Professional Documents
Culture Documents
Scope of Audit
Details
Registered Address
Registration No.
11-00-1190-147-91
Category
Date of Registration in ST
16th September-2005
Status
0258853-6
No.
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
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
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
1100390021646
Active
24.02.2016
1200980800437
Active
24.02.2016
ANIS ENTERPRISE
0208481903182
Active
24.02.2016
1104390000482
Active
24.02.2016
OLYMPIC AGENCIES
1200980513746
Active
24.02.2016
10
RASTGAR COMPANY
(PRIVATE) LIMITED
1221999922091
Active
24.02.2016
11
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
16
ALLIBHAI MOTORS/HONDA
DRIVE IN HONDA QUAIDEEN
1700871101373
Active
24.02.2016
17
1200980801428
Active
24.02.2016
1200390077173
Active
24.02.2016
18
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
MARHABA TRADERS
A.N ENTERPRISE
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
0301520201346
Active
24.02.2016
45
1109520500182
Active
24.02.2016
46
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
0204511100173
Active
24.02.2016
51
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
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
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
AZAR ENTERPRISES
KARACHI TRADING CO
S. H. & CO.
BAJAJ ENTERPRISES
POLANI CORPORATION
84
0101520500755
Active
24.02.2016
85
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
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
0304520505755
Active
24.02.2016
111
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
YARNTEX ENTERPRISES
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.
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%)
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
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
----
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