Recovery of Arrears and Refund Chapter- 08
(6) The refund of excess input tax under this rule shall not be claimed where the same has already been
claimed or paid under any other notification issued by the F ederal Government or the Board.
Responsibility of the claimant (Rule 35)
The automated processing of refund claims shall be conducted on the basis of supportive documents if
required, and data on prescribed electronic format provided by the claimant. The claimant shall be
responsible for any mis-declaration or submission of incorrect information and shall be liable for penal
action besides recovery of the amount erroneously refunded along with default surcharge under the
relevant provisions of the Act.
Post-sanction audit of refund claims (Rule 36)
After disposing of the refund claim, the officer-in-charge shall forward the relevant file to the Post Refund
Audit Division for post-sanction audit and scrutiny; which shall, inter alia include verification of input tax
payment by respective suppliers and compliance of section 73 of the Act:
Provided that scrutiny of the refund claims processed or sanctioned after the 30th June, 2014 shall be
carried out on the basis of risk-based selection through computerized Post Refund Scrutiny (PRS):
Provided further that where the Commissioner Inland Revenue has reason to believe, on the basis of some
information, pre-determined criteria or otherwise, that a registered person, whose refund claim was
processed or sanctioned after the 30th June, 2014, has been paid refund which was not admissible, he
may direct through order in writing to conduct manual post-refund scrutiny of such claim.
The officer-in-charge of Post Refund Audit Division shall send his findings to the concerned Refund Division
for further necessary action, as required under the law.
Action on inadmissible claims (Rule 37)
Where the claim or any part thereof is found inadmissible 120[or unverified], the officer-in-charge shall, at
the time of issuing RPO, issue a notice requiring the claimant to show cause as to why the claim or as the
case may be, part thereof should not be rejected and as to why the claimant should not be proceeded
against under the relevant provisions of the Act.
Supportive documents (Rule 38)
(1) In case of refund claims processed through STARR channel, the claimant shall provide any or all of
the following supportive documents, as the officer-incharge may require, namely:--
(a) input tax invoices or as the case may be, goods declaration for import in respect of which refund is
being Claimed;(b) output tax invoices and summary of invoices for local zero-rated goods;(c) goods declaration for export;
(d) copy of House and Master bill of lading and airway bill or as the case may be, railway receipt in
token of verification of the goods taken out of Pakistan; and
(e) any other statement as deemed necessary for processing of the refund claim.(2) In addition to the documents specified in sub-rule (I), a commercial exporter shall submit Bank credit
advice issued by the concerned Bank and copy of the duty drawback order, if issued by the Customs
Authorities.
(3) Where the refund claim is filed under section 66 of the Act, the claimant shall submit an application for
refund indicating his name, address, National Tax Number, the amount of sales tax refund claimed and
reasons for seeking such refund along with following documents, namely:--
(a) input tax invoices in respect of which refund is claimed;
(b) proof of payment of input tax claimed as refund; and
(c) copy of the relevant order on the basis of which refund is claimed.