to grant access to business premises, or non-filing of sales tax returns.
- Suspension will be executed through a written order and will be communicated to relevant parties and computer systems.
- Non-filing of sales tax returns for six consecutive months will result in automatic suspension.
- If buyers or suppliers associated with the suspended person belong to another jurisdiction, the Commissioner will inform the Chief Commissioner of that jurisdiction.
- During the suspension period, the suspended person will not be eligible for input tax adjustment/refund, and other registered persons cannot claim input tax adjustment/refund based on invoices from the suspended person.
- The Commissioner must issue a show cause notice within seven days of the suspension order, providing an opportunity for a hearing within fifteen days.
- If a show cause notice is not issued within seven days, the suspension order becomes void.
- If the suspended person is not available at the given address, the notice may be affixed on the main notice board of the LTU/RTO.
- The Commissioner may revoke the suspension if satisfied with the response received after the show cause notice and hearing.
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
