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Tax Refunds

Tax Refunds

Apply for tax refunds TIMELY & CORRECTLY! Free up your cash stuck in tax refunds for Business.

Taxpayer's sometimes did not plan their tax payments smartly and end up with large tax refunds in their returns. Applying for and processing of tax refunds is an exhaustive and lengthy process and taxpayer's have to face desk audits and refund verification procedures. So, taxpayer's need to prepare tax forecast for coming years and devise a very clear strategy to carry on this process effectively and efficiently. Contact us for assistance. Contact us for assistance

A taxpayer who has paid tax in excess of the amount which the taxpayer is properly chargeable under the prevailing tax laws may apply to the taxation authorities for a refund of the excess.

Income Tax Refunds
> Refund can be only claimed if the person has filed their Income Tax Return electronically. A manual Return does not entitle you to a refund.
> The refund amount should be clearly reflected in your Income Tax Return in Iris. > Refund resulting from the Income Tax Return can be claimed by filing a separate application in Iris. To check the status of your application, please visit your relevant Regional Tax Office (RTO).
> The refund can also be claimed later on after submitting your Income Tax Return, but within two years from the date of filling of return (date of assessment) or from the date on which the tax was paid, whichever is later.
> However, persons filing Tax Return for Tax year after the specified due date will not be entitled to refund during the period the person is not included in ATL and Income Tax authorities will not incur any liability of compensation for delayed refund for the period the person is not appearing in ATL and such period shall not be counted for the purpose of computing additional payment for delayed refund.

If the input tax paid by a registered person on taxable purchases made during a tax period exceeds the output tax on account of zero rated local supplies or export made during that tax period, the excess amount of input tax shall be refunded to the registered person not later than forty five days of filing of refund claim in such manner and subject to such conditions as the board may, by a notification in the official Gazette specify.
Refund of sales tax paid as input tax can be claimed by the following registered persons in the respective situations:
> Registered manufacturer- cum-exporters and commercial exporters who zero rate all or part of their supplies under section 4 of the Act.
> Registered persons who acquire tax paid inputs for use thereof in the manufacture of goods chargeable to sales tax at the rate of zero percent under the Act or a notification issued there-under.
> Registered persons claiming refund of the excess amount of input tax which could not be consumed within three months.
> Registered persons who acquire tax paid inputs used in the export of goods , local supply of which is exempt under the Act or any notification issued there under.
> Refund can also be claimed if an amount of sales tax is paid inadvertently or by mistake.
> Refund may also be claimed if an amount is paid on demand of the department, but subsequently the demand is set aside by any competent authority, Tribunal or Court.
> Monthly sales tax return filed by a claimant shall be treated as a refund claim once all the supportive documents including the requisite data in the format or software has been received.
> No refund claim shall be entertained if the claimant fails to furnish the claim on the prescribed software along with the supportive documents within sixty days of the filing of return.

The refund claimant shall submit to the Refund Division of the concerned Collectorate, RTO or Large Taxpayer Unit (LTU) , as the case may be, the refund claim in computer diskette in the prescribed format or software along-with the following documents, namely:-.
> Input tax invoices or as the case may be, goods declaration for import in respect of which refund is being claimed; > Output tax invoices and summary of invoices for local zero rated goods. > Goods declaration for export (quadruplicate copy) indicating Mate Receipt number with date or airway bill or railway receipt or postal receipt besides the examination report endorsed on the reverse side thereof by the customs officers; in case of claims by persons other than manufacturer-cum-exporter of goods zero-rated in a notification issued under section 4 of the Act.
> Provided that in case of imports or exports processed through WeBOC, submission of goods declaration shall not be required and cases shall be processed by cross- matching of the declarations with the data available in the system.
> Copy of House and Master bill of lading and airway bill or as the case may be, railway receipt in token or verification of the goods taken out of Pakistan; and
> Statement of the tax paid inputs, in respect of which refund is claimed by the claimants other than the manufacturers of the goods zero-rated for supplies.
> In addition to the documents specified above, a commercial exporter shall submit bank credit advice issued by the concerned bank and copy of the duty drawback order, if issued by the customs authorities.
> Where the refund claim is filed under section 66 of the Act, the claimant shall submit an application for refund indicating his name, address, registration number, the amount of sales tax refund claimed and reasons for seeking such refund along-with following documents, namely:.
> Input tax invoices in respect of which refund is claimed; > Proof of payment of input tax claimed as refund; and > Copy of the relevant order on the basis of which refund is claimed. > The refund claimed under section 66 of the Act shall be sanctioned after verifying that no adjustment or refund of input tax has been claimed earlier and that the goods have been duly accounted for in the inventory records and the invoices claimed are validated by the CREST (Computerized Risk – Based Evaluation of Sales Tax) System.

Refund Process

Step Process
1 File all your returns electronically
2 Tax refund figure shall appear on e-returns filed
3 Apply to the tax authorities for refund within due period specified in tax laws
4 Furnish underlying documents to the satisfaction of the authorities
5 Tax authorities after conducting relevant proceedings will process the refunds