The upcoming Conference of Commissioners Withholding Zones would analyse performance of withholding agents particularly banks and power distribution companies (DISCOs) to improve collection from such agents in second half of 2015-16. It is learnt that the conference would now be held on February 15.
Sources said that the RTOs would share monitoring mechanism for banks; TMAs; government departments/FTN holders; district accounts offices; DISCOs; cotton ginners; educational institutes; contractors and private sector salaries. The number of withholding agents falling in each category would be mentioned by the RTOs along with the strategy adopted to monitor each of the above categories.
In the conference of Commissioner withholding zones, each RTO will inform how much resources (physical and human) have been allocated to the Withholding Zones 'WHZ' (viz-a-viz other Zones) for an effective performance. The conference would discuss the steps taken so far for the strengthening of the Mufasil WHT Units/MACs, to tap the unexplored potential of withholding taxes. Specific character or the main characteristic relevant to RTO would be highlighte such as RTOs having jurisdiction over DISCOs, banks and salaries etc. The conference would carry out the evaluation of RTO specific Tax withholding potential.
The conference would discuss the stock inventory of WHT Agents and related issues. In the first section, FBR's requirement is that each field formation should have a category wise complete information/stock inventory of its withholding agents. Action taken for the broadening withholding tax base in the wake of new provision introduced.
The conference would discuss action taken for the facilitation of the withholding agents. A discussion would be carried out the major WHT Areas/Sections & Sub sections. RTOs would mention the major revenue spinners in comparative terms. The RTOs would submit the main reasons for negative/unsatisfactory trends in the above areas (if any) and remedial measures taken so far to arrest the said trends. RTOs would also discuss any special monitoring/enforcement/audit measure which has impacted positively in the aforesaid areas.
It would also discuss monitoring of tax withholding with reference to filer/non-filer of the tax returns and monitoring of withholding sections where rates have been enhanced. RTOs would share the strategy to recover the difference of tax between filers/non-filers and action taken for the enforcement of withholding statements from the non-complaint withholding Agents.
Within the area of withholding Tax Audit, the FBR expect that what concerted efforts RTOs have been under taken to develop a withholding Audit Plan for the remaining two quarters by identifying the areas where there is leakage of revenue through non-deduction, short deduction or late deposit of the tax.

Copyright Business Recorder, 2016

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