25Act this week
Access to records and sales tax audit
A notice under section 25 of the Sales Tax Act requires you to produce your sales tax records for audit of a specified period.
Sales Tax Act 1990Time you have
As stated on the notice, commonly 15 days to produce records.
If you ignore it
An assessment under section 11 follows on the department's own figures, with penalty and default surcharge.
Why you got it
Why this arrived
- Input tax claimed does not match supplier declarations
- A supplier in your chain was blacklisted or suspended
- Declared sales appear low against your purchases or utility consumption
What to do
What to do now
- Reconcile purchases, sales and input tax claimed for the period, invoice by invoice
- Verify the active status of every supplier whose input you claimed
- Produce records in an organised set, an unstructured bundle invites more queries
Documents
What to gather
- Sales tax returns and annexures for the period
- Purchase and sales invoices
- Stock records and production data
- Bank statements showing payment against invoices
Send us the notice before the deadline
Photograph every page and send it on WhatsApp. We read it the same day and tell you the real exposure, not the worst case. Our principal is a licensed Income Tax Practitioner and can be authorised on your IRIS account to reply and appear for you.
0335 1358871 · Monday to Saturday, 11:00 am to 7:00 pm (PKT)