Fertilizer industry concerned over show cause notices from FBR – Latest News – The Nation

ISLAMABAD – Fertilizer industry has expressed considerations over show cause notices from FBR for disallowance of enter tax for gross sales to unregistered individuals.
In a letter to chairman FBR Dr Muhammad Ashfaq Ahmed, Fertilizer Producers of Pakistan Advisory Council (FMPAC) has proven considerations over show cause notices from FBR gained by means of industry gamers for disallowance of enter tax for gross sales to unregistered individuals regardless of following the information set by means of the FBR in its SRO 1337 issued in December 2020.
In line with Government Director FMPAC, Brig (retd) Sher Shah Malik, fertilizer industry appreciates the efforts of FBR against documentation of financial system and simplicity of doing industry. It used to be via industry’s cooperation and toughen that over 1,000 main fertilizer sellers have registered themselves for GST and virtually one hundred pc are having NTN. “In the similar context, we need to draw your consideration to the next factor,” he added.
ED FMPAC additional defined that submit promulgation of the Tax Rules (2nd Modification) Ordinance 2019, enter GST used to be disallowed on gross sales made to unregistered individuals exceeding Rs10 million in a month/ Rs100 million in a monetary yr, including vital publicity for the fertilizer industry. After due deliberation, FBR issued a notification (SRO 1337) in December 2020, wherein exemption could be granted topic to provision of sellers’ data, together with checking account and many others to FBR. The industry has submitted all data touching on the sellers with the exception of in few circumstances financial institution accounts of terminated/ one-off shoppers. All over quite a lot of conferences, the industry used to be given an working out concerning the exemption being granted on this case after compliance of SRO 1337.
Brig (retd) Sher Shah Malik mentioned that it is vitally worrying reality that businesses have began receiving show cause notices for disallowance of enter tax for gross sales to unregistered individuals regardless of submission of the aforementioned data and a beneficial record from concerned box formation. Whilst bringing up in its letter to FBR that fertilizer industry is without doubt one of the very best documented and tax compliant sectors, FMPAC asked FBR chairman that the sphere formations be skilled on grant of exemption from enter tax inadmissibility/ expenditure disallowance on gross sales to unregistered sellers whose data has been furnished in compliance with the SRO and be directed to withdraw the notices.

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