Steel units: Instructions issued for correct tax filing

Business Recorder reported that the Federal Board of Revenue has instructed steel melters, re-rollers and composite units to request online approval from the Chief Commissioners Inland Revenue for the electricity units they consumed. Such approval lets these taxpayers work out their correct sales tax liability before filing returns. The instructions were issued to field formations on Wednesday.

These units are required to use Annex-K of the return, as set out in the Thirteenth Schedule of the Sales Tax Act, 1990. The form populates itself after power distributors submit Annex-C, but taxpayers have struggled when DISCOs have not declared supplies or filed late. To address this, a new interface lets the CCIRs record electricity units after checking the month's bills.

Taxpayers must now apply online through the IRIS system to the relevant CCIR within the statutory period, providing the necessary details. After verifying records, the CCIR can approve the units online, and they will be pulled automatically into Annex-K. This allows taxpayers to calculate their correct liability and file the sales tax return accordingly.