Islamabad: The FBR has decided to re-inforce its resources on monitoring of Withholding Taxes. The Tax Reform Coordination Groups was also apprised of the campaign being launched for this purpose during its meeting held in FBR on 1st May, 2012.
The Income Tax and Sales Tax laws provide the prescribed persons to withhold the tax at the time of payments on account of salary, contracts, interest, dividend, services rendered, payment to non-residents, commission, telephone bills/cards, utility bills and property rent etc. The tax deducted is to be deposited in the State Bank of Pakistan/National Bank of Pakistan.
A large number of such prescribed persons/withholding agents do not fully comply with the provisions relating to withholding taxes leading to delay in deposit of tax deducted and non-filing of statements through electronic mode on the web portal of FBR.
Since the Withholding tax constitutes a major source of revenue, the FBR has geared up its efforts during last 2 months of current financial year. Strict monitoring of defaulters would entail punitive action against those withholding agents who failed to meet their obligations.
The Chief Commissioners have also been advised to be vigilant in enforcement of Withholding taxes regime and initiate timely action against the defaulting withholding agents. Actions liable to be taken include imposition of penalty for non deduction, delay in depositing the deducted tax and non filing of monthly statements.
A Special campaign has been launched by the FATE Wing of FBR to educate the Withholding agents through print and electronic media. FBR is working in cooperation with of the Federal and Provincial Governments, Attached Departments, Companies, AOPs, Foreign Missions and those Others to detect defaulters to take legal action and prosecution in cases of default.
For more information, contact:
Federal Board of Revenue (FBR)
Tel: +9251 920 8407