KTBA requests solving adjustment of input tax

KARACHI: Karachi Tax Bar Association (KTBA) on Thursday requested the FBR to solve the issue of input tax adjustment.

KTBA wrote a letter to Dr. Hamid Ateeq Sarwar Member IR–Policy, Federal Board of Revenue (FBR) referring to earlier letters nos. KTBA/2013/0583, KTBA/2014/184 dated November 27, 2013 and June 23, 2014 respectively, whereby the issue of Non-adjustment of input tax, paid through challans of Bills of Additional Duty [BOAD] was highlighted.

These letter stated that a registered person remains unable to claim its input sales tax against the output sales tax. Through these letter KTBA brought  to knowledge that these paid challans of BOAD are still not available in the uploadable format in the system, due to which the issue still persists. 2. It is notable to mention here that this issue has been duly addressed at the Weboc system already and the PRAL vide its letter numbered PRAL/Automation/2013/047 dated December 5, 2013 intimated that the provision for the requested adjustment was made available for payment made through WeBOC system in the online sales tax return portal.

KTBA maintained that a similar mechanism needs to be devised and put in place for the adjustment of sales tax paid through BOAD for challans paid through One Customs as well, which has been held pending for a considerable time period that is to say five (05) years. The issue needs to be addressed and resolved as there should not be any iota of doubt that input claim of the payment of this tax is very much the legitimate right of taxpayers which he is still deprived off, which, therefore need to be looked into.

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