The Federal Board of Revenue (FBR) has issued a notification (S.R.O. 1444(I)/2024) empowering Commissioners-IR (Income Tax) to condone time limits for applications related to the Sales Tax Act, 1990. This notification supersedes the previous notification issued in 2009.
What Does This Mean for Taxpayers?
This notification empowers Commissioners-IR to grant extensions for filing applications or completing actions required by the Sales Tax Act or related rules. Previously, taxpayers might have faced penalties for missing deadlines due to unforeseen circumstances. Now, they can apply for an extension and potentially avoid these consequences.
Conditions for Condonation of Time Limit:
However, there are specific conditions that must be met for the Commissioner-IR to consider condoning a delay:
- Application Submission: A registered person or their authorized representative must submit an application to the relevant Commissioner-IR explaining the reason for the delay.
- Decision Timeline:
- If no further information is required, the Commissioner-IR will decide the case within 30 days of receiving the application.
- If additional information is needed, the Commissioner-IR can request it. The decision will be made within 45 days of receiving the complete information.
- Merit-Based Decision: The Commissioner-IR will consider the merits of the application and record the reasons for approval or rejection.
- Maximum Extension: The maximum time limit that can be condoned is three years.
Reporting Requirement:
Commissioners-IR are required to submit a monthly report (soft form or otherwise) to the concerned Chief Commissioner-IR. This report details the cases processed in the previous month, including details like:
- Registered person’s name
- National Tax Number (NTN) or Sales Tax Registration Number (STRN)
- Initial application date
- Date of complete information submission
- Decision date
- Number of days condoned
Conclusion:
This FBR notification provides a welcome change for taxpayers by offering them the possibility of receiving extensions for missed deadlines related to the Sales Tax Act. Understanding the application process and conditions for condonation will be beneficial for registered persons facing delays due to unavoidable circumstances.
