Exemption of Default Surcharge and Penalties

The Federal Govt. has allowed an amnesty scheme for exemption of default surcharge and penalties provided that the outstanding arrears is paid before 30th June 2011. This amnesty is however, not available in cases of fraudulent refunds and tax frauds.

Further Update

Federal Board of revenue has issued a clarification vide its letter C. No. 1/28-STB/2011/93306-R dated 28.06.2011 in respect of SRO 648(I)/2011 dated 25.06.2011. Board has clarified that amount paid under this notification shall also be refunded to the tax-payer, if the same becomes due in consequences of any decision or judgment at a later stage. This clarification was required to be issued for a uniform treatment in respect of outstanding amount of sales tax as the provision of refund was incorporated in amnesty schemes dated 25.06.2011 announced for Customs and Income tax vide SRO 646(I)/2011 and SRO 647(I)/2011 respectively.