ISLAMABAD, April 24: The Central Board of Revenue (CBR) has allowed adjustment of liabilities of one tax against refund of another to facilitate businessmen.
The decision was announced through a general order issued here on Tuesday. The CBR has also issued inter-tax refund and adjustment procedures for availing the facility.
According to the decision, any tax liability of customs duty, federal excise duty, sales tax or income tax payable by a taxpayer--whether current or arrears-- may, on the written request of the concerned taxpayer be adjusted against his refund of any of these taxes, which has been sanctioned and approved by a competent authority.
The facility would only be available to those who fulfill the following procedure and conditions:
The refund claim has been duly processed and found to be admissible under relevant law / rules, whether wholly or partially;
The taxpayer submits an application for inter-tax adjustment to both the officers concerned citing relevant particulars of the refund claimed and the tax payable by him;
The application for inter-tax adjustment may be submitted any time before or after approval / sanction of the refund claim, but at least 30 days before the due date for filling of the return or payment of the tax involved.
The competent officer shall issue a refund cheque in the name of the appropriate collector of customs, federal excise and sales tax or commissioner of income tax, which shall be deposited in the treasury in the proper head of account.
A copy of the payment slip, adjustment memo or challan shall be provided to the taxpayer who shall mention particulars in his relevant tax return or declaration.
