ISLAMABAD (July 04 2003) : The Central Board of Revenue (CBR) has directed all collectorates of sales tax to conduct desk audit of ghee/cooking oil units showing abnormal variation in sale-purchase ratio.
The CBR has also dispatched unrealistic input/output sales tax data of suspected ghee/cooking oil units to their respective associations for correction.
Sources said here on Thursday that the CBR has temporarily suspended physical verification or raids on suspected ghee units, but it does not mean that the authorities have also stopped audit of these units.
The CBR would carry out audit of both the ghee and cooking oil units on the basis of computer generated profiles on purchase value, input tax, sales value, output tax, sales purchase ratio, O/I ratio, export value, refund claim and refund paid for this purpose.
The authorities have given an opportunity to the ghee industry for self-correction.
The units have been given deadline of one month to correct their record and modify returns.
Sources pointed out that all the ghee and cooking oil units use almost the same raw materials/inputs then why there is such a huge variation in the input/output ratio of each unit.
The CBR has compiled comparative charts of input/output ratio of different ghee units.
It is strange to note that there is an extraordinary variation in the input/output data of some units, which need correction.
The CBR has also given sales tax data of ghee/cooking oil units to their associations for correction.
The industry has assured the department that it would comply with the instructions of the Board, sources added.
