As a registered person under the Sales Tax Act, 1990, you may be eligible for refunds on the input tax you pay on your purchases. This article explains the basic provisions, outlining eligibility and procedures for claiming input tax refunds in Pakistan.
Eligibility:
You are eligible for an input tax refund if:
- The input tax paid on taxable purchases during a tax period exceeds the output tax on your zero-rated local supplies or exports.
- You have filed a refund claim within the timeframe specified by the Board.
Refund Process:
- Submit a properly formatted refund claim within 45 days of the end of the tax period.
- The Board may specify additional conditions and procedures for claiming refunds through official notifications.
Key Points:
- Excess input tax against non-zero-rated/non-export supplies can be carried forward to the next tax period and treated as input tax for that period.
- The Board can prescribe specific fixed rates and procedures for refunding input tax against exports.
- Any outstanding taxes, default surcharges, or penalties will be deducted from your refund amount.
- The Board can investigate the validity of your refund claim, with potential extensions to the investigation period in specific cases.
Remember:
- This information is for general awareness only and does not constitute tax advice. Consult a qualified tax advisor for specific guidance.
- Stay updated on any official notifications regarding changes in refund procedures or eligibility criteria.
- Ensure accurate record-keeping and timely filing of claims to maximize your eligible refunds.
By understanding these points and seeking professional advice when needed, you can navigate the input tax refund process efficiently and claim your rightful reimbursements.
