The State Bank of Pakistan has asked banks to ensure appropriate procedures for timely credit of tax receipts in the Federal Board of Revenue (FBR) account. The State Bank on Monday advised banks/DFIs/MFBs to remain fully cognisant of their legal responsibilities in respect of timely deduction of applicable taxes on eligible transactions and corresponding credit to accounts of government treasury/FBR.
The discharge of this responsibility attains further importance at the close of the fiscal year, where all receipts and credits are to be reflected in the same timeframe/fiscal year, said BPRD Circular Letter No 11 issued on June 11, 2012 by SBP.
"Banks/DFIs/MFBs are therefore advised to ensure that appropriate procedures are in place for timely credit of tax receipts in the FBR account and the proceeds of all the taxes including withholding tax for the current fiscal year are transferred/deposited to FBR account, on or before the close of business ie on June 30, 2012 (being Saturday)," it added.
Further, the withholding tax on the profits paid by the Banks/DFIs/MFBs as on June 30, 2012 to the depositors should also be transferred/deposited to the FBR account on or before the close of business on June 30, 2012. Accordingly, credible arrangements should also be in place to discharge such liabilities of off-line/far flung branches as of June 30, 2012, the SBP said. "The State Bank may verify compliance of the above instructions during its regular or targeted inspection of Banks/DFIs/MFBs," the circular said.