Islamabad:Federal Board of Revenue has taken yet another step to further facilitate tax payers. Today, SRO 774(I)/2012 dated 27.06.2012 is issued which supersedes the earlier SRO 606(I)/2012 dated 01.06.2012 which exempted the default surcharge and penalties on outstanding Sales Tax on account of illegally adjusted input tax. The condition for this earlier exemption was that the full principal amount (illegally adjusted) is paid by 30th June, 2012. The new SRO 774 further eases requirements for compliance.
According to the new SRO 774, default surcharge and penalties payable on outstanding illegally adjusted input tax shall be exempt if the tax payer pays twenty-five percent of the principal amount of illegally adjusted Sales tax by 30th June, 2012. The remaining seventy-five percent of the principal amount is to be paid in five equal monthly installments by 31st December, 2012 with the first installment payable on 31st August, 2012.
The condition of withdrawal of cases, complaints or proceedings filed by the tax payer before courts of law, FTO or any other authority has also been extended to 31st December, 2012. According to the new SRO the benefit so provided shall cease to exist ab initio in case of failure of payment in the government exchequer as per the conditions laid down in the SRO.