The Central Board of Revenue (CBR) has made it mandatory for the taxpayers and withholding tax agents to specify the national tax numbers (NTNs) on the new computerised payment receipts (CPR) at banks, from April 1.
Official sources told Business Recorder on Saturday that the Board has launched the automated tax deposit system, in collaboration with the State Bank of Pakistan (SBP) and National Bank of Pakistan (NBP), to facilitate tax payment through computerised receipts.
The banks would henceforth not accept withholding tax challan with incomplete particulars of the taxpayers and their "payees" ie from whom tax is being deducted including employees, agents, vendors and suppliers. In this regard, valid NTNs would be required in cases of companies/associations of persons (AOPs) and NTN or computerised national identity card number (CNIC) in the cases of individuals.
The old tax deposit form or challan, an essential document allowing tax credit and issuance of refunds, has been replaced with a comprehensive 'Computerised Payment Receipt' (CPR), to be issued by the bank.
To expedite payment of tax credit to the taxpayers pertaining to taxes withheld under various withholding tax provisions of the Income Tax Ordinance 2001 as well as tax paid directly by the taxpayers, verification of payments for timely issuance of refunds is required under automation project.
Now the taxpayers would be required to submit complete details particularly name, CNIC or valid NTN of the payee, type of payment and amount against which tax is being withheld etc. In case of individuals, they have the option to submit CNIC if they do not have NTN.
However, the withholding tax agents with small number of 'payees', can prepare paper-based challans with maximum of 10 taxpayers in one challan, for depositing tax through a single cheque/DD/PO/cash etc. For large withholding tax agents, a computer-based data format has been designed for providing the details to the bank in electronic format, whereby any number of taxpayers can be included against a single payment challan pertaining to one type of tax payment.
No single or multiple withholding tax challans will be accepted with incomplete particulars of the taxpayers and their agents, vendors, suppliers etc from April 1.
The regional tax offices have directly contacted the taxpayers and withholding tax agents to assist them in fulfilling their tax deposit related obligations under the automation project.
Officials said that the scheme would enable taxpayers to understand the spirit of the automated revenue collection system, focal point of which is facilitation of the taxpayers minimising chances of filing incorrect/deficient statements/claims for tax credits and timely payment of refunds to the taxpayers. The CBR has issued instructions to the Regional Tax Offices (RTOs) to facilitate the taxpayers, should any assistance they need.
The Board has sought co-operation of all stakeholders for the success of the program, as it would help build a new tax culture in the country, based on mutual respect and trust.
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