Law: Federal Tax Ombudsman Ordinance, 2000

Section: 10

Law: Sales Tax Act, 1990

Section: 9

FEDERAL TAX OMBUDSMAN ORDINANCE, 2000---Section: 10 - Federal Ombudsman Institutional Reforms Act, 2013, Section: 9 - Sales Tax Act, 1990, Section: 9 - Maladministration - Excess payment of sales tax - Debit and credit note - Refund - Claim declined by the department - Complaint to F.T.O -FACTSThe complaint was filed in terms of Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 against non-provision in the sales tax return to take care of the excess amount of sales tax paid inadvertently.ARGUMENTSIt is submitted that, any amount of tax paid in excess of the amount payable can be claimed through refund u/s 66 of the Sales Tax Act, 1990. The taxpayer/complainant may be directed to apply for filing o refund u/s 66 of the Sales Tax Act, 1990 for excess payment, if any.DECISION(a) FBR’s failure to develop, a system which should facilitate the common taxpayers is tantamount to maladministration - However, as per the complainant there are instances of inadvertent excess payment when a taxpayer makes payment in bank through CPR in a process to settle the tax liability calculated by the automated system but meanwhile the tax liability in system is reduced either due to extra credit availability on account of compliance by his suppliers or buyers (ATL inclusion). Whereas, the return form will not show this excess payment neither the CPR amount paid can be changed or sub divided. Hence this amount will not be available to adjust or claim. Thus, the taxpayer will be helpless even to prove and claim refund under section 66 as overpaid inadvertence or error or misconstruction case. FBR’s failure to develop, a system which should facilitate the common taxpayers in making tax compliance is tantamount to maladministration as defined in section 2(3)(i)(b) of the FTO Ordinance, 2000.(b) Necessary amendments in sales tax return form should be made-Member IT and PRAL to make necessary amendments in sales tax return form and add a calculation field for difference between Paid Amount and payable amount as “Excess Payment” in last empty column of return.The Excess Payment if any, shall be available for adjustment in subsequent tax period; and report compliance within 45…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492