Muhammad Hamza Asif

20191-26266

Taxation Assignment

Ans1) The act done by Mr. A's workers will lead to a suspension of registration as
under section 21(2) of the Act.

Ans 2) In this case Mr Ali is advised to file an application for temporary registration
as per rule 5(a). The board allows temporary registration as a manufacturer for a
period of sixty days when a manufacturer requests for this registration prior to
importing machinery to be installed by him.

Ans 3) If Mr.A and Mr.C are purchasing goods from Mr.B who has been black listed
by the board and such transactions come into the knowledge of Fbr then the
registration of such person may be suspended by the Commissioner through the
system, without prior notice, pending further inquiry.

Ans 4) The board will evaluate the reasons behind the high score.The Commissioner
may suspend/black list a registered person if satisfied that he/she has issued fake
invoices, evaded tax or committed tax fraud.

Ans 5) Yes it is legal. Sales registration of a registered person who does not file
sales tax return for six consecutive months shall be suspended through the system
without any notice. In this case Aslam Group of companies have not filed tax returns
for 5 consecutive months and hence their registration should not have been
canceled. In case they don't file a tax return for 6 consecutive months then only their
registration should be cancelled .