Tax Audit

Businesses are required to maintain proper records and invoices for audit purposes. If a business is selected for audit, the FBR will review the submitted returns and supporting documents to ensure compliance. Importance of Filing a Sales Tax Return:

• Legal Requirement: Filing sales tax returns is a legal obligation for all registered persons conducting taxable transactions under the Sales Tax Act, 1990.
• Compliance with Tax Laws: Timely filing ensures that businesses comply with the taxation system and avoid penalties.
• Maintaining Business Records: Filing helps keep accurate business records and facilitates transparency in operations.
• Refund and Adjustment: Businesses can adjust their input tax or claim refunds for excess tax paid, which helps with cash flow management.