ISLAMABAD: The unilateral amendments to the monthly sales tax return forms by the Sindh Revenue Board (SRB) have hindered the smooth e-filing of returns, said the Karachi Tax Bar Association (KTBA) on Monday.

In a statement, the KTBA said that the restriction on debit/credit notes reporting in monthly sales tax returns was causing a delay in compliance for taxpayers to e-file their returns.

In a letter to SRB chairman Wasif Ali Memon, the association mentioned the lacunas of the amendments which were made without any legal cover and resulted in the denial of input tax to registered service recipients with reduced rates.

The KTBA demanded that the changes applied to the SRB portal should be reversed to enable the taxpayers to discharge their sales tax liability and e-file their returns promptly.

The statement added that the SRB may follow a similar process of declaring debit/credit notes as enforced by the Federal Board of Revenue (FBR) where debit/credit notes reporting is allowed on a provisional basis and the same notes are reverted if corresponding debit/credit notes are not endorsed by either person in his returns.

It further stated that the FBR system also comprises various exceptions for services provided to unregistered persons, adding that possible situations, as a result, may also be considered before implementing any change on the SRB portal.

Published in Dawn, March 28th, 2023