SHC Waives FBR’s Affidavit Requirement for Filing September Sales Tax Returns
The Sindh High Court (SHC) has directed the Federal Board of Revenue (FBR) to ensure that the sales tax returns of registered persons for September 2024 are filed without the submission of affidavits by chief financial officers or authorized representatives.
The SHC issued this order on Friday, allowing for the facilitation of sales tax returns without the need for the affidavit until the next hearing date.
ALSO READ
Salaried Class Paid 1,550% More Tax Than Retailers in July-September
According to the SHC order, the grievance of the petitioners (companies) is that they were required to swear and sign an affidavit alongside the filing of sales tax returns. The petitioners’ lawyers argued that such an affidavit is beyond the rules and provisions of the Sales Tax Act 1990 and that petitioners cannot affirm and take responsibility for the acts of their suppliers at the time of filing sales tax returns.
During the hearing, the councils presented a press release issued by the FBR on October 17, 2024, stating that the requirement for filing an affidavit for sales tax returns for September 2024 has been dispensed with.
SHC Order Details:
- Notice has been issued to the FBR and the Deputy Attorney General for November 1, 2024.
- The FBR, responding to trade bodies’ requests, decided:
- Filing of an affidavit will not be required for the tax period of September 2024.
- Alternative proposals from stakeholders will be received until October 31 to curb falsified sales tax returns.
- The particulars of the affidavit may be modified where valid concerns exist.
ALSO READ
FBR Withdraws Condition of Filing Affidavits by CFOs
The FBR emphasized that no new legal obligation arises from the “affidavit” requirement. Registered taxpayers must be aware that declaring fake or flying invoices and suppressing sales is a cognizable offense under the sales tax law. All registered persons should exercise extreme caution while filing returns to avoid pecuniary and criminal liabilities under section 33 of the Sales Tax Act, 1990.
