FBR starts audit to check WHT collection

Special teams seize records of municipal administrations.

SIALKOT: Special teams of Federal Board of Revenue (FBR) have started an audit of 21 Tehsil Municipal Administrations (TMAs) and 18 Registration Branches in Gujranwala seizing all of the concerned official records.

According to a senior FBR official, the FBR teams were conducting special audit of these TMAs and registration branches to ascertain whether they had deposited their taxes as per the rules and regulations or not.

The officials added that FBR used to collect five per cent withholding tax of the total amount from all the contractors, suppliers and construction companies against the total value of contracts of development schemes allocated by all federal and provincial government departments.

The ratio of this withholding tax was increased to 6.5 per cent by the government for the ongoing fiscal year. The FBR is expecting to get an additional income of Rs100 million from these TMAs and Registration Branches as withholding tax.

FBR officials revealed that if a person gets his property, amounting to Rs3 million, registered, he would have to pay one per cent capital value tax. If the said person was not a tax payer, then he would have to deposit double the ratio.

Meanwhile, as many as 21 TMAs in Gujranwala Division have yet recovered 27 per cent of the taxes against their fixed official recovery target of Rs364.5 million during the first five months of the current fiscal year.

These TMAs could recover only Rs97 million, which is 27 per cent of the total amount. TMA Daska remained on top in this recovery target, as it recovered Rs24.6 million against its target of Rs14.5 million during this period.

Published in The Express Tribune, December 20^th, 2014.

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