FBR starts blocking NTNs of service providers

RECORDER REPORT

KARACHI: The Federal Board of Revenue (FBR), instead of resolving procedural issues with Sindh Revenue Board (SRB) over tax on services, has started blocking NTNs of service providers - customs clearing agents and others, creating difficulties for them in filing of Goods Declarations (GDs) for consignments’ clearance.

Absence of integrated system between both revenue authorities over procedural issues for book adjustments of tax on services has put the service providers – clearing agents and others in an uncertain state as they are facing NTN blockage over non-filing of ‘Nil Returns’ at FBR’s e-portal despite paying taxes to provincial revenue authority, sources said here on Monday.

Nadeem Kamil, General Secretary Karachi Customs Agents Association also confirmed that their members were unable to file GDs, due to NTN blockage by FBR over non-filing of ‘Nil Return’ in the e-portal.

He said that after 18th amendment, the service providers were asked to pay tax on services to SRB but the FBR instead of facilitating taxpayers restricted to submit ‘Nil Return’ to avoid considering themselves as non-filer in its system.

He said that FBR shall integrate with SRB to facilitate taxpayers from cumbersome and dual taxation procedures, which would also help authorities to issue clarifications time and again. Nadeem further said that matter was taken up by the KCAA with the competent authorities of FBR and SRB to resolve this issue, amicably and termed the FBR act as unjustified as customs agents were regularly paying tax on services to the SRB. He also pointed out that service providers could not file Nil Return in FBR portal for a long period despite their NTN remain active in FBR portal whereas in case of non-filing of sales tax return to SRB for a short period of 1-3 month the NTN became non active at FBR portal that would create problems for them in filing of GDs in WeBOC System.

He also requested the FBR and SRB to integrate both portals and tax paid to SRB may be updated on FBR portal automatically. He urged the board to withdraw notices issued to the service providers and activate their NTNs on priority basis.