Federal Board of Revenue (FBR) has conveyed to provincial revenue authorities that the single portal for filing of sales tax returns would address their reservations on adjustment of input tax from telecom companies and regularize input tax adjustment between the FBR and provinces.
Sources told Business Recorder here on Friday that the project of single portal would be completed by September 30, 2019. The User Acceptance Test (UAT) of centralized registration of the taxpayers through unique identifier (NTN/CNIC based) for all relevant jurisdictions would also be completed.
This was discussed during the last advisory meeting held with the provincial revenue authorities/board to discuss issues regarding single portal/single sales tax return, here at the Conference Room, FBR (HQ), Islamabad. The meeting was presided over by Chairman FBR Shabbar Zaidi,.
The Member (IR Policy), FBR welcomed the participants from the provincial revenue authorities and highlighted the necessity for establishment of a single portal.
He stated that taxpayers are registered in multiple jurisdictions, and have to file multiple returns. There is possibility of claim of same input tax from multiple jurisdictions because of lack of check on such adjustments.
The cases of deposit of liability including that of withholding tax in the wrong jurisdictions are often reported.
He added that credit of tax/refund to entitled jurisdiction required verification and reconciliation which could be benefited by a single portal, thus doing away with complications and delays.
General Manager (Development), PRAL, Ahmad Nawaz elaborated technical aspect and features of automated single return. He stated that single portal shall ensure that taxpayers are facilitated by allowing uploading data on a single portal. The portal shall prepare return based on data provided and forward return to relevant jurisdiction. The amount deposited shall be credited to respective jurisdiction. The data secrecy shall be ensured by not providing data to a jurisdiction to which it does not relate except where agreed to or authorized by the relevant jurisdiction.
He further stated that registration of the taxpayers will be through unique identifier (NTN/CNIC based) thereby the applicant shall be required to be registered centrally with FBR indicating all relevant jurisdictions.
The GM PRAL also informed that the project is 70% complete and can be fully completed within a period of one month for User Acceptance Test (UAT).
The provincial revenue authorities showed some reservations on adjustment of input tax from telecom companies. The PRAL resource person stated that single portal will in fact address such issues and regularize input tax adjustment.
The chairman FBR with consent of the all participants desired to complete the project of single portal by September 30, 2019 and UAT will be operationalized not beyond January 1, 2020.