In order to streamline the payment of refund claims and to initiate enforcement measures to minimise the risk of inadmissible refund claims, a system-based Post Refund Analysis Cell (PRAC) has been established at the FBR to ensure validity of refunds issued through “FASTER” and the “ERS” systems. The functions of the PRAC shall include to identify the cases of inadmissible refunds and to analyse the cases of inadmissible/excess refund claims and in particular, cases where there are suspicions of refund claimed on the strength of fake/flying invoices; refund claimed on inadmissible inputs including building materials, paints, wires and cables, vehicles and other such items which are restricted under the provisions of Section 8 of the Sales Tax Act, 1990; falsification of documents with the intent to deliberately disguise the nature of transaction; collusion amongst taxpayers to avail the bogus refunds.
2/10/2020