CPR paid on immovable properties in ICT: Revised e-procedure to enable taxpayers to carry out corrections

ISLAMABAD: The Federal Board of Revenue (FBR) has allowed the taxpayers to correct/revise Capital Value Tax (CVT) computerised payment receipt (CPR) only in respect of the CPR paid on immovable property situated within the territorial limits of the Islamabad Capital Territory.

The FBR has issued an addendum to the e-procedure for correction of the CPR of income tax, sales tax, and the federal excise duty.

The FBR had issued the procedure on December 30, 2019, to revise the e-procedure for correction of the CPR of income tax, sales tax, and federal excise duty.

Now, the FBR has added some new clauses to the said procedure.

Under the new clauses, the FED and CVT (correction of the CVT CPR shall only be allowed in respect of the CPR paid on immovable property situated within the territorial limits of the Islamabad Capital Territory.

Secondly, the Heads of Accounts (HAM) shall not be changed in the CPR except for the CVT paid on the immovable property situated within the territorial limits of the Islamabad Capital Territory.

The e-procedure for correction in the CPR was updated in IRIS software and following e-procedure will be followed for the correction in CPR (income tax, sales tax and FED).

The scope of changes shall be restricted to change of name, address, NTN/CNIC; change in tax year/tax period and change in payment code/payment section.

Online application to such effect will be submitted through IRIS software using taxpayer's own login.

The said online application will be placed in the "Inbox" of the concerned chief commissioner having jurisdiction over the case of such taxpayer.

Scanned copies of the following documents will also be uploaded in the system for evidence including (i) a copy of such CPR, (ii) in case of mistake made by withholding agent, a letter from withholding agent and affidavit from the taxpayer on stamp paper that amendment may be made in CPR, (iii) and for correction of NTN/CNIC in CPR, affidavit from the person on whose name the payment has been deposited mistakenly.

The chief commissioner shall designate an officer in CCIR office for such purposes.

On receipt of above mentioned e-application along with scanned copies of documents in the "inbox," such designated officer shall process the case.

Before approval, it shall be ensured through system that the CPR has not previously been utilised against any payment due.

However, it shall not bar correction to the extent of particulars of withholder in utilised withholding CPR only.

After due system verification such change(s) shall be made in FBR e-system "RECAP" to the relevant CPR.

The chief commissioner shall also ensure that applications are disposed of within 15 days from the receipt of complete documents.

Shortcoming, if any, may also be communicated to the taxpayer through system generated letter.

The designated officer shall provide reasons in writing/or rejecting any application/or correction in CPR.

In the case where scope of correction falls in different territorial jurisdictions, the chief commissioner to whom such e-application is made, shall forward such application electronically to the chief commissioner where such CPR was recorded incorrectly. On receipt of such e-application, the concerned chief commissioner shall make necessary correction in such CPR and inform the taxpayer accordingly.

In case of any objection, reason to such extent shall be communicated to the respective tax office electronically.

Change in CPR will only take place in the systems of the FBR for all accounting purposes, and the taxpayer will be entitled to take such credit accordingly.

Original CPR, being a bank document, will remain unchanged.

Copyright Business Recorder, 2020