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  • Dec 1st, 2018
  • Comments Off on GST recovery: FBR seizes accounts of FAW Motors
Federal Board of Revenue (FBR) has attached the bank accounts of FAW Motors (Pvt) Ltd for the recovery of sales tax amounting to Rs 239.56 million, it was learnt here on Friday. According to sources, the sales tax amounting to Rs 239.56 million was recoverable from M/s Al Haj FAW Motors (Pvt) Ltd as the said liability had so far not been deposited in the government treasury, despite opportunities.

Therefore, the board in exercise of the powers conferred under section 48 (1)(b) & (ca) of the Sales Tax Act, 1990 read with rule 71 (2) (d) of the Sales Tax Rules 2006 attached all six bank accounts of the company till the amount of government dues are recovered in full.

Replying to a question, sources said that the said company was given an opportunity to pay partial payment of Rs 100 million immediately in order to detach its bank accounts and restore its suspended imports while rest of the remaining Rs 139.56 million would be deposited in the national kitty by December 15, 2018.

However, the company kept insisting the board to pay government dues in full by mid of next month, they said and added that if Rs 100 million was paid on December 2, 2018 (Monday), the company would remain unable to detach all bank accounts and restore suspended imports at least till December 3, 2018.

When contacted, Muhammad Rafiq CFO, FAW Motors confirmed the attachment of company's bank accounts, saying that it was done due to misunderstanding. He said that they had requested FBR to make installments for due payments but the formal application in this regard was not submitted timely due to personal issues of the company's consultant that led the said action of the board. Moreover, he said that they had now discussed the issue with concerned commission of Inland Revenue, who verbally made three installments (December, March and June) to pay the said liability.

Copyright Business Recorder, 2018


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