Islamabad, Federal Board of Revenue FBR on Wednesday further eased conditions for waiver of default surcharge and penalties on account of illegally adjusted input Sales Tax to further facilitate tax payers.
FBR today issued SRO 774(I)/2012 which supersedes earlier SRO 606(I)/2012 dated 01.06.2012 which exempted default surcharge and penalties on outstanding Sales Tax on account of illegally adjusted input tax. The condition for this earlier exemption was that full principal amount (illegally adjusted) is paid by 30th June, 2012. New SRO 774 further eases requirements for compliance.
According to new SRO 774, default surcharge and penalties payable on outstanding illegally adjusted input tax shall be exempt if tax payer pays 25 percent of principal amount of illegally adjusted Sales Tax by June 30, 2012. The remaining seventy-five percent of principal amount is to be paid in five equal monthly installments by December 31, 2012 with first installment payable on August 31, 2012.
The condition of withdrawal of cases, complaints or proceedings filed by tax payer before courts of law, FTO or any other authority has also been extended to 31st December, 2012. According to new SRO, benefit so provided shall cease to exist ab initio in case of failure of payment in government exchequer as per conditions laid down in SRO.