The Federal Board of Revenue has requested the Controller General of Accounts to implement the Sales Tax Special Procedure Withholding Rules 2007 to ensure that the sales tax deduction on supplies made to government departments is effectively done and deducted money credited to the relevant account of FBR.
Sources told Business Recorder here on Wednesday that the FBR is taking steps to ensure enforcement of the Sales Tax Special Procedure Rules 2007. The FBR has informed the Controller General of Accounts that the section 2(4,) of the SRO.660 (I)/2007 states that the Drawing and Disbursing Officer (DDO) preparing the bill for the accounting office shall indicate the amount of sales tax withheld equal to one fifth of the total sales tax shown in the sales tax invoice issued by a registered person.
He shall also prepare the return in the form as in the Annexure to Sales Tax Special Procedure Rules 2007 for each month and forward the same to the Commissioner having jurisdiction by the 15th of the following month. The Accountant General Pakistan Revenue and the Military Accountant General shall account for the amount deducted at source during a month under the Head of Account "B02341-Sales Tax" and send an intimation to the FBR Member (Inland Revenue,), FBR, by the 15th of the following month.
Accordingly, the department under provincial or district governments, the Accountant General of the province or the District Accounts Officer, as the case may be, shall credit the amount deducted at source during a month to the Head of Account "G12777-Sales Tax deductions at source under Sales Tax Special Procedure (Withholding) Rules-2007."
The cheque for the amount will be prepared by the Accountant General or the District Accounts Officer in the name of Commissioner having jurisdiction by debit to the aforesaid Head of Account and sent to the commissioner by the 15th of the following month. In view of above, it is requested that all the respective DDO's/ /DAO's/ CAO's/ DG's/AG's/MAG may be advised to submit the requisite report for the period from January 1, 2010 to October 31, 2011 at the earliest convenience and in future by 15th of the following month to the Board as well as the Commissioner having jurisdiction, FBR's instructions added.