Sales Tax Instructions

Sales Tax Instructions, 2009
instruments shall remain unaffected by the proviso to section 73 even though no further
tax is charged, levied or paid thereon.
[Issued by the CBR, Islamabad under the signature of
Secretary ST-L&P addressed to all the Collectors.]
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Dr. Ashfaq Ahmed Tunio,
C.NO. STR/2060/2000 DATED 17 TH JULY, 2002
SUBJECT:-
FRAUD BY EXPORTERS BY WAY OF SUBMITTING BOGUS/
FAKE INVOICES AND FORGED DOCUMENTS FOR
CLAIMING REFUND
Kindly refer to the Board‘s letter No.3 (17)-ST-L&P 01 dated 04-07-2002 on the
subject cited above.
2. In order to circumvent the provision of section 73. The following tricks
frauds are normally employed:-
The buyer issues a crossed-cheque in favor of supplier. Who in return issues a
bearer cheque (―sell‖ or ―cash‖). There both cheque are handed over to the bank.
A credit entry of amount equal to the amount mentioned in the crossed cheque is
made in the AC of the buyer showing cash deposit. Where as no cash is
physically deposited. Then the crossed cheque is posted in the account debiting
the posted credit amount resulting closing balance of the account debiting the
posted credit amount resulting closing balance of the account equal to the
opening balance of the account on the day. Then the crossed cheque is posted in
the account of the supplier showing transfer of the crossed cheque amount in the
account of the supplier from the account of the buyer on the same day. Then
bearer cheque is posted on the same in the account of the supplier by making
debit entry of the cheque amount resulting closing balance of the account equal
to the opening balance of the account on the day. This all is done with
connivance of the bank staff.
The other way is that both cheque are handed over to a third Party broker who
invests the transaction for the day and manages reflection of transfer of amount
from the account of the buyer to the account of supplier. On commission a 1.5%
to 2% (approximately) of the amount of the tax involved. This party deposits an
amount equal to the amount of the crossed cheque to the bank. The bank transfers
the cheque amount into the account of the supplier. Then this party presents the
bearer cheque to the bank and withdraws the amount. This entire exercise is
completed the same day. In this way transaction through bank is fraudulently
shown between the buyer and the supplier without making any real transaction
between them. In this and the above case account of both parties i.e. buyer and
supplier are opened in the same bank branch with nominal deposits.