ISLAMABAD, Oct 18: The Central Board of Revenue has allowed an adjustment of input tax by payphone, cellular phone, calling card companies and WLL service providers during the month in which bills are paid.

The decision was notified through a sales tax circular No 03 of 2005 issued here on Tuesday. According to the decision, for the purpose of input tax adjustment, utility bills were adjustable during the month in which the bills were paid.

Therefore, for calculating their net tax liability for a tax period, persons rendering or providing telecommunication services are required to make input tax adjustment on account of PTCL charges on the basis of bills paid during the same tax period.

In this way, such persons shall have ample time at their disposal to calculate their net tax liability and make payment of federal excise duty in respect of the prepaid telecommunication services provided during a month, by 21st day of the following month.

A number of companies providing the subject telecommunication services have approached the CBR and requested that since PTCL bills were received by them on 15th of the following month and are payable by 24th, it was not possible for them to make adjustment of input tax on account of PTCL bills by 21st of the following month by which date they are required to pay federal excise duty on their prepaid telecommunication services under SRO1004 of 2005.