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Sales Tax Rules, 2006
CHAPTER-VIA Audit Selection and Conduct
From: 2023-12-07 - To: 0000-00-00 44A. Selection and conduct of audit.- (1) This rule shall apply to selection of cases for audit by the FBR under section 72B of the Sales Tax Act, 1990. (2) This following steps shall be followed for selection of cases for audit through a computer ballot on random and parametric selection basis for tax periods mentioned therein, namely:- a. data of all returns (e-filed and manually filed) shall be utilized as a basic data; b. the Board shall decide the cases of persons or classes of persons which are to be excluded from audit selection and such exclusions shall be publicized each year through FBR’s web-portal for information, prior to the process of balloting or selection; c. cases tailing under exclusions shall be identified and such cases shall be excluded from the data to be used for balloting; d. the data of the remaining cases shall be utilized for computer ballot for audit selection; e. for each tax period cases for audit shall be selected in accordance with the predetermined percentage, to be publicized through FBR’s web- portal, and prior to the balloting process, each year; f. immediately after computer ballot, the lists of selected case shall be generated and placed on FBR’s web-portal; g. the whole balloting system for audit selection shall be based only on the NTNs/ CNICs of the filers; h. the NTNs and CNICs of the cases selected for audit shall be communicated to concerned RTOs and LTUs as per their respective jurisdictions; i. for the purpose of selection of cases on parametric basis, risk parameters for persons or classes of persons to be used for balloting, wherever necessary, shall be determined by the Board, as under (I) risk parameters for persons or classes of persons to be used for balloting shall be determined by the Board: (II) audit selection parameters may be based upon the following:- (A) financial ratios for the year viz a viz the history of the case; (B) financial ratios viz a viz industrial, sectoral or national ratios; (C) industrial comparisons or bench marks; (D) quantum of losses or refunds beyond certain…
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