SRB Notification

Sindh Revenue Board (SRB) initiated a “one-time” incentive scheme for defaulters of provincial sales tax on services.

The SRB has notified a tax incentive scheme under which exemptions have been provided from payment of penalties and default surcharge to the taxpayers and defaulters, provided they deposit the principal amount of arrears of the Sindh Sales Tax during the month of June, 2021 as per detail below:

1. There would be a total exemption of penalty and default surcharge if the principal amounts of arrears is deposited until June 12, 2021.
2. 5% and 10% of the amounts of default surcharge will be payable if the tax amounts are deposited up to June 21 and June 30 respectively, while penalty will remain be totally exempted.

Further elaborations are mentioned below:

1. Exemption of penalty and default Surcharge shall also be available to below persons in relation to arrears of tax payable under

• The Sales Tax Ordinance, 2000
• Sindh Sales Tax on Services Act, 2011

• Person who are liable to be registered (under section 24) but not registered if:

• They get them registered with SRB during 01^st June 2021 to 30^th June 2021
• They deposited their tax liabilities (principal amount and given percentages of the default surcharge) from the date of commencement of their economic activity to the tax period May, 2021.
• They also e-file their tax returns

• Persons who were registered but were non-filers/nil-filers/null-filers
• Persons who were late-registered with SRB and did not file all of their returns
• Persons who withheld any amount of Sindh ST but have either not deposited in Sindh Governments’ account or have deposited in any other account
• 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 were 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; and
• persons whose cases are under litigation in any court of law including the High Court and the Supreme Court.

1. The benefit shall also be available to those persons who has paid tax after due date,they shall deposit the amount of tax in the following manner:

1. A person shall not be prosecuted under section 49 of the Act, and the offence, to the extent of the arrears of the tax paid under this notification, shall also be compounded under section 46 of the Act.
2. If the tax paid by person (under this notification) described in clause (vi) to (xi) of para 2, are held to be not payable in view of the order issued by the respective competent authority shall be refunded or allowed tax credit to the taxpayer within 90 days after the receipt of application..
3. The exemption 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, 2021.

LINK OF DOCUMENT                             

 SRB_3_4_8_2021