ISLAMABAD: The Federal Board of Revenue (FBR) will impose huge penalties as well as default surcharge on sales tax withholding agents, who have failed to withhold sales tax or deposit the same in the national exchequer.

FBR asked to review banks’ withholding regime

The updated Sales Tax Act revealed a new section 11F (failure to withhold sales tax) in the said Act. Where any person, required to withhold sales tax under sub-section (7) of section 3, fails to withhold the tax or having withheld the tax fails to deposit the same in the prescribed manner, the officer of Inland Revenue not below the rank of Assistant Commissioner shall after a notice to such person to show cause pass an order to determine and recover the amount in default and impose penalty and default surcharge under section 33 and 34, it added.

Copyright Business Recorder, 2024