The Federal Board of Revenue (FBR) has changed the jurisdictions of 173 units of Karachi, bringing 60 units in the jurisdiction of Regional Tax Office (RTO) Karachi-II, 15 units in RTO Karachi-III, and 98 units would operate in the jurisdiction of RTO Karachi.
Sources told Business Recorder here on Saturday that the FBR has changed the jurisdiction of 173 units of Karachi for effective control and monitoring of these units. It was very difficult for RTO Karachi to handle a large number of units, and distribution of units would facilitate the day to day operations of these units in tax matters.
In the medium-term strategy of the FBR, the transfer of jurisdiction of certain units from Large Taxpayer Unit (LTU) Karachi to RTOs Karachi-II and Karachi-III would make it manageable for the tax department to deal with these units. The units would be in a position to plead their cases more effectively in the newly created RTOs where the tax officials would entertain these units in a more effective manner.
According to sources, a unit has been registered with the LTU on the basis of certain criteria. For example, a unit is liable to be registered with the LTU if its annual turnover is more than Rs 1 billion or tax payment more than Rs 10 million. Some units of LTU Karachi, which have stopped businesses or operations, have been transferred to their original jurisdiction. Similarly, there are non-resident companies, which have completed their businesses and left the country. There are cases where there is change in the annual turnover of a company. Keeping in view these kinds of changes, the FBR has changed the jurisdictions of certain units of Karachi.
The FBR notification said that the Board has transferred the cases from the LTU Karachi to respective RTOs of Karachi. As per notification, 98 units would fall in the jurisdiction of RTO, Karachi. Sixty units would deal their income tax and sales tax matters with the RTO Karachi-II; and 15 units would fall in the jurisdiction of RTO Karachi-III. The jurisdiction order of the FBR has also mentioned the National Tax Numbers and names of the units whose jurisdiction has been transferred from the LTU Karachi to RTO Karachi, RTO Karachi-II and RTO Karachi-III.
It is worth mentioning that the Board had made three new Regional Tax Offices (RTOs) functional in Karachi to facilitate the business community. The three RTOs have been made functional in Karachi from December 22, 2010. These are RTO Karachi, RTO-II and RTO-III Karachi.