All
 

 

Just in:  

You are here: Home»Business & Economy»Pakistan»SRB urges FBR to transfer sales tax amount

SRB urges FBR to transfer sales tax amount

Sindh Revenue Board (SRB) has asked the Federal Board of Revenue (FBR) to transfer sales tax of SRB-registered service providers withheld by FBR-registered taxpayers and deposited it inadvertently/incorrectly with FBR through their monthly returns.

Sources told Business Recorder here on Friday that the SRB has written a letter to the Ministry of Finance and Federal Board of Revenue (FBR) to take necessary action for transfer of the said amount from FBR to the SRB's relevant head of account.

According to the details, SRB officials had also convened a meeting with the Advisor to Prime Minister on Finance, Finance Secretary and tax authorities here at Ministry of Finance to discuss the issue on account of transfer of amount of SRB-registered service providers withheld by FBR- registered taxpayers and deposited inadvertently/incorrectly with FBR.

Accordingly, SRB submitted that if the firm/company is registered with the Federal Board of Revenue under the Sales Tax Act, 1990, and receives services from SRB-registered services providers, it is required to comply with the Sindh Sales Tax Special Procedure (Withholding) Rules, 2011 and, in such a case; the FBR-prescribed Sales Tax Special Procedures (Withhol-ding) Rules, issued vide SRO.660 (1)2007 dated June 30, 2007 (FBR Withholding Rules) and amendments made thereafter, will not be applicable in relation to the services, including the services of advertisement, received from SRB-registered service providers.

The amount of tax withheld by any service recipient (irrespective of his location and the FBR's Large Taxpayer Unit/Regional Tax Office in which such service recipient is assessed) is an amount of Sindh sales tax and has to be e-deposited in Sindh Government's head of account "B-02384" in the manner prescribed in the Sindh Sales Tax Special Procedure (Withholding) Rules, 2011. Such information has duly been provided to all of the service recipients from SRB-registered service providers. However, the comp1iance status on account of the FBR-registered taxpayers has remained dismal. They withheld the amounts of SRB-registered service providers and inadvertently/incorrectly deposited the same with FBR through their regular returns. Resultantly, Government of Sindh is deprived of huge amounts of SRB-registered service providers, SRB said.

In order to establish the claim on the basis of the information provided by M/s Pral, Sindh Revenue Board constituted a team of three members including Commissioner-I, DC(HQ)/Withholding, and DC(Audit) with the task to check the returns submitted by three leading withholding agents ie top multinational companies. The committee checked the returns of the said three major withholding agents relating to the tax periods September 2011, October 2011 and December 2011 respectively.

The committee studied three returns in details and matched/tallied the amounts mentioned against row number 21 of FBR tax returns with the amounts cited (Domestic Purchase Invoices) with the total amount payable and computerised payment receipts (CPRs) thereto. After due scrutiny of three returns and matching the data extracted thereby with the data provided by PRAL, it has been established that an amount of Rs 2,480,675,052 of SRB-registered service providers have duly been withheld and deposited by FBR registered taxpayers inadvertently/incorrectly with FBR.

The detailed statement of above amounts (soft as well as hard version) reflecting the serial number, FBR return filer NTN, name of the return filer, tax period, SRB supplier NTN, SRB Taxpayer/Supplier business name, Supplies value, sales tax and withheld sales tax amount has also been communicated by the SRB to the FBR, sources said. The SRB has requested the Chairman Federal Board of Revenue to take necessary action on account of transfer of Rs 2,480,675,052, sources added.

Copyright Business Recorder, 2013



 



 
Index Closing Chg%
Arrow DJIA 16,408.54 0.10
Arrow Nasdaq 4,095.52 0.23
Arrow S&P 1,864.85 0.14
Arrow FTSE 6,625.25 0.62
Arrow DAX 9,409.71 0.99
Arrow CAC-40 4,431.81 0.59
Arrow Nikkei 14,516.27 0.68
Arrow H.Seng 22,760.24 0.28
Arrow Sensex 22,628.84 1.58





where to buy

cheap wedding dresses

online - weddingdresstrend.com

Buy cheap Nike Mercurials cleats at mercurialscleats.com
cheap wedding dresses on SiteSteer.com - Best Online Wedding Store


Banking Review 2013


Buy direct from

China free shipping trade platform

Annual2012/13
Foreign Debt $60.9bn
Per Cap Income $1,368
GDP Growth 3.6%
Average CPI 7.5%
MonthlyFebruary
Trade Balance $-1.433 bln
Exports $2.167 bln
Imports $3.600 bln
WeeklyApril 14, 2014
Reserves $9.713 bln