Online reconciliation of input tax adjustment: FBR, provincial revenue authorities to develop new software

The Federal Board of Revenue (FBR) and provincial revenue authorities would co-ordinate for developing a new computer software for online reconciliation of input tax adjustments allowed by FBR/provinces. Sources told Business Recorder here on Tuesday that the issue of input tax adjustments was discussed during last meeting between Chairman FBR and chairmen Sindh Revenue Board (SRB), Punjab Revenue Board (PRA), Khyber Pakhtunkhwa Revenue Authority (KPRA) and Secretary Excise & Taxation, Khyber Pakhtunkhwa at the FBR House.
During the meeting, Chairman SRB pointed out that a sum of around Rs 1 billion was still outstanding against FBR in respect of provincial sales tax deposited directly with FBR. Chairman, FBR, emphasised that FBR had already sent its report to the Finance Division and SRB should take up the issue with Finance Division. FBR Chairman also directed FBR Inland Revenue (IR) Operations Wing to examine if anything in this regard was pending with FBR and, and the same needs to be expedited.
Chairman, KPRA, also raised similar issue in respect of sales tax on services deposited with FBR for July 2013. Chairman, FBR, observed that KPRA should first check if the share of the province from the collected amount had already been repatriated to the province.
The Member (IR-Operations) raised the issue relating to cross matching of invoices of services on which input tax credit is claimed. It has been decided that the DG Automation would be provided with relevant data by provincial revenue authorities to make arrangements for cross matching of invoices of services in the CREST on regular basis. PRAL, in co-ordination with provincial revenue authorities, should develop a module for online reconciliation of input tax adjustments allowed by FBR/ provinces, sources added.