ByKarachi, Pakistan: The Sindh High Court (SHC) has issued notices to the Federal Board of Revenue (FBR) regarding the denial of input tax adjustments for services acquired from non-resident persons.
The petitioner, a Karachi-based energy company, has challenged the FBR’s decision to restrict input tax adjustments after the issuance of SRO No.350 (I)/ 2024. Business Recorder
The petitioner argues that they have always been allowed to claim input tax adjustments for services provided by non-residents and that the Sindh Revenue Board has no objections to this practice. They claim that the FBR’s recent changes to the e-portal have prevented them from claiming these adjustments.
The SHC has directed the FBR to provide an explanation for the changes made to the e-portal and the reasons for denying input tax adjustments. The court has also granted the petitioner an interim arrangement to continue claiming input tax adjustments until the final resolution of the case.
The SHC’s decision highlights the importance of clarity and consistency in tax regulations to ensure fair treatment for taxpayers.
