Pakistan Revenue Automation Limited (Pral), a subsidiary of the Federal Board of Revenue, has been legally empowered to regularly conduct audit of National Clearing Company of Pakistan Limited (NCCPL) for examining maintained record of shares transactions and collection/deduction of the capital gains tax (CGT) through the NCCPL software.
Sources told Business Recorder on Thursday that the Finance (Amendment) Ordinance, 2012 has amended the Income Tax Ordinance 2001 to introduce a new Schedule ie Eight Schedule (Rules for computation of capital gains on listed securities). The audit being conducted by the Pral would examine the business rules of the system maintained by NCCPL and suggest corrective measures, if required.
Sources said that Pral is a company responsible for developing software pertaining to taxes including customs duty, income tax, sales tax and excise duty. Pral is also providing IT related services to Sindh Revenue Board and National Highway Authority (NHA).
Pral, a company incorporated under the Companies Ordinance, 1984 or any other company or firm approved by the Board and any authority appointed under section 209 of this Ordinance, not below the level of an Additional Commissioner Inland Revenue, shall conduct regular system and procedure audits of NCCPL on quarterly basis to verify the implementation of the Eight Schedule and rules made under the Ordinance. The NCCPL shall implement the recommendations, if any, of the audit report, as approved by the Commissioner, and make adjustments for short or excessive deductions. However, no penal action shall be taken against NCCPL on account of any error, omission or mistake that has occurred from application of the system as audited. The NCCPL shall be empowered to refer a particular case for recovery of tax to the Board in case NCCPL is unable to recover the amount of tax, sources added.