ISSUING AUTHORITY: SINDH REVENUE BOARD
POWERS EXERCISED U/S: 45 of Sindh Sales Tax on Services Act, 2011
NOTIFICATION NO: SRB-3 -4/11/2020
DATE OF ISSUANCE: JUNE 01, 2020
EFFECTIVE FROM: WITH IMMEDIATE EFFECT (i.e. JUNE 01, 2020)
AMENDMENTS MADE IN: SINDH SALES TAX ON SERVICES ACT, 2011
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SINDH SALES TAX INCENTIVE PACKAGE FOR TOTAL WAIVER OF PENALTY AND REMISSION OF UPTO 100% OF THE AMOUNT OF THE DEFAULT SURCHARGE
Through this notification the Sindh Revenue Board has allowed certain remission of penalty and default surcharge on the amount of sales tax payable as on 31st May 2020. The incentives announced through the aforesaid notification provide an opportunity to the taxpayers to get substantial waiver of their liability to pay penalties and default surcharge by depositing the outstanding amounts of tax liabilities during the period the said notification is valid.
The whole amount of tax is payable along with penalty and default surcharge as per percentages specified below:
|Deposit date||Principal Amount Payable||Penalty Payable||Default Surcharge Payable|
|1st June 2020 to 15th June 2020||100%||0%||0%|
|16th June 2020 to 22nd June 2020||100%||0%||5%|
|23rd June 2020 to 30th June 2020||100%||0%||10%|
- The above remission of Penalty and default surcharge shall also apply to arrears of tax as outstanding on 31st May 2020 by:
- persons who are liable to be registered under section 24 of the Act but were not registered, provided that:-
- they get themselves registered with SRB in the prescribed manner during the aforementioned periods from 1st June, 2020 to the 30th June, 2020.
- they deposit their tax liabilities for the principal amount of tax alongwith 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, 2020, in Sindh Government’s head of account “B-02384” in the prescribed manner by the due dates prescribed above.
- they also e-file their tax returns, for the tax periods from date of commencement of their economic activity of taxable services to the tax period May, 2020, during the period from the date of this notification to the 30th June, 2020.
- persons who were registered but were non-filers or null-filers or nil-filers of their tax returns;
- persons who were late-registered with SRB and they did not file all of their tax returns for the tax periods from the date of commencement of their economic activity of taxable services;
- persons who withheld any amount of Sindh sales tax but have not deposited the said withheld amount;
- persons who determine the arrears through self-detection and self-assessment;
- persons who short-paid any amount of tax in their tax returns;
- persons against whom any arrears of tax was detected in SRB’s scrutiny of tax returns or in SRB’s audit of taxpayers’ record;
- persons against whom any tax amount has been determined or assessed or adjudged, by an officer of the SRB, through an order or decision passed under the Sindh Sales Tax on Services Act, 2011, or the rules/notification issued thereunder;
- persons against whom any tax liability has been adjudged or confirmed by the Commissioner (Appeals) or the Appellate Tribunal;
- persons whose cases are under assessment or under adjudication with any officer of the SRB or are pending, at the appellate stage with the Commissioner (Appeals) or with the Appellate Tribunal;
- persons whose cases are under litigation in any court of law including the High Court and the Supreme Court
- The benefits of this notification, to the extent as specified below, shall also be available in cases where a person has late paid the principal amount of tax prior to the date of this notification and/or has not yet discharged the liability of penalty (whether the prescribed amount of penalty or the adjudged amount of the penalty) and default surcharge on such late payment as per percentages given below :-
|Deposit date||Penalty Payable||Default Surcharge Payable|
|1st June 2020 to 15th June 2020||5%||10%|
|16th June 2020 to 22nd June 2020||10%||15%|
|23rd June 2020 to 30th June 2020||15%||20%|
- If the whole of the dues of the principal amount of tax and the aforementioned prescribed percentage 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 the tax paid under this notification, shall also be compounded under section 46 of the Act.
- If the principal amount of tax and the aforementioned percentages of the amount of the default surcharge thereon, as are paid in terms of this notification by the persons described in clauses (vi), (vii), (viii), (ix), (x) and (xi) of paragraph 2 of this notification, 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 for tax adjustment/credit, together with a copy of the order/judgment an also of the evidence that the incidence of the tax was not passed on to the service recipient.
- This notification shall not apply for refund or adjustment of any amount of tax or default surcharge or penalty as has already been paid or recovered on any date on or before the 31st May, 2020.
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