Pakistan Industrial & Traders Associations Front (PIAF) Patron In-chief Mian Anjum Nisar has said that the issue of settlement of input tax adjustment on services between federal government and provincial governments has not been resolved yet and is causing undue worry and disturbance to the business community.
“Imposing this tax on the business community is quite wrong and illogical and unethical,” Mian Nisar said. “It will lead to dual taxation as indirect taxes paid to the provinces will not reduce the incidence of sales tax paid to the central government.” Moreover, he said, input tax adjustment will not be available if the supplier did not declare such supply in their return or did not pay the tax due as per the return.
Consequently, input tax will become inadmissible for the buyer only for the reason that the supplier of goods has not declared such supply in his return of sales tax or has not paid the tax due.
While meeting with the group of industrialists and traders, Mian Anjum Nisar said that Tax act section 2(14) (d) has been abolished in the federal budget 2016-17 in which adjustment was available for the manufacturing sector on provincial sales tax.
