KARACHI: Federal Board of Revenue (FBR) has suspended sales tax registration of leading internet service provider M/s. Gemnet Enterprises for refusing to provide record for audit.
According to details the Corporate Regional Tax Office (CRTO) has selected the case of M/s Gemnet Enterprises Solutions (Private) Limited for sales tax audit for the period July 2015 to June 2016.
The registered person failed to furnish requisite record/information, even after providing ample opportunity for compliance.
Non-compliance of notice issued under section 25 of Sales Tax Act, 1990 is the violation of the provisions of the 1990 Act and Rules made thereunder.
The non-compliance warrants suspension/blacklisting, according to the notice issued by the CRTO.
It further said that the proposition for suspension without showcause notice (where it has been so provided and required by law itself) stand confirmed by the Honorable Sindh High Court as per its landmark decision in the case of M/s. Sh. Diwan Mohammad Mushtaq Ahmed vs Central Board of Revenue reported in  Vol Taxation 198.
In view of the foregoing facts and in order to safeguard the revenue, the sales tax registration in respect of M/s. Gemnet Enterprises Solutions (Pvt) Limited is hereby suspended and the name of the registered person is deleted from the list of Active units list.