Sindh Revenue Board to seal businesses not on active taxpayers list

KARACHI: Sindh Revenue Board (SRB) has been empowered to seal businesses of persons not on the active taxpayers list (ATL).

Sources in the SRB told PKRevenue.com that the Sindh government has authorized the provincial revenue authority to take action against non-compliant businessmen through invoking provisions related to sealing business premises.

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The sources said that the Sindh Assembly recently passed the Sind Sales Tax on Services (Amendment) Act which introduced many changes to the main law.

A section 54B has been added to the Sindh Sales Tax on Service Act, which empowered the SRB to seal the business premises.

According to the Section: “If an officer of the SRB, not below the rank of a Commissioner, is satisfied that any person:

(a) is liable to be registered under this Act but is not actually registered in terms of the provisions of Section 24; or

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(b) is not an active taxpayer in terms of the provisions of clause (1A) of Section 2; or

(c) is constantly non-compliant with the provisions of this act or the rules made thereunder,

he may, by an order in writing, direct that the business premises of that person be sealed for a period not exceeding four months after giving a notice in writing:

Provided that when the cause of such sealing, as aforesaid, has ceased to exist, such officer of the SRB shall, through an order in writing, direct the de-sealing of the sealed premises.”

Prior to the latest amendment, the Sindh government already authorized the SRB to post an officer to business premises under Section 54 of the Act.

Section 54. Posting of an officer of the SRB to business premises.– (1) Subject to such conditions and restrictions, as it deems fit to impose, the Board may post an officer of the SRB to the premises of a registered person or class of such persons to monitor the provision of services by such registered person or persons.

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(2) Notwithstanding anything contained in sub-section (1), if a Commissioner SRB, on the basis of material evidence, has reasonable cause to believe that a registered person is involved in evasion of sales tax or tax fraud, he may, by recording the reason in writing, post an officer of the SRB to the premises of such registered person to monitor provision of services by such person.

(3) The person, to whose premises an officer of the SRB is posted under this section, shall provide, on his own cost, all facilities to meet the departmental requirements of such posting as may be determined by the Board or the Commissioner SRB.

Explanation: The powers of the Board or the Commissioner SRB, under this section, are independent of the provisions of section 53.

Section 54A. Monitoring or tracking by electronic or other means.–(1) Subject to such conditions, restrictions and procedure, as it may deem fit to impose or specify, the Board may, by notification in the official Gazette, specify any registered person or class of registered persons or any of the services or class of services in respect of which monitoring or tracking of provision of service or services may be implemented through electronic or other means as may be prescribed.

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(2) The Board may, in the prescribed manner, devise and implement an electronic system for monitoring and capturing the transactions recorded or the invoices issued by a registered person or a class of registered persons or a service or services or class of services, and transferring the information, obtained by such monitoring or capturing of transactions or invoices, to the computer systems of the Board on real time basis or otherwise.

(3) From such date as may be prescribed by the Board, the persons providing or rendering taxable services shall compulsorily use such electronic means or systems, including fiscal cash registers, as may be specified or prescribed by the Board, for issuance of tax invoice under the e-invoicing system.

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