Law: Sales Tax Act, 1990

Section: 11,14,19

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 9,10

Sales Tax Act (VII of 1990)- -Ss. 14, 11 & 19-Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), Ss. 9 & 10-Jurisdiction, functions and powers of the Federal Tax Ombudsman-Scope- Complaint against proceedings initiated against complainant for sales tax registration and realization of sales tax-Contention of complainant, inter alia, was that he was not required to register for sales tax under S. 14 of the Sales Tax Act, 1990-Validity- Department had issued notice to the complainant to inquire about his position with regard to sales tax registration and realization of sales tax, and complainant, instead of filing a reply to the said notice, preferred to file complaint before the Federal Tax Ombudsman- Federal Tax Ombudsman observed that issuance of notice does not cause any grievance or prejudice for filing of complaint-Complaint was rejected, in circumstances. 2016 PTD (Trib.) 2348 ref. FINDINGS BY: ABDUR RAUF CHAUDHRY, FEDERAL TAX OMBUDSMAN:---.--- The complaint has been filed under section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 (FTO Ordinance) against the proceedings initiated for sales tax registration and realization of tax amounting to Rs. 185.958 million for tax years 2013, 2014 and 2015 vide notice No. 340 dated 04.10.2016 and No.361 dated 19.10.2016. 2. Briefly stated, the Inland Revenue Officer, Layyah issued a notice for realization of sales tax on the basis of audit observation raised by the Directorate of Revenue Receipts Audit (DRRA). In response, the AR vide letter dated 07.10.2016 contended that the Complainant was engaged in supplies of life saving medicines which were exempt from sales tax under S.R.O. 555(I)/2002 dated 23.08.2002, therefore, was not liable for registration under section 14 of the Sales Tax Act, 1990. Further contended that data retrieved from income tax return cannot be considered for calculating sales tax liability as held in a case cited as 2016 PTD (Trib.) 2348. Moreover,…

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