SRB suspends sales tax registration of M/s. Jiya Enterprises for non-payment, input adjustment on fake invoice


KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Jiya Enterprises for claiming input tax against fake invoices and non-payment of tax collected as withholding agent.
The SRB through a notification suspended the sales tax registration of the company on the basis of following grounds:
— The taxpayer has failed to deposit Sindh sales tax charged and collected form M/s. Pakistan State Oil amounting Rs 2.5 million on account of the services provided.
— The taxpayer has claimed input tax of Rs4.11 million against fake invoices showing taxable purchases from Mr. Ulfat Ali, the proprietor of M/s. The Lunch Box, who himself repudiated from the ownership of M/s. The Lunch Box through a daily newspaper dated March 23, 2018. Besides, he has also filed application for lodging of FIR in PIB Colony Police Station wherein he has stated that he does not own the company and his CNIC has been misused for the purpose of obtaining NTN. Hence the said amount of input tax claimed and adjusted by M/s. Jiya Enterprises against the fake, false, forged, flying or fraudulent invoices.
— The taxpayer has failed to e-file the monthly sales tax return for the periods September 2016 to June 2017, August 2017 to January 2018 and March 2018 under Sindh Sales Tax on Services Act, 2011 in the time limitation.
— The taxpayer has failed to produce the records as required against the office letter under the law.
The SRB said that the taxpayer had been informed time and again in writing and through telephone discussions about the offences yet the taxpayers failed to deposit the amount and also failed to e-file the returns.
The SRB said that the suspension of sales tax registration would be revoked if the taxpayer takes following remedial action:
— To discharge sales tax liabilities of Rs6.7 million
— To e-file the true and correct monthly sales tax returns for the specified periods
The SRB further warned that in case of non-satisfactory response or failure to take remedial measures on or before April 30, 2018, the case would be proceeded for cancellation of the registration with SRB.