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POST REFUND AUDIT REPORT

IN RESPECT OF M/S INTERASIA TEXTILES, KARACHI


STRN: 11-00-1190-147-91
FOR THE TAX PERIODS OF REFUND SANCTIONED FROM JULY-2010 TO JUNE-2011
1. INTRODUCTION AND SCOPE OF THE AUDIT
This report pertains to the post refund audit (PRA) of sales tax refund claims for the tax periods of Sales Tax
refunds sanctioned during 1st July-2010 to 30th June-2011 in respect of M/s INTERASIA TEXTILES, Karachi having
Sales Tax Registration No. 11-00-1190-147-91 (hereinafter called as the claimant) which were sanctioned through
RMS/STARR under the provisions of section 10 of the Sales Tax Act, 1990 read with Sales Tax Rules, 2006. During
the PRA of the said claimant, it has been observed that the refund claimed amount relates to the input of Raw
Materials such as cotton, polythene bags, jute bags, cartons, cones, adhesive tapes, Chemicals, furnace oil, fuel oil,
lubricants, clearing & forwarding services, courier, advertising, utilities etc. It has also been observed that the refund
was sanctioned through RMS/STARR on these inputs and because of this reason, the refund claims of the above
mentioned tax periods were selected for Post Refund Audit (PRA). Hence, findings, if any, of the instant report are
restricted to the extent of the sanctioned refund claims for the above-mentioned tax period only.
1.1. Registration Particulars and Status
Sr.

Scope of Audit

Details

Name of the Claimant

M/s. INTERASIA TEXTILES.

Registered Address

Registration No.

11-00-1190-147-91

Principal Business Activity

Manufacture of other textiles N. E. C.

Category

Manufacturer / Importers / Exporter

Date of Registration in ST

16th September-2005

Status

Operative as on 24th February-2016

National Tax Number (NTN)

0258853-6

No.

Plot No. L-19C, Federal B Industrial Area, Block


22,., Karachi

1.2. The Reasons and Proceedings of the Audit


During the PRA of the claimant, it has been found that the refund claimed amounts relate to inputs of Raw
Material Packaging materials like jute bags, cartons, polythene bags, utilities like electricity and gas, Chemicals,
clearing & forwarding services, furnace/fuel oil & lubricants, stores, machinery, equipments, and spare parts etc.
Accordingly, the refund was sanctioned through RMS/STARR on these inputs and due to this reason, the refund
claims of the above mentioned tax periods have been selected for PRA with reference to section 3, 7, 8, 10, 23, 26

and 73 of the Sales Tax Act, 1990 read with the Sales Tax Refund Rules, 2006. The details of refund sanctioned
are as under:
1.3. Table showing Refund to Sale Ratio

Amount
Claimed

Amount
Sanctioned

Local Sales

Export Sales

Total Sales

Refund to
Sales Ratio

January-2009

150,871

33,176

298,744

46,689,159

46,987,903

0.070

February-2009

158,164

85,654

256,867

47,493,980

47,750,847

0.179

Tax Period

March-2009

393,112

27,429

232,356

38,726,157

38,958,513

0.070

April-2009

209,440

198,734

290,665

72,666,241

72,956,906

0.272

July-2009

322,217

320,256

378,208

42,023,110

42,401,318

0.755

August-2009

145,967

145,967

386,646

48,330,793

48,717,439

0.299

January-2010

1,167,480

1,149,310

174,836

49,953,200

50,128,036

2.292

February-2010

366,832

365,812

160,127

45,750,541

45,910,668

0.796

March-2010

473,306

470,282

151,576

43,307,364

43,458,940

1.082

April-2010

420,480

420,480

160,506

53,501,963

53,662,469

0.783

May-2010

244,747

244,747

114,897

32,827,825

32,942,722

0.742

June-2010

239,801

239,801

121,127

39,073,212

39,194,339

0.611

July-2010

408,646

399,807

130,553

43,517,958

43,648,511

0.915

August-2010

110,496

110,496

114,865

35,895,415

36,010,280

0.306

September-2010

235,209

235,209

67,056

19,158,866

19,225,922

1.223

October-2010

430,549

430,549

10,946,161

58,464,366

69,410,527

0.620

November-2010

249,348

249,348

94,456

26,987,445

27,081,901

0.920

December-2010

192,587

189,473

114,087

67,109,839

67,223,926

0.281

January-2011

326,496

323,225

114,322

63,512,460

63,626,782

0.508

February-2011

29,208

20,223

87,051

34,820,501

34,907,552

0.057

March-2011

90,151

90,150

56,477

14,119,369

14,175,846

0.635

April-2011

291,850

291,850

96,672

34,525,574

34,622,246

0.842

6,656,957

6,041,978

14,548,255

958,455,338

973,003,593

0.620

Total

1.4. The Reasons and Proceedings of the Audit


M/s. Maple Textile Mills, Karachi have been requested vide letter No. 1760 dated 04-11-2015 and subsequent
reminder # 2072 dated, 17-11-2015 for production of the requisite supporting documents for the tax periods of Sales
Tax refunds sanctioned during 1st July-2010 to 30th June-2011for PRA as per rule 26 A(3) of the Sales Tax Rules,
2006 dated 05-06-2006 specified vide SRO 555(I)/2006 dated 05-06-2006. In response to the afore-referred letter,
the claimant furnished the following record/documents:
1.
2.
3.
4.
5.
6.

Sales tax returns along with Annexure


Purchase records (Register/invoices/GDs)
Sales record (register/invoices/export documents)
Item-wise stock consumption statement
Proof of payments made and received as envisaged in Section 73 of the Sales Tax Act, 1990
List of Machinery.

Accordingly, the claimant has submitted the required documents for the tax periods of Sales Tax refunds
sanctioned during 1st July-2010 to 30th June-2011 and on the basis of these supporting documents, this PRA has
been conducted and subsequent post refund audit report has been compiled. The claimant is registered as an
importer / exporter of textile/fabric goods such as bed sheets & pillow covers etc under PCT Heading 5900 with the
Sales Tax Department since 16th September-2005. The claimant has made exports & local zero rated sales/supplies
of textile goods such as cotton flannel printed / dyed bed sheets sets to Johannesburg, South Africa. The claimant
has purchased various raw materials i.e., Cotton, Fuel/Furnace Oil & lubricants, Packaging materials, dyes and
chemicals, paper tape, utilities, services, fixed assets etc against these taxable inputs and has claimed refund.

2. PURCHASE REGISTER
The claimant is maintaining computerized purchase register as per instructions provided vide SRO 697(I)/96
dated 22-08-1996 read with section 22 and 24 of the Sales Tax Act, 1990 and it has been observed that all invoices
relating to input tax have been issued in the name of said claimant and has properly been accounted for in the said
purchase register. Input tax value as claimed in the monthly sales tax returns in subject tax periods found reconciled
with the purchase register. The details are as follows:
2.1. Statement of Input Tax

Local
Purchases
(zero
rated)

Local
Purchases
(taxable)

January-2009

30,259,215

February-2009
March-2009

Total
Input
Tax

Input Tax

Imports
(zero
rated)

Imports
(taxable)

Input Tax

926,790

150,871

150,871

31,804,657

970,578

158,164

158,164

23,694,902

2,370,043

393,112

393,112

April-2009

19,911,572

1,293,874

209,440

209,440

July-2009

26,335,396

1,961,420

322,217

322,217

August-2009

28,298,841

885,071

145,967

145,967

January-2010

20,575,077

7,216,658

1,167,480

1,167,480

February-2010

41,984,775

2,126,636

366,832

366,832

March-2010

38,900,456

2,835,786

473,306

473,306

April-2010

37,037,261

2,528,312

420,480

420,480

May-2010

22,748,288

1,418,106

244,747

244,747

June-2010

20,690,206

1,457,851

239,801

239,801

July-2010

11,915,856

2,206,187

408,646

408,646

August-2010

22,537,585

649,977

110,496

110,496

September-2010

42,508,746

1,262,878

235,209

235,209

October-2010

44,805,744

2,160,850

430,549

430,549

November-2010

27,006,561

1,396,750

249,348

249,348

December-2010

49,597,270

1,132,863

192,587

192,587

January-2011

29,419,754

1,709,244

326,496

326,496

February-2011

2,682,044

171,813

29,208

29,208

March-2011

14,824,205

530,300

90,151

90,151

April-2011

18,476,794

1,510,920

291,850

291,850

Total

606,015,205

38,722,907

6,656,957

6,656,957

Tax Period

During the said audited period, the claimant has purchased various items amounting to Rs 644,738,112/- and paid
Sales Tax Rs. 6,656,597/- against which it has claimed refund amounting to Rs.6,656,957/-.
2.3. Verification of Purchases/Input Tax
During the course of audit in respect of post sanction of sales tax refund claims, the verification in respect of
admissibility of input tax involved in the purchases made by the registered person/refund claimant for the relevant tax
periods, the verification of their non-zero rated suppliers. Active Taxpayers List (ATL) has been done through the
website of FBR. Following were the main suppliers of the instant taxpayer during the audited tax periods:

Sr.
No

Name of Supplier

STRN

ATL Status

Verification
Date

KIRAN CHEMICALS

1200280031564

Active

24.02.2016

THREE STAR ENTERPRISES

1100481914619

Active

24.02.2016

Marhaba Packages

1200480005219

Active

24.02.2016
24.02.2016

S.A.R.PACKAGES

1750481904828

Suspende
d w. e. f.
07.10.2013

HARIS PLASTIC FACTORY

1100390021646

Active

24.02.2016

DHL PAKISTAN (PRIVATE)


LIMITED

1200980800437

Active

24.02.2016

ANIS ENTERPRISE

0208481903182

Active

24.02.2016

AL-MADINA PLASTIC (SMC-PVT)


LTD

1104390000482

Active

24.02.2016

OLYMPIC AGENCIES

1200980513746

Active

24.02.2016

10

RASTGAR COMPANY
(PRIVATE) LIMITED

1221999922091

Active

24.02.2016

11

TRITEX COTTON MILLS LTD

0305520203955

Active

24.02.2016

12

NASIM TRADERS

1700481905255

Blacklisted
w. e. f.
03.07.2013

24.02.2016

13

GEMCO

1220999993537

Active

24.02.2016

14

BERKET CERAMICS

1100252300191

Active

24.02.2016

1100283600291

Active

24.02.2016

15

KHAWAJA ABDUL HAFIZ

16

ALLIBHAI MOTORS/HONDA
DRIVE IN HONDA QUAIDEEN

1700871101373

Active

24.02.2016

17

SKYNET WORLD WIDE


EXPRESS

1200980801428

Active

24.02.2016

1200390077173

Active

24.02.2016

18

SHEIKH KHAJOO BHAI & CO.

19
20
21
22
23
24
25
26
27

28

29
30
31
32
33
34
35
36
37
38
39
40
41

42

43

AHMED LACE WORKS (PVT)


LTD.
DEWAN TEXTILE MILLS LIMITED
NOORANI SPINNING
INDUSTRIES

S.N.TEXTILE MILLS (PVT)


LTD
NAGINA COTTON MILLS LIMITED
MADINA COTTON MILLS
AL-AHMED TEXTILE MILLS
(PVT) LTD
VISION CHEMICALS
FURQAN ENTERPRISES

MARHABA TRADERS

ASHRAF & COMPANY


SAQIB ENTERPRISES
GULISTAN TEXTILES MILLS
LIMITED
AL-AMEEN TRADING
CORPORATION (PRIVATE)
LIMITED
H.Y. TRADERS
MADINA ENTERPRISES
TECSTYLE GLOBIZ
AL-NOOR INTERNATIONAL
TEETEX INDUSTRIES
RAZA KNITTING INDUSTRY
HASHMANI TOWELS
FARAH ENTERPRISES
TULIP TOWEL INDUSTRIES
(PRIVATE) LIMITED

A.N ENTERPRISE

INTERNATIONAL TRADE LINKS

0206580800546

Active

24.02.2016

1200520501346

Active

24.02.2016

0302550500128

Active

24.02.2016

0307520501273

Active

24.02.2016

1206520501791

Active

24.02.2016

0303520200746

Active

24.02.2016

1200520554373

Active

24.02.2016

1700290000246

Active

24.02.2016

1712520503719

Active

24.02.2016

1712590036964

Blacklisted
w. e. f.
28.06.2005

24.02.2016

1201511100137

Active

24.02.2016

1100520507446

Active

24.02.2016

1206520500137

Active

24.02.2016

1100320405837

Active

24.02.2016

1100520515773

Active

24.02.2016

1100511118519

Active

24.02.2016

1200320007437

Active

24.02.2016

1100390003664

Active

24.02.2016

1100520862764

Active

24.02.2016

1100610383264

Active

24.02.2016

1100580245373

Active

24.02.2016

1100620080964

Active

24.02.2016

1700590003737

Active

24.02.2016

1700481908637

Suspende
d w. e. f.
25.07.2011

24.02.2016

1220999952946

Active

24.02.2016

44

AZGARD NINE LIMITED

0301520201346

Active

24.02.2016

45

SHAHID MUHAMMAD UMER


DOUBLING

1109520500182

Active

24.02.2016

46

GOLDEN TEXTILE MILLS


LIMITED

0305520211128

Active

24.02.2016

0302520902682

Active

24.02.2016

1200520501182

Active

24.02.2016

0307520503255

Active

24.02.2016

47
48
49

FAIZIZ TEXTILES
SURRIYA TEXTILE MILLS (PVT)
LTD
LIAQAT SPPINNING MILL

50

AL-KARAM TEXTILE MILLS


(PRIVATE) LIMITED

0204511100173

Active

24.02.2016

51

ALLAH WASAYA TEXTILE &


FINISHING MILLS LTD.

0407520200382

Active

24.02.2016

1200590742664

Active

24.02.2016

1121999913682

Active

24.02.2016

1120999915346

Active

24.02.2016

1107511100182

Active

24.02.2016

1200320005782

Active

24.02.2016

1100580201991

Active

24.02.2016

1100520854273

Active

24.02.2016

1120999921028

Active

24.02.2016

1200480007373

Active

24.02.2016

0201850700164

Active

24.02.2016

1100999998873

Active

24.02.2016

0307520502673

Active

24.02.2016

1712590046119

Active

24.02.2016

0506551100373

Active

24.02.2016

1100511114482

Active

24.02.2016

52
53
54
55
56
57
58
59
60
61
62
63
64
65
66

MUHAMMED USMAN
SHAHEEN TRADING
COMPANY
MOBIN BASHIR
GLOBE DYEING
NAEEM DYEING & BLEACHING
A ONE TEXTILE AND TOWEL
INDUSTRIES
Z.K. INDUSTRIES.
HASHAM IMPEX
PARRI TRADERS
EXIDE PAKISTAN LTD
SHOAIB ENTERPRISE
AL FATEH INDUSTRIES
S.AZIZ & SONS
A.J. TEXTILE MILL LTD,
A.L.U. INTERNATIONAL

67

STALLION TEXTILES (PVT.)


LTD.

1201620010082

Active

24.02.2016

68

YAHYA TEXTILE
INDUSTRIES

1100580206919

Active

24.02.2016

1100520507773

Active

24.02.2016

0301520200437

Suspende

24.02.2016

69
70

GULL ENTERPIRSES
DAR ES SALAAM TEXTILE MILLS
LIMITED

d w. e. f.
14.04.2015
71

A.Y. INTERNATIONAL

1100520511719

Active

24.02.2016

72

MAQBOOL USMAN FIBERS


(PVT) LTD

0407520180655

Suspende
d w. e. f.
30.06.2013

24.02.2016

73

GATRON INDUSTRIES
LIMITED.

0601520000182

Active

24.02.2016

1700380002055

Active

24.02.2016

1190999958373

Active

24.02.2016

1200320010482

Active

24.02.2016

0208481906491

Active

24.02.2016

0202760500182

Active

24.02.2016

1700271002891

Suspende
d w. e. f.
14.11.2007

24.02.2016

1100620072055

Active

24.02.2016

1700620009646

Active

24.02.2016

0305520506328

Active

24.02.2016

1100520511228

Active

24.02.2016

74
75
76
77
78

79

80
81
82
83

HAFIZ REHAN CHEMICALS


SAFEWAY TRADING
TAJ DYEING & BLEACHING
CORRUPACK
PAKISTAN CABLES LIMITED

AZAR ENTERPRISES

KARACHI TRADING CO
S. H. & CO.
BAJAJ ENTERPRISES
POLANI CORPORATION

84

A. M. Z. SPINNING & WEAVING


MILLS (PRIVATE) L

0101520500755

Active

24.02.2016

85

UNITED SPINNING MILLS (PVT)


LTD

0101520501173

Active

24.02.2016

1200320009746

Active

24.02.2016

1200999968337

Active

24.02.2016

1100630200537

Active

24.02.2016

1200520501428

Active

24.02.2016

1121999970764

Active

24.02.2016

1204999965573

Active

24.02.2016

1712380004582

Active

24.02.2016

1200480002573

Active

24.02.2016

1201580204755

Suspende
d w. e. f.

24.02.2016

86
87
88
89
90
91
92
93
94

ANUS DYEING
NOBEL ENTERPRISES
TERRY WORLD TEXTILES
DEWAN KHALID TEXTILES
MILLS LIMITED
PEOPLES TRADING COMPANY
M-E INDUSTRIES
RAIWIND CHEMICAL
INDUSTRIES (PVT) LIMITED
KOHINOOR TRADERS
T.H.ENTERPRISES

12.09.2003
95
96
97
98
99
100
101
102
103
104
105

106

107
108
109

ARAIN FIBRES LIMITED


GHOUS FIBRE MILLS
SADAF BROTHERS INDUSTRIES
ELAHI TRADING
CORPORATION
S.A FIBERS
SALMAN AGENCIES
ISLAND TEXTILE MILLS LIMITED
SHAHEEN INDUSTRIES
RAFIQ SPINNING MILLS
(PVT) LTD
HUMERA TRADERS
INDUS DYEING & MFG. CO.
LTD.

AL-NOOR IMPEX

AMIN IMPEX
IMTIAZ TEXTILE MILLS
FIMCOTEX INDUSTRIES

0402520202491

Active

24.02.2016

0407551100264

Active

24.02.2016

1200580295355

Active

24.02.2016

1700085369914

Active

24.02.2016

0302520505446

Active

24.02.2016

1100520509919

Active

24.02.2016

1206520502037

Active

24.02.2016

1100520814264

Active

24.02.2016

0802520500446

Active

24.02.2016

1121999919219

Active

24.02.2016

1100520500364

Active

24.02.2016

1750620000628

Blacklisted
w. e. f.
27.09.2013

24.02.2016

1100320401128

Active

24.02.2016

0410520500228

Active

24.02.2016

0101520500837

Active

24.02.2016

110

EHSAN YOUNAS &


BROTHERS SPINNING MILL

0304520505755

Active

24.02.2016

111

AWAIS QURNI SPINNING


MILLS(PVT)LTD

0409520201019

Active

24.02.2016

0208481903346

Active

24.02.2016

1200540201655

Suspende
d w. e. f.
16.03.2016

24.02.2016

1102999965191

Active

24.02.2016

1100580700128

Active

24.02.2016

0302520503464

Active

24.02.2016

1712630200746

Active

24.02.2016

0801284700128

Active

24.02.2016

112

113

114
115
116
117
118

NEW SOOFI BOX

YARNTEX ENTERPRISES

AAA POLY TRADERS


GIGI INDUSTRIES (PVT.)
LTD.
ASIA SPINNING MILLS
GREAT INTERNATIONAL
SITARA PEROXIDE LIMITED

2.4. Cross Match: Purchase Register and Sales Tax Returns


Purchase invoices were checked with purchase register and were found tallied. While checking the
purchase invoices, special attention was given to the following points:
1.
2.
3.
4.
5.

The name, address, and registration number of the aforementioned claimant were mentioned on the sales tax
invoices in accordance with Section 23 of the Sales Tax Act, 1990.
The goods mentioned in the sales tax invoices are of the nature in which the business is carried on by the
claimant.
No purchases were made from the black listed/suspected units as per ATL available on FBR website as on 2810-2015.
Checked that aforementioned claimant has not claimed input tax adjustment on the goods returned by him to the
suppliers as provided u/s 9 of the Sales Tax Act, 1990.
As regard the consumption of building material, the claimant has submitted an undertaking regarding self
consumption of this building material along with supporting documents as per Standing Order 08/2007 dated 2311-2007.

2.5. Compliance of Section 73 of the Sales Tax Act, 1990


It was glimpsed that payments of amounts for transaction of/and exceeding the value Rs.50,000/- have been
made by the claimant through the banking channel in favor of his respective suppliers and that these transaction were
also reflected in the given bank statement and party-wise ledger accounts of the claimant. It was accordingly
observed that compliance of Section 73 of the Sales Tax Act, 1990 was made by the claimant, cross verification of
these documents were checked on random basis and no discrepancy was found on this account. Moreover,
payments of exports proceeds were also reflected in the bank statement of the refund claimant.
3. SALES/SUPPLIES
The claimant is maintaining computerized supplies register as per instructions provided vide SRO 697(I)/96
dated 22-08-1996 read with section 22 and 24 of the Sales Tax Act, 1990. The supplies register was checked
randomly and it was observed that all invoices relating to the input tax have been issued properly and were properly
been accounted for in the said supplies register.
3.1. Scrutiny of the Sales Record
During the subject tax periods, it was revealed that the claimant made local supplies and exports to the tune
of Rs.39,446,307/- and Rs. 143,520,225/- respectively- Detail is as under:
3.2. Table of Local Sales/Exports

4. BANK
submitted
the

Tax
Period

Local
Sales

Export Sales

Total
Sales

January-2009

298,744

46,689,159

46,987,903

February-2009

256,867

47,493,980

47,750,847

March-2009

232,356

38,726,157

38,958,513

April-2009

290,665

72,666,241

72,956,906

July-2009

378,208

42,023,110

42,401,318

August-2009
386,646
Sr. No.
Bank Name
January-2010
174,836
1 February-2010
SONERI BANK160,127
LIMITED
receipts
have
and found
reflected
The
the Sales
complied
mode and
5. STOCK

March-2010

151,576

April-2010

160,506

May-2010

114,897

June-2010

121,127

July-2010

130,553

August-2010
September-2010
October-2010

The
claimant
has
the account statements of
following bank account:

48,330,793
48,717,439
Branch
Account No.
49,953,200
50,128,036
Main
Branch Karachi 45,910,668 02011548977
45,750,541
The
payments
and
43,307,364
43,458,940
against transactions of
53,501,963
53,662,469
Rs.50,000/- and above
been randomly checked
32,827,825
32,942,722
that transactions are duly
39,073,212
39,194,339
in the bank statements.
provisions of section 73 of
43,517,958
43,648,511
Tax Act, 1990 are being
35,895,415
36,010,280
with as per prescribed
19,158,866
19,225,922
manner.
58,464,366
69,410,527

114,865
67,056
10,946,161

November-2010

94,456

26,987,445

27,081,901

December-2010

114,087

67,109,839

67,223,926

January-2011

114,322

63,512,460

63,626,782

February-2011

87,051

34,820,501

34,907,552

March-2011

56,477

14,119,369

14,175,846

April-2011

96,672

34,525,574

34,622,246

14,548,255

958,455,338

973,003,593

Total

STATEMENT

RECONCILIATION/CONSUMPTION STATEMENT
M/s. Maple Textile Mills (Pvt.) Ltd, Karachi has provided the item-wise stock statements for the relevant
months in which stock consumption (items-wise) has been duly reflected and this consumption has been reconciled
with the sales tax refund sanctioned to it, due to limited scope of audit, stock consumption has been left for
comprehensive audit. Summary of item-wise consumption of stock is as under:
Stock Consumption Statement

Month
s
January2009
February2009
March2009

P/M

BM

UTILITI
ES

SERVIC
ES

CHEMICA
LS

FUEL/FURN
ACE OIL &
LUBRICANT
S

S&S

Total

April-2009
July-2009
August2009
January2010
February2010
March2010
April-2010
May-2010
June-2010
July-2010
August2010
September2010
October2010
November2010
December2010
January2011
February2011
March2011
April-2011

TOTAL
The above mentioned tabulated extracts of total consumption of stock in manufacturing of taxable/zero rated
activity shows that major consumption of input tax was related to Packaging materials such as polythene bags,
cartons, cones, tapes, inlay cards etc (42.55%), Utility like Gas (38.80%), Fuel/Furnace oil & lubricants (7.11%)
Services like clearing & forwarding etc (6.22%), Chemicals (2.07%), Stores & Spares such as machinery parts and
equipments (1.78%) and Building materials such as cement & steel (1.47%)

5.2. Reconciliation of Refund Claimed and Stock Consumption Statement


During the scrutiny of stock consumption statement provided by the claimant, it was observed that the
claimant has claimed total consumption of stocks (input tax) in the manufacturing of textile/fabric products i.e. cotton /
polyester flannel/dyed bed sheet sets amounting to Rs./- whereas he has been sanctioned sales tax refund of Rs. /-.
The details are as under:

Refund Claimed & Stock Consumption Statement

Tax periods

Refund claimed as
per Sales Tax Return

January-2009
February-2009
March-2009
April-2009
July-2009
August-2009
January-2010
February-2010
March-2010
April-2010
May-2010
June-2010
July-2010
August-2010
September-2010
October-2010
November-2010
December-2010
January-2011
February-2011
March-2011
April-2011

Stock
Consumption
as per stock
statement

150,871
158,164
393,112
209,440
322,217
145,967
1,167,480
366,832
473,306
420,480
244,747
239,801
408,646
110,496
235,209
430,549
249,348
192,587
326,496
29,208
90,151
291,850

Refund
Sanctioned
Amount
33,176
85,654
27,429
198,734
320,256
145,967
1,149,310
365,812
470,282
420,480
244,747
239,801
399,807
110,496
235,209
430,549
249,348
189,473
323,225
20,223
90,150
291,850

6,656,957
TOTAL

6,041,978

During the scrutiny of RMS/STARR refund processing analysis sheets and


note sheets has been observed that M/s INTERASIA TEXTILES, Karachi has claimed the
refund of Rs.3,039,930/- out of which an amount of Rs. /- was sanctioned and an amount of
Rs./- was deferred/rejected/carry forward due to various objections on suppliers, subject to
further verification. Detail is as under:

5.4. REFUND RECONCILIATION STATEMENT

Tax Periods

Refund
Claimed

Refund
Sanctioned

Deferred
Claims

January-2009
February-2009

150,871
158,164

33,716
12,448
73,206

33,176
85,654

Rejected
Claims

Carry
Forward

Claim No
T110109100401
T110209100112

RPO
No.
802220
0
801764
9
802044

RPO date
7/6/2011
25/3/2011
9/5/2011

3
T110309100229
March-2009

393,112

27,429

27,429

April-2009

209,440

198,734

198,734

July-2009

322,217

320,256

320,256

August-2009

145,967

145,967

January-2010

1,167,480

145,967
842,159
307,150

1,149,310

February-2010

366,832

365,812

365,812

March-2010

473,306

470,282

470,282

420,480

325,480
95,000

244,747

211,377
33,370

T110409100423
T110709100228

T110210100287
T110310100101

112111

13/10/2010

T110410100083

111440
802141
9
111388
802142
0
800814
1
802044
4
800814
7
801896
4
801431
8
801648
1
801648
2
801645
2
801925
4
802043
6
802043
7
802218
5

23/9/2010
25/5/2011

420,480

244,747
T110610100444

June-2010

239,801

205,555
34,246

239,801

July-2010

408,646

399,807

399,807

August-2010

110,496

110,496

110,496

September-2010

235,209

235,209

235,209

October-2010

430,549

430,549

430,549

November-2010

249,348

249,348

249,348

December-2010

192,587

189,473

189,473

January-2011

326,496

323,225

323,225

February-2011

29,208

20,223

20,223

March-2011

90,151

90,150

90,150

April-2011

291,850

291,850

291,850

6,656,957

6,041,978

T110710100203
T110810100066
T110910100394
T111010100508
T111110100375
T111210100208
T110111100336
T110211100277
T110311100054
T110411100108

TOTAL

6.

---

----

----

----

CONCLUSION/AUDIT OBSERVATION/RECOMMENDATION/FINDINGS

6/10/2010

24/9/2010
25/5/2011
13/10/2010

T110110100423

T110510100178
May-2010

25/3/2011

800889
0
802091
4
111520
8021411
112112

T110809100131

April-2010

801765
0
111858

As a result of the post sanction audit of sales tax refund claims of the instant registered person for the tax
periods of this report, no discrepancy was found during the process of digital desk audit of post sanction of
sales tax refund claims the verification in respect of admissibility of input tax involved in the purchases made
by the registered person/refund claimant during the subject tax periods; the verification/cross matching of
their input tax has been verified through FBR e-portal (SMART/ONE STARR), their suppliers sales tax
returns cum payment challans of the subject tax periods and Active Taxpayers List.

8/11/2010
18/5/2011

23/9/2010
25/5/2011
19/10/2010
9/5/2011

19/10/2010
14/4/2011
20/1/2011
5/3/2011
5/3/2011
3/3/2011
20/4/2011
9/5/2011
9/5/2011
7/6/2011

----

The audit is conducted within the limits of Audit Parameters.

The claimant was found an Active Taxpayer.

All of the suppliers/buyers were checked with active taxpayers list (ATL) of FBR and none of them has been
found in that list. The claimant status as per taxpayer profile is operative.

The sales tax refund claims for the audited periods of Sales Tax refunds sanctioned during 1 st July-2010 to
30th June-2011 which is about 1.379% as compare to zero rated supplies which were satisfactory.

The payments and receipts against transactions of Rs.50, 000/- and above have been randomly checked
and found that these were duly reflected in the bank statements. The provisions of section 73 of the Sales
Tax Act, 1990 are being complied with as per prescribed mode and manner.

The claimant claimed his refund against the invoices issued by M/s. FUTURE TECH LUBRICANTS bearing
STR # 1750271001719 in the tax periods of January-2011 & March-2011 amounting of Rs. 26,323/- which is
recoverable alongwith default surcharge as the said supplier was BLACKLISTED w. e. f. 31.03.2007.

The sales tax record / documents submitted by the claimant were checked and it has been observed that the
record is maintained as per provisions of section 22, 23, 26 & 73 of the Sales Tax Act, 1990. The sales tax
returns were also checked with the sales and purchases registers and summary statements of input tax and
output tax on test basis and were found tallied.

If approved, the record submitted by the claimant is returned back after completion / approval of audit report.

Prepared by:

Signatures: ______________________________
Name: SYED UMAIR RAZA
Designation: Auditor Inland Revenue
Place of Posting: Zone-I, RTO, Karachi
Date:

24-02-2016

Reviewed by:

Signatures: ______________________________
Name: ZULFIQAR ALI KHOKHAR
Designation: Incharge PRA Cell
Place of Posting: Zone-I, RTO, Karachi
Date: 24-02-2016

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