ISLAMABAD, Nov 21: The Federal Board of Revenue (FBR) has allowed taxpayers seeking time extension and condoning delay for making any application or performing an act.

A set of procedures has been notified by FBR through a Sales Tax General Order 54 of 2008 issued on Friday.

The FBR has clarified that the board has powers under section 74 of the Sales Tax Act, 1990, to extend any deadline or time limit provided in the act for making any application or performing an act.

The FBR received several requests for condoning time delays or allowing extension in exercise of these powers. Almost all such cases require confirmation of factual position.

The FBR has mandated that for ensuring uniformity and transparency in cases seeking exercise of power under section 74 of the Sales Tax Act, 1990, the registered persons shall apply to the collector having jurisdiction for extension of time period specifying the grounds for delay.

The collector after considering the grounds mentioned and any other information called for by him shall send his categorical recommendations regarding rejection or approval of the request specifying the reasons.

Similarly, in case of positive recommendations, the collector shall also suggest the period of extension. In case a request is directly received in the FBR, the same shall be forwarded to the concerned collector for action.

However, in cases where the FBR is satisfied that sufficient information is available, the orders as deemed fit may be passed without referring the matter to the collector.

According to the procedure, the collector shall forward his recommendation to the FBR within 15 days of the receipt of the application in RTOs/ LTUs. In case the collector calls for further information, the said period shall be reckoned from the day of receipt of such information.

After receipt of recommendations from the collector, the FBR shall examine the request and the recommendations and communicate approval or rejection of the request to collector as well as to the applicant.