ISLAMABAD, June 12: The government has allowed registered/enrolled persons and retailers to file revised return on payment of evaded amount of tax, additional tax and penalty.

Through the Finance Bill 2003-04, the tax authorities introduced the amendments in section 26, 26A and 26AA of the Sales Tax Act 1990 to allow the facility, which would not only facilitate the taxpayers, but would also resulted in increase of maximum revenue. Earlier, there was no concept of filing of revised return in the Sales Tax Act.

However, full or partial exemption from payment of penalty in certain cases has also been granted, while show-cause notice should also stand abated on payment of tax and penalty.

The present provisions of law did not allow sales tax registered persons to deduct the amount of sales tax paid on purchases during any preceding tax period, which could not be taken into account for the purpose of total amount of input tax during that period for any reason. With this, a large number of refund claims were arising, whose disposal was inordinately delayed causing inconvenience to the taxpayers.

Through other amendments in the section 7 of Sales Tax Act, the tax authorities have allowed adjustment of input tax of preceding three months.

Under budgetary SRO500, the government granted reduction and waiver the past liabilities of sales tax to already registered persons, and non-registered persons have been provided the incentives to come into the tax net by August 31, 2003. No audit would be conducted of the persons availing benefit of this notification.

Through the Finance Bill, new entry No 60 has been added in the sixth schedule to grant exemption on supply of fixed assets against which the input tax adjustment was not available under a notification issued in terms of clause (b) of sub-section (1) of section 8 of the Sales Tax Act 1990.

The section 33 of the sales tax has been amended to reduce the penalty for late filing of return for the first 15 days of due date.

According to other amendments made in the Sales Tax Act, the condition on voluntarily registered persons to remain registered for two years has been waived. Necessary amendment in the relevant sections of the act and the rules has been made.

Presently, registered persons applying for de-registration was required to continuously file the return under section 26 till the collector cancels his registration.

To facilitate taxpayers, amendment in the relevant provisions of the act and the rules has been made to allow the registered persons not to file any sales tax return after making application for de-registration except for final return as per orders of the collector on his application for de-registration.

Through the Finance Bill, section 45B of the Sales Tax Act has been amended to allow the registered person to deposit 15 per cent of the adjudged principal amount only before filing of appeal against the order. However, the powers of appellate authorities to grant stay have been kept intact.

The section 73 of the act has been changed completely. Now taxpayers have to show payment of sales tax only on transaction of above Rs25,000 through banking instrument. Restriction of payment within 20 days has also been removed.

Alternate dispute resolution facility had been provided to the taxpayers by insertion of section 47A. In order to ensure neutral status of the committee and to avoid delays in the settlement of disputes by the committee, member of the board would no more be a part of the committee, and unanimous recommendations of the committee have been made binding on the board as well as the applicant. Moreover, the cases sub-judice before the courts have been excluded from the purview of the committee.