Sales Tax Instructions

Sales Tax Instructions, 2009
3. The Additional AGP (Audit) was requested to give her valuable views. It was stated that
RRA Wing of Department of the Auditor General of Pakistan is responsible for conducting audit
of receipts in terms of Article 169 of the Constitution read with Section 12 of the Auditor
General‘s (Functions, Powers and Terms & Conditions of Service) Ordinance, 2001. So far Audit
has taken various steps to facilitate business community. Tri-partite meetings between the
Chairman CBR, Chairman Federation of Chamber of Commerce & Industry and the Auditor
General of Pakistan were held on 30.10.2001 and 14.01.2003 to resolve the issues relating to sales
tax audit. Two important meetings were held afterwards between the Chairman, CBR and the
Additional Auditor General on 01.04.2006 and 19.02.2007 wherein modalities of sales tax audit
were decided as under:-
i) DRRA teams will visit sales tax Collectorates and the Collectors will make available all
auditable record / information, including refund files, reward cases, departmental audit
report (internal or investigative) along with supporting files, etc. DRRA offices will also
be provided access to the entire computerized data of the sales tax registered persons
available centrally with the CBR / Collectorates for desk audit.
ii) On the basis of desk audit, the DRRA audit teams will select cases, which, in their
opinion, need examination. The list of such cases would be handed over by the audit team
to the concerned Collector who will ensure production of taxpayer‘s record under section
25 of the Sales Tax Act, 1990.
iii) There would be no direct interaction between DRRA audit team and taxpayers.
iv) The audit will be conducted at the Collectorates premises and in no case DRRA audit
team will visit premises of private taxpayers.
v) Sales tax Department will not use the name of DRRA for any activity to be performed by
them under the Sales Tax Act, 1990 nor the Department will relate any section / cell of
the Collectorate to the DRRA.
vi) The audit observations would be discussed by the leader of the audit teams with the
concerned Collectors. The Collectors would issue contravention reports only if the audit
observations are, in their opinion, legally tenable.
vii) There will be no ―stamping‖ of records of individual registered persons by the audit
teams. Audit reports issued by audit teams will suffice the requirement of audit.
viii)
The field offices will produce the records for audit properly / duly arranged.
4. The Additional AGP (Audit) informed that the DAG (RRA) has ensured that modalities
of sales tax audit agreed between the CBR, Federation of Chamber of Commerce & Industry and
Audit in various meetings and also meetings between the Chairman, CBR and the Additional AGP
(Audit) lastly held on 19 th February, 2007 would be got enforced in letter and spirit. Participants of
the meeting were apprised that desk audit has already been established in RRA offices and the
record of taxpayers will be requisitioned only if ―Materially‖ is established during desk audit. As
regards withdrawal of notices already issued to commercial importers and zero rated suppliers,
these may be treated as in-fructuous as the requisitioned record is no more required in view of
Desk Audit of record / documents available with the Collectorates of Sales Tax.