Pakistan Post Foundation: FBR begins to verify taxable supplies

RECORDER REPORT

ISLAMABAD: The Federal Board of Revenue has started verification of the taxable supplies made by M/s Pakistan Post Foundation to various other government/semi-government departments and autonomous bodies during 2007-08 to 2011-12 to ascertain reasons for non-payment of tax due against such supplies.

In this connection, the FBR on Monday issued instructions to the Chief Commissioner Regional Tax Office (RTO) Islamabad to verify the tax payments against the supplies made by the said firm.

According to the FBR instructions, the Board has started the exercise for conducting chain audit of manufacturers and wholesale suppliers who have adjusted input tax in excess of the prescribed limit. During the exercise, the FBR has conducted audit of National Highway Authority.

The desk/digital audit of National Highway Authority carried out by the special monitoring team of FBR revealed that NHA procured taxable supplies for its official use mainly from M/s Pakistan Post Foundation during last two fiscal years i.e. 2010-11 and 2011-12.

It is also revealed that M/s Pakistan Post Foundation, a company owned by Pakistan Post Office, is involved in making taxable supplies to numerous other Government/ semi-Government departments and autonomous bodies that are under the administrative control of Federal/ Provincial Governments. However, surprisingly their tax profile indicates 'NIL' tax payment during 2007-08 and 2008-09, while very trivial tax payment during 2009-10, 2010-11 and 2011-12 (till April 2012), FBR said.

The position explained above warrants immediate action for verification with regard to taxable supplies made by the above named firm during the aforesaid tax period and reasons for non-payment of tax due against such supplies. In case of excess input tax credit, if claimed by the firm and resultantly NIL/little tax payment, deposit of input tax credit claimed by them may also be verified through chain audit of their respective suppliers for the aforesaid tax period.

The verification, as above, may kindly be completed on top priority and report in this regard be sent to the Board by June 10, 2012, positively, the FBR instructions added.