Federal Board of Revenue (FBR) has issued a new Standard Operating Procedure (SOP) to simplify the process of requesting time extensions under the Sales Tax Act. This move aims to improve transparency, efficiency, and predictability for businesses.
Key Points:
- Sales Tax Circular No. 1 of 2024 outlines the SOP for requesting time extensions under Section 74 of the Sales Tax Act, 1990.
- Registered businesses can now apply to the Commissioner Inland Revenue for time extensions, clearly stating the reason for the delay.
- The Commissioner will review the request and provide recommendations to the FBR Board within 15 days.
- The Board will then approve or reject the request and communicate the decision to both parties.
- This SOP also applies to time extensions under Section 43(2) of the Federal Excise Act, 2005.
- This circular replaces Sales Tax Circular No. 02 of 2020/IR Operations.
Benefits:
- Streamlined process for requesting time extensions under the Sales Tax Law.
- Increased transparency and clarity for businesses.
- More predictable regulatory environment.
- Expected to contribute to smoother resolution of time extension cases.
The FBR’s proactive approach in establishing clear guidelines demonstrates their commitment to better serve businesses and improve overall tax administration.
