The procedure stipulates that the manufacturers, dealers, distributors and wholesalers, while preparing the adjustment note, will ensure that it contains names and sales tax registration number of the applicant and bears the current address, name, designation of the authorised person and operative phone number and e-mail address, if any.
The copies of sales tax return and summary statement of purchase invoices and sale invoices/goods declaration of the relevant tax period must be attached with the adjustment note. The adjustment note, complete in all respects, for a particular tax period, shall be submitted by or before 15th of the following month. For this purpose, a drop-box facility will be available at the Taxpayers Facilitation Division (TFD) at Sales Tax House, Karachi, during office hours from 9 am to 4 pm on working days. The acknowledgement for the receipt of the adjustment note collected through the drop box shall be sent during the (following) next 24 hours by courier or e-mail. The facility to deposit adjustment note shall also be available at the counter set up for the purpose at the Sales Tax House.
Under this procedure, the adjustment note will undergo necessary scrutiny and processing at the Assessment and Processing (A&P) Division of the Collectorate. Where needed, the deputy collector A&P may seek further clarification and information from the applicant or his suppliers, buyers or from other collectorates. The exercise shall be completed in the minimum possible time but certainly within five days of the receipt of the note, barring very exceptional cases requiring greater details than already available, or in cases calling for a more thorough analysis.
ISSUANCE OF ADJUSTMENT ADVICE:
Until such time as a software programme is put in place to electronically verify and match tax returns and invoice summaries and automatically generate adjustment advice after due verification under the security criteria provided by such software programme, a provisional adjustment advice shall be issued to the applicant, subject to the post-verification by the software programme, after it is operative.
The procedure provides that for a case, prima facie liable to rejection, show-cause notice shall be issued to the applicant by the deputy collector A&P and an opportunity for hearing shall be provided to him. If, after the hearing, the official remains unsatisfied as to the genuineness of the input, tax claimed he shall pass an appealable order in the case.
Adjustment advice shall be issued and dispatched to the applicant at his registered business address through courier. This process shall be completed within ten days, barring exceptional cases mentioned earlier.
In terms of Board's clarification issued vide circular no 3(4) dated August 6, the facility of SRO 666 dated June 30 shall also be available to eligible registered manufacturers for their returns filed by 15-07-2005 for the tax period of June 2005, if so requested.
While deciding such cases it shall be ensured that the carry-forward balance shown in the tax return for the tax period June 2005 was not adjusted against any output tax liability or was not claimed as refund in the tax return relating to the month of July 2005.