SHC Waives FBR’s Affidavit Requirement for Filing September Sales Tax Returns

Sindh High Court (SHC) has directed the Federal Board of Revenue (FBR) to ensure that sales tax returns of registered persons for September 2024 are filed without submission of affidavits by the chief financial officers/authorized representatives. In this regard, the SHC has issued an order on Friday. According to the SHC order, till the next date of the hearing, the respondent shall ensure that the sales tax returns of the petitioners for September 2024 are facilitated and filed without filing the affidavit in question. The SHC order stated that in all those petitions the grievance of the petitioners (companies) is that they have been requested to swear and sign an affidavit along with filing of sales tax returns. The lawyers on behalf of petitioners submitted before the court that prescribing such an affidavit is beyond the rules and provisions of the Sales Tax Act 1990 whereas petitioners have been asked to affirm and take responsibility for the acts of their suppliers, which at the time of filing of sales tax returns, they cannot do. However, during the hearing, councils have placed on record a press release issued by the FBR on October 17, 2024, and submitted that for the present purposes, the FBR has dispensed with the filing of an affidavit insofar as sales tax returns for September 2024 are concerned. Let notice be issued to the FBR as well as the Deputy Attorney General for November 1, 2024, SHC said. The FBR had said on request of trade bodies and in order to take all stakeholders in confidence, it has been decided that: However, it is again emphasized that no new legal obligation arises out of the “affidavit” and that the registered taxpayers should always be cognizant of the fact that declaration of fake or flying invoices and suppression of sale is a cognizable offense under the sales tax law and all registered persons need to exercise extreme caution while filing returns in order to avoid pecuniary and criminal liabilities under section 33 of the Sales Tax Act, 1990, FBR warned companies.