The Federal Board of Revenue (FBR) is implementing a new strategy to deal with the issue of multiple challans or Computerised Payment Receipts (CPRs) for proper collection of withholding tax from agents.
Sources told Business Recorder here on Sunday that the FBR has asked the field formations to effectively tackle the issue of withholding tax collection through multiple challans or CPRs.
The FBR has asked the Large Taxpayer Units and Regional Tax Offices to adopt the strategy finalized by the Rehmatullah Khan Wazir Chief Commissioner Large Taxpayer Unit (LTU) Karachi.
The withholding tax plan said that the practice of multiple challans/CPRS have created problems both for the taxpayers as well as for the tax department.
Since the CPRS in this case are retained by the Data Processing Center (DPC) hence at the time of allowing credit usually the printout issued by the DPC is not available and credit is not allowed even to the genuine taxpayer with the result that bogus demand is created.
Similarly, the distribution of such collection between the field formations is difficult because in most of such cases National Tax Numbers (NTNs) are not available with the result that there is always a chance of misreporting of collection on this score.
The practice of multiple CPRs needs to be dispensed with. In this connection all the withholding agents may be advised to prepare separate CPRs for every person (deductee) from now onwards, LTU Karachi said.