ANOMALIES IN SALES TAX

1
ANOMALIES IN SALES TAX FEDERAL EXCISE
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Adnan Mufti FCA
• Partner, Shekha Mufti
• The Institute of Chartered Accountants of
  Pakistan
• 24 February 2009

An independent member firm of MOORE
STEPHENS INTRNATIONAL LIMITED members in
principles cities across the world
2
OVERVIEW

SHEKHA MUFTI CHARTERED ACCOUNTANTS

• SALES TAX
• POLICY INTERPRETATION OF ISSUES
• Audit by Directorate of Revenue Receipt Audit
  (DRRA)
• Export Refunds
• Refund on Building Materials, Steel, etc
• Refunds under Section 66
• Multiple Audits
• Record Keeping Audit
• Toll Manufacturing
• Work Back Assessment
• Consumption of Procured Goods vs. Taxable
  Activity
• Accounting for Refunds

3
OVERVIEW

SHEKHA MUFTI CHARTERED ACCOUNTANTS

• SALES TAX (cont)
• LEGAL ISSUES
• Value of Supply not inclusive of Special Excise
  Duty
• Market Values
• Taxation of Retailers
• Award of Stay by Collector (Appeals)
• Sales Return beyond 180 days
• Recovery of Adjudged Tax
• Revised Return
• Wastage
• Input tax Credit on Fixed Assets
• Input Tax on Goods Destroyed
• Mismatching of Penal Interest

4
OVERVIEW
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• SALES TAX (cont)
• PROCEDURAL MATTERS
• Apportionment of Input Tax on Exports
• Audit Report
• Verification of Transactions
• Alternative Dispute Resolution

5
OVERVIEW
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• FEDERAL EXCISE
• LEGAL ISSUES
• Duty Adjustment
• Basis of Duty Adjustment
• Credit Debit Note
• SED Drawback
• Mandatory Payment Before Filing Appeals
• PROCEDURAL MATTERS
• Duty on Franchise Fee / Royalty

6
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• SALES TAX

7
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Policy Interpretation of Issues

8
AUDIT BY DIRECTORATE OF REVENUE RECEIPT AUDIT
(DRRA)
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• The Sales Tax Appellate Tribunals and Peshawar
  High Court have held that DRRA has no powers of
  audit of taxpayers records. Despite this, the
  department continues to issue DRRA audit notices
  to the taxpayers.
• Suggested Action
• Article 201 of the Constitution prescribes that
  any decision of a High Court shall, to the extent
  that it decides a question of law or is based
  upon or enunciates a principle of law, be binding
  on all courts subordinate to it. Accordingly, the
  Federal Board of Revenue should clarify that
  henceforth DRRA shall not undertake any audit of
  taxpayers sales tax and excise records.

9
EXPORT REFUNDS
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Apart from the list of supportive documents
  prescribed in Rule 38 of Sales Tax Rules 2006,
  the department requires the refund claimant to
  furnish records, returns, accounts, statements,
  summaries pertaining to his suppliers to cross
  match the payment of output tax. This has created
  the following problems
• The desired documents are not prescribed under
  the law or the rules
• Under the law, the supplier is not bound to
  furnish his returns, summaries and other
  statutory declarations to his buyer
• In certain cases, the department directly
  contacts the respective supplier to verify the
  genuineness of the disputed transaction however
  in other cases, the onus of verification is
  transferred upon the refund claimant himself.
• Recently, the Large Taxpayers Unit Karachi has
  discontinued the above refund verification
  mechanism which has resulted in 2 sets of
  practices prevailing in Regional Tax Office and
  Large Taxpayers Unit (LTU). The LTU now requires
  the refund claimants to get the invoice summary
  statements, sales tax returns, etc. of their
  suppliers verified / authenticated from their
  respective Collectorates, otherwise Bank
  Guarantees furnished by refund claimants may be
  encashed.
• Suggested Action
• To streamline the entire refund verification and
  sanctioning process, the FBR should device
  necessary mechanism for the whole country in the
  light of the Section 10 and Sales Tax Rules 2006
  thus ending practical hassles, liquidity problems
  for refund claimants and frivolous litigation
  pertaining to refunds.

10
REFUND ON BUILDING MATERIALS, STEEL, ETC
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• After the suppression of SRO 578(I)/98 dated 12
  June 1998 through SRO 490(I)/2004 dated 12 June
  2004, sales tax paid on building materials has
  become eligible for refund / adjustment purposes.
  However, the RTO has placed certain other
  conditions attached to the refund claim such as
  filing of Approved Building Plan, BOQ, Counter
  Confirmation from respective Trade Association,
  etc. Such requirements are not spelled out either
  in the statute or the rules. Besides, they are
  against the superior courts decisions. The LTU,
  like before, does not require such additional
  documents.
• Suggested Action
• In line with the statute and the related
  judgments of the superior courts, the said
  Standing Order may be withdrawn forthwith and
  refunds may be allowed on building materials
  without any exception.

11
REFUNDS UNDER SECTION 66
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Legal Position
• No refund of tax claimed to have been paid or
  over paid through inadvertence, error or
  misconception shall be allowed, unless the
  claim is made within one year of the date of
  payment
• Departmental Interpretation
• No refund of tax claimed ..shall be
  allowed, unless the claim is made within one year
  of the date of payment
• Suggested Action
• In line with an identical pronouncement by the
  High Court, the FBR should clarify that where the
  tax claimed as refund was not paid due to
  inadvertence, error or misconception, the time
  limit of 1 year will not be applicable.
  Accordingly, all claims not falling under the
  above, should be admissible and entertained
  without any time limit as already held by High
  Court. The Supreme Court has already held that no
  limitation of time can be placed upon filing and
  sanctioning refunds.

12
MULTIPLE AUDITS
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• The tax authorities conduct multiple audits of
  same tax period under different names, i.e.,
  investigative audit, desk audit, audit for
  abnormal profile, etc. Under section 25, the tax
  department may conduct audit of registered person
  only once a year. Also, the terms Desk Audit,
  Investigative Audit Abnormal Tax Profile have
  not been defined in the statute.
• Recently the Federal Tax Ombudsman (FTO) has
  also held that abnormal tax profile is not
  defined in the Law and thus no scrutiny may be
  made by the department on this account.
• Suggested Action
• All audits or scrutiny other than the usual
  audit prescribed under section 25 may be
  withdrawn.

13
RECORD KEEPING AUDIT
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• During the audit exercise, sometimes the tax
  authorities call for documents like Audited
  Accounts, Cost Audit Report, Minutes of BOD,
  Income Tax Records, etc which are not prescribed
  records in section 22 of the Act. In certain
  cases, cases have been established out of the
  information so sought and show cause notices
  issued to the taxpayers.
• Suggested Action
• The FBR and Federation of Pakistan Chamber of
  Commerce Industry (FPCCI) have already agreed
  upon records which may be sought by the tax
  administration during tax audit. This agreement
  was also made public vide FBRs letter dated 17
  November 2001. It is suggested that the suitable
  amendments made be made in section 22 of the Act
  by incorporating the above FBR letter as part of
  the statute.

14
TOLL MANUFACTURING
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• The amended definition of the term supply does
  not include Other Disposition as part of
  supply. Other Disposition was discussed in Para
  1(E) of Sales Tax General Order (STGO) No. 3/2004
  dated 12 June 2004 wherein the FBR had opined
  that return of goods by the vendor back to the
  principal tantamount to Other Disposition and
  accordingly liable to sales tax. Hence, it
  appears that Toll Manufacturing is out of the tax
  ambit.
• Suggested Action
• Since now toll manufacturing is out of supply,
  it is suggested that Part I(E) of above STGO may
  also be withdrawn to avoid potential problems for
  the taxpayers during audit.

15
WORK BACK ASSESSMENT
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• In many cases, the department creates tax
  demands based on work back method. Under the law,
  except in cases where the taxpayer fails to file
  the return, no officer can make a worked back
  assessment and create liabilities.
• Suggested Action
• The superior courts have held in numerous
  judgments that unless supply of taxable goods is
  established, no tax can be levied. The Supreme
  Court has also held that work back assessment
  under Rule 226 of (repealed) Central Excise Act
  1944 is illegal.
• It is, therefore, suggested FBR should clarify
  that except in case of section 11(5) read with
  Para D of STGO 3/2004, no assessment may be made
  on presumptive basis.

16
CONSUMPTION OF PROCURED GOODS VS. TAXABLE
ACTIVITY
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Prior to Finance Act 2008, the act of putting to
  private, business or non business use of goods
  acquired or manufactured in the course of
  business was treated as supply. Vide Finance
  Act 2008, goods acquired is out of the
  definition meaning thereby no sales tax is
  leviable on non business consumption of purchased
  goods. However, the present definition is in
  conflict with the term taxable activity which
  also includes anything done during commencement
  or termination of economic activity.
• Suggested Action
• Clause 2(33)(a) should be brought in harmony
  with section 2(35) to avoid unnecessary
  litigation on this account.

17
ACCOUNTING FOR REFUNDS
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• In recent cases, the tax authorities have
  started rejecting refund claims where such claims
  were not booked as receivable in the taxpayers
  audited accounts. In support of such contention,
  the tax authorities contend that non recording of
  refund as receivable from government tantamount
  that the sum of claimed was charged off in cost
  of sales thus becoming part of selling price
  which was ultimately recovered from the
  customers. Therefore, such claims were rejected
  under Section 3B of the Act.
• Suggested Action
• The above appears to be an attempt to override
  the explicit provisions of the Act which makes no
  distinction between corporate and non corporate
  taxpayers. In quite a few cases, because of the
  contingent nature of refunds due to
  interpretational / legal issues, the taxpayer
  could not book it as receivable in the accounts.
  This is the internationally accepted and
  practiced accounting convention. It is,
  therefore, suggested that refund cases may be
  examined only in the light of books required
  under section 22 of the Act and agreement reached
  between FBR and FPCCI.

18
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Legal Issues

19
VALUE OF SUPPLY
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• In terms of Federal Excise Notification
  655(I)/2007 dated 29 June 2007, Special Excise
  Duty (SED) is not taken into account for the
  purpose of computing value of supply under
  Sales Tax Act 1990. This exemption is incorrectly
  placed in Federal Excise Law instead of Sales Tax
  and thus lacks due intended legal support
• Suggested Action
• It is suggested that section 2(46)(a) of Sales
  Tax Act 1990 should be modified as follows
• value of supply means- in respect of taxable
  supply, the consideration in money including all
  Federal and Provincial duties except special
  excise duty levied under section 3A of Federal
  Excise Act 2005 and taxes, if any, which the
  supplier receives from the recipient for that
  supply excluding the amount of tax.

20
MARKET VALUES
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• In case where there is sufficient reason to
  believe that value of supply has not been
  declared correctly, the dispute is resolved by
  forming valuation committee comprising
  representative of business community and the tax
  department. Nevertheless, in most of the cases,
  the department continues to dispute valuation on
  the basis of available market price with
  adjudication orders passed without forming
  valuation committees.
• Suggested Action
• Identical to ADRC, a panel comprising of
  business community may be formed by FBR and all
  disputes regarding the value of supply may be
  referred to such committees under 2(46)(e).

21
TAXATION OF RETAILERS
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• A registered retailer is required to pay
  turnover tax on value of supplies specified in
  3rd Schedule of the Act on which the respective
  manufacturer had already discharged the entire
  tax liability.
• Further, 5(3) of Sales Tax Rules 2006 allows
  corporate buyer / income tax withholding agents
  to claim sales tax paid to retailers. This Sub
  Rule is in conflict with Section 2(28) and Rule 3
  whereby retailers are the persons supplying goods
  to general public for consumption purposes. Thus,
  according to the statute, no input tax becomes
  admissible to the buyer / end consumer.
• Suggested Action
• Double taxation on 3rd schedule items should be
  removed at retail stage. Further, Rule 5(3)
  should be amended keeping in view the ancillary
  specific provisions and the spirit of Retail
  Taxation.

22
AWARD OF STAY BY COLLECTOR (APPEALS)
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• With the removal of sub section 4 of section
  45B, the law now appears to be silent with
  respect to powers of Collector (Appeals) to grant
  stay against a departmental demand, subjoined at
  appeal stage.
• Suggested Action
• It is suggested that the power of Collector
  (Appeals) for grant of stay in sub judice cases
  may be restored. This suggestion is
  notwithstanding the dictim of superior courts
  whereby the authority empowered to grant ultimate
  relief is always empowered to grant interim
  relief as well.

23
SALES RETURN BEYOND 180 DAYS
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Section 9 of the Act read with rules thereof
  restricts self adjustment through credit debit
  note beyond 180 days, which is extendable to
  another 180 days only with prior approval from
  the Collector. The law does not cater return of
  goods, particularly food items, which carry
  expiry of a longer period than 1 years.
• Suggested Action
• In the present era where technology checks can
  be placed, as long as the registered person is
  able to prove the genuineness of original and
  revised transaction, no time limits may be
  imposed upon him under the rules for issuing
  credit and debit note or enjoying related tax
  credit / adjustment.

24
RECOVERY OF ADJUDGED TAX
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Section 48 read with Rule 71 empower initiation
  of recovery proceedings at the end of 30 days
  from the date of order in which government dues
  are adjudged against the taxpayer. On the other
  hand, section 45B allows the taxpayer to file an
  appeal with the Office of Collector (Appeals)
  within 30 days from the date of receipt of order.
  Thus, Rule 71 is in conflict with section 45B of
  the Act.
• Suggested Action
• Due to secretarial formalities, adjudicating
  orders are served to the taxpayer long after
  their pronouncements. It is, therefore, suggested
  that Recovery Rules may be amended and recovery
  proceedings may only be enforced after 30 days of
  service of order to the taxpayer. This amendment
  is also required in the best interest of natural
  justice.

25
REVISED RETURN
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Section 26(3) allows the registered person to
  file a revised return with the permission of the
  Collector to rectify any omission or wrong
  declaration made in his monthly tax return.
  However, there is no mechanism for revising the
  monthly special return, which is filed by 42
  sectors of the economy.
• Suggested Action
• It is suggested that necessary amendments may be
  made and reference of section 27 may also be
  incorporated in section 26(3) of the Act.

26
WASTAGE
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• There is no provision in the statute governing
  both visible and non visible wastage that occurs
  during manufacturing process. The audited
  accounts also do not separately disclose
  wastages rather the same is reported as part of
  stock consumed. Quite often, cases are
  established against the taxpayers on account of
  difference in stock figures which usually is due
  to the element of wastage.
• Suggested Action
• To address this critical issue, it is suggested
  that Industrial Notes may be drawn by the FBR in
  consultation with trade, industry and tax
  consultants encompassing business processes of
  significant sectors and standard ratios of
  wastage occurring during such processes.

27
INPUT TAX CREDIT ON FIXED ASSETS
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Under Section 8B, input tax attributed on fixed
  assets is adjustable in 12 equal monthly
  installments. However, the term fixed assets
  has not been defined in the statute.
• Capitalisation policy of businesses differs from
  each other. Especially in case of non corporate
  taxpayers, due to non availability of audited
  accounts, disputes may arise as to what
  constitutes fixed assets. Consequently, cases
  could be established where the taxpayer had
  claimed the entire sales tax in a single return
  instead of prorating it over 12 months time.
• Suggested Action
• The term fixed assets may be defined in the
  same fashion as plant and machinery is defined in
  the Customs Act 1969.

28
INPUT TAX ON GOODS DESTROYED
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Rule 23 of Sales Tax Rules 2006, disallows input
  tax credit in respect of goods destroyed being
  unfit for human consumption..
• Suggested Action
• Except for above change brought in vide Finance
  Act 2008, the legal position has been consistent
  for destruction of goods since 1990. Further, we
  understand input tax has been declared as vested
  right of the taxpayer under the main statute and
  the same cannot be taken away by subordinate
  legislation. It is suggested that the
  disallowance, being ultra vires of section 8 of
  the Act, may be withdrawn.

29
MISMATCHING OF PENAL INTEREST
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• A registered person can be penalized with
  default surcharge _at_18 p.a if he fails to pay off
  the tax liability by due date. On the other hand,
  failure of the department to pay off the due tax
  refunds in time only costs it 6 p.a
• Suggested Action
• Keeping in view the rate of inflation, cost of
  funds and above all natural justice, the
  interest on delayed refund may be enhanced to
  atleast 12 p.a thus compensating the taxpayers
  for the departmental delays / non compliances.

30
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Procedural Matters

31
APPORTIONMENT OF INPUT TAX ON EXPORTS

SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Tax attributed to exports and zero rated
  supplies is refundable to the registered person.
  However, the law does not prescribe any formula /
  method of proration of input tax between exports
  and local supplies.
• Suggested Action
• A formula / mechanism identical to the
  Apportionment of Input Tax Rules should be
  introduced in the statute. Else the exporter may
  be allowed to carry forward entire excess input
  tax to the next tax period without any exception.
  

32
AUDIT REPORT
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Upon completion of departmental audit, the audit
  report prepared by the auditors and reviewed and
  approved by the Additional Collector, is required
  to be sent to the registered person followed by
  an Audit Completion Certificate in the prescribed
  format. However, in practice, no such audit
  report is discussed or shared with the taxpayers.
  The department also does not issue Audit
  Completion Certificate and huge demands are
  created without proper compliance of the law.
• Suggested Action
• The taxpayer should be aware of the results of
  department audit. This would be not only in
  compliance with the legal framework but might
  also facilitate quick payment(s) of unpaid tax by
  the taxpayer alongwith reduced penalty under
  section 33.

33
VERIFICATION OF TRANSACTIONS
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Section 73 fails to address cases where payments
  are knocked off through contra book entries
  between buyer and sellers.
• The provision does not cater situations where
  payments become doubtful or eventually turns
  irrecoverable for the supplier
• The law does not take into account transactions
  where payments are made by creditors / guarantors
  / 3rd parties on behalf of the buyer.
• Suggested Action
• We understand that the basic intent of section
  73 has been to document the economic and business
  transactions. This objective may well be achieved
  within sophisticated accounting and corporate
  environment and the growing business realities.
  Thus, section 73 may be amended to cater the
  inter company (book) transactions and the issue
  of bad debts.

34
ALTERNATIVE DISPUTE RESOLUTION
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• The law does not provide a comprehensive
  framework for ADRCs. Resultantly, no concrete
  solution is available to the following problems
  confronting the mechanics of ADR
• Too centralized mechanism
• CBR holds powers to accept or reject the
  recommendations of ADRC without assigning any
  reason thereby wiping of the entire process of
  deliberations and efforts
• Powers of ADR have not been specified for
  instance, legally ADRC cannot order inspection of
  books of accounts of a 3rd party
• No provision exists requiring appellate forums to
  put the judicial proceedings in abeyance till the
  outcome of ADR
• Can documents exchanged / agreement reached at
  the ADR stage be put as evidence at any judicial
  proceedings ?
• Suggested Action
• A comprehensive ADR framework should be
  developed encompassing the extent and scope of
  both the Committees and FBR respectively. For
  this purpose, liaison may be made with Karachi
  Centre for Dispute Resolution, constituted with
  the assistance of International Finance
  Corporation (IFC) and Sindh High Court.

35
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• FEDERAL EXCISE

36
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Legal Issues

37
DUTY ADJUSTMENT
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Under section 6, FED is adjustable only if the
  registered person holds a valid proof to the
  effect that he has paid the price of goods
  purchased by him including FED and received the
  price of goods sold by him including FED through
  banking channels. The condition of payment and
  receipt is creating lot of problems for the
  taxpayers. On the other hand, SED is adjustable
  on payment basis.
• Suggested Action
• There is a need to bring harmony among the two
  duties. It is suggested that both FED and SED
  should be made adjustable on accrual / paid basis
  as per section 7 of Sales Tax Act 1990. Further
  the duty adjustment should not be made subject to
  receipt of sale proceeds and related duty.

38
BASIS OF DUTY ADJUSTMENT
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• FED paid on excisable goods, which are used
  directly as input goods for the manufacture of
  dutiable goods, is adjustable against the final
  liability. On the other hand, SED paid on
  industrial inputs is adjustable against the SED
  chargeable on the goods manufactured therefrom.
  The term industrial input has not been
  specified under the law.
• Suggested Action
• In the absence of any definition of industrial
  inputs, it could be construed to include
  everything consumed for the manufacturing /
  allied activity like spares, printing, stores,
  equipment, etc. In order to avoid litigation on
  this account, it is suggested the term
  industrial inputs may be defined in the law.

39
CREDIT DEBIT NOTE
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Identical to section 9 of Sales Tax Act 1990,
  Rule 14A also allows adjustment(s) in tax invoice
  or return for dutiable goods. However, the
  benefit of such Rule has not been extended to
  dutiable services.
• Suggested Action
• To bring harmony in application of duty
  provisions to both and services, it is suggested
  necessary amendments may be made in Rule 14A to
  include reference of dutiable goods and dutiable
  services.

40
SED DRAWBACK
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Under SRO 655(I)/2007 read with Federal Excise
  General Order (FEGO) 1 of 2008, in case of
  exports, the SED paid on purchases / import shall
  be paid to the exporter as drawback. However,
  since July 2007, no such drawback is paid to the
  exporters.
• Suggested Action
• It is suggested that necessary instructions may
  be passed onto field formations to process
  outstanding SED drawbacks. To expedite around 2
  years pending claims, it is also proposed that
  SED Drawback may be sanctioned to the large
  taxpayers upon submission of revolving bank
  guarantee..

41
MANDOTORY PAYMENT BEFORE FILING APPEAL
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Under Section 37, before preferring appeal
  before Office of Collector (Appeals) or Appellate
  Tribunal, a taxpayer is required to deposit the
  impugned duty demanded or penalty imposed in the
  appealable order. This mandatory compulsion is
  considered as a hindrance in the dispensation of
  justice.
• Suggested Action
• The identical provisions in Income Tax and Sales
  Tax have already been repealed. Therefore, it is
  suggested the same is also removed from the
  excise law.

42
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• Procedural Matters

43
DUTY ON FRANCHISE FEE / ROYALTY
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• In terms of Rule 43A(7), the franchisee is
  entitled to take credit of the duty on franchise
  fee, technical service or royalty so deducted by
  bank making remittance on his behalf. However,
  the tax return does not contain any column for
  such credit.
• Suggested Action
• Annexure E of the return may be amended and a
  column should be incorporated so that due credit
  may be availed by the franchisee for duty so
  deducted by banks.

44
SHEKHA MUFTI CHARTERED ACCOUNTANTS

• THANK YOU