MTBA seeks smooth functioning of IRIS to avoid any loss of invoices of input tax
MULTAN: Multan Tax Bar Association (MTBA) demanded Chairman Federal Board of Revenue for the rectification of IRIS to avoid any loss of invoices of input tax if draft of Sales tax returns once has been deleted due to any reason.
It was stated on the basis of various representations of the Members of the Multan Tax Bar Association, and executive Body raised a concerning issue that has been affecting taxpayers drastically by absolving legitimate Input Tax. In IRIS there is a significant problem regarding the loss of invoices and input tax when the process of draft sales tax return is deleted due to any reason whatsoever the taxpayer feels, after once claiming input tax in draft Annexure-A of return before submission.
Multan Tax Bar Association raised invoices and their related input tax play a critical role in the tax assessment process, serving as supporting documents for the claimed input tax. However, it has been observed that when a taxpayer prepares a draft sales tax return and subsequently delete it due to any reason whatsoever, all the relevant invoices attached to that draft return are lost.
This situation has created a considerable inconvenience for taxpayers and has led to unwarranted loss of input tax, imposition of penalties and rising of disputes & litigations with the tax authorities.
In other words, when a taxpayer claimed the invoices in Sales Tax Return and due to any reason, draft sales tax return be deleted and re-open the process thereafter for fresh input of record, the previously sales tax invoices claimed in draft Annex-A remain disappeared and showed in invoice management system that these are earlier be claimed.
So, registered persons forced to submit the sales tax return without claiming the legitimate input tax after payment of tax due, with the expectation that same invoices and input tax will be available in subsequent month (which are allowed under the law to be claimed in subsequent six Tax Periods) but the IRIS, in subsequent month, those left invoices don’t make available and IRIS software surprisingly disallowed the same amount in Annexure-A of the Sales Tax Return due to mismatch of invoice management system and data of submitted previous month sales tax return.
The loss of invoices and input tax is a matter of grave concern which affecting created right, as it directly affects the accuracy and transparency of the tax reporting system. It is essential to ensure the integrity and preservation of input tax, as they form the basis for tax assessments and enable taxpayers to exercise their rights to claim input tax legitimately. Losing these crucial documents can result in financial losses for businesses and may erode taxpayers’ trust in the taxation system.
Multan Tax Bar Association understood that IRIS was implemented with the intention of enhancing efficiency and streamlining tax-related processes. However, the current flaw in the system, where the deletion of a draft return leads to the loss of invoices and input tax, creates unnecessary challenges for taxpayers and tax professionals.
In light of the above, Multan Tax Bar Association requests your immediate attention to this matter. We urge the Federal Board of Revenue to take necessary measures to address this crucial issue and implement safeguards to prevent the loss of invoices in such circumstances.