KARACHI: The Sindh Revenue Board (SRB) on Thursday announced an incentive package for sales tax on services relating to taxpayers/WHT agents who failed to pay sales tax on services or payment of withheld amount of Sindh Sales Tax.
In this regard, the SRB has issued a notification, exempting the whole of the amount of penalty and such of the amount of default surcharge as is in excess of the amount of default surcharge.
The principal amount of tax and the following amounts of the default surcharge thereon are deposited in the prescribed manner in Sindh Government’s head of account include the principal amount of tax (as outstanding on the 19th May, 2017) along with 5% of the amount of default surcharge thereon if deposited during the period from 19thMay, 2017 to 25th May, 2017; the principal amount of tax (as outstanding on the 19th May, 2017) along with 10% of the amount of default surcharge thereon if deposited during the period from 26thMay, 2017 to 2ndJune, 2017; and the principal amount of tax (as outstanding on the 19th May, 2017) along with 20% of the amount of default surcharge thereon if deposited during the period from 3rd June, 2017 to 9th June, 2017.
The benefits of exemption of penalty and default surcharge also be available in relation to the arrears of the tax (as outstanding on the 19th May, 2017) payable under the Sindh Sales Tax Ordinance, 2000 and under the Sindh Sales Tax on Services Act, 2011 by persons who are liable to be registered under section 24 of the Act but were not registered, provided that:- (a) they get themselves registered with SRB in the prescribed manner during the aforementioned periods from 18th May, 2017 to the 9th June, 2017; they e-deposit their tax liabilities for the principal amount of tax along with the aforementioned percentages of the amount of default surcharge thereon in relation to the tax periods from the date of the commencement of their economic activity to the tax period of May, 2017 and they also e-file their tax returns, for the tax periods from the tax period of the commencement of their economic activity of taxable services to the tax period May, 2017, during the period from the date of this notification to the 23rd June.
The benefits of this notification shall also be available in cases where a person has late paid the principal amount of tax prior to the date of this notification but has not yet discharged the liability of penalty (whether the prescribed amount or the adjudged amount of the penalty) and default surcharge on such late payment provided that he pays an amount equal to 10% of such amount of penalty (as outstanding on the 19th May, 2017) and 25 per cent of such amount of default surcharge (as outstanding on the 19th May, 2017) in Sindh Government’s head of account during the period from 19th May, 2017 to the 9th June, 2017.
“If the whole of the dues of the principal amount of tax and the aforementioned prescribed percentages of the amount of default surcharge thereon are paid by a person in terms of this notification, he shall not be prosecuted under section 49 of the Act, and the offence, to the extent of the arrears of the tax paid under this notification, shall also be compounded under section 46 of the Act”, said SRB.
Also, if the principal amount of tax and the aforementioned percentages of the amount of default surcharge thereon, as are paid in terms of this notification by the defaulters, are held to be not payable in view of the order issued by the respective competent authority (i.e. the adjudicating officer or the Commissioner (Appeals) or the Appellate Tribunal or the Court of Law, the Officer of the SRB, not below the rank of an Assistant Commissioner, shall allow tax adjustment/credit of the amount or, alternately, shall refund the amount, so paid, within 90 days from the date of receipt of the taxpayer’s application, for refund or tax adjustment/credit, together with a copy of the order/judgment and also of the evidence that the incidence of the tax was not passed on to the service recipient.
The notification shall not apply to the refund or adjustment of any amount of tax or default surcharge or penalty as has already been paid before the 19th May, 2017.