WORKSHOP-CUM- MEETING OF OFFICERS OF INLAND REVENUE, REGIONAL TAX OFFICE, SUKKUR
ON FINANCE ACT,2013 HELD ON 02-08-2013.
A meeting of Officers of Inland Revenue, RTO Sukkur chaired by the Chief Commissioner Inland Revenue was held on 02-08-2013 to discuss and deliberate the changes made in Income Tax, Sales Tax and FED laws through Finance Act, 2013. The session started with the recitation from the Holy Quran. Thereafter, the Chief Commissioner Inland Revenue welcomed the participants and conveyed the message of the Chairman FBR given during the Chief Commissioners’ Conference held on 22nd July, 2013. The following four points were conveyed to the officers:
A clean, effective, efficient, fair and firm organization with zero-tolerance for any corrupt or mal-practice in the administration of tax laws.
50% liquidation of arrear demand during the first quarter of 2013-14.
Full utilization of softwares such as CREST, TAMS, ITMS etc.
Proper attention shall be given to sales tax.
2. The formal presentation on Finance Act, 2013 was given by Mr. Fayaz Hussain Abro, Deputy Commissioner Inland Revenue. After presentation, the provisions were discussed one by one and each officer commented on different changes and their implications on the revenue collection of the RTO Sukkur. Following changes were discussed in detail:
(i) Enhancement of tax rates / withholding rates:
Minimum tax u/s 113 from 0.5% to 1.0%
Tax u/s 153(1)(a) Supply of goods from 3.5% to 4%
Tax u/s 153(1)(b) Services from 6% to 7%
Tax u/s 153(1)(c) Contracts from 6% to 6.5%
Tax u/s 156 Prize Bonds from 10% to 15%
Tax u/s 231A Cash Withdrawal from 0.2% to 0.3%
Tax u/s 236A Auction from 5% to 10%
Sales Tax from 16% to 17%
FED on Aerated Water from 6% to 9%
(ii) Introduction of new provisions to generate revenue:
Minimum tax on Builders & Developers.
Withholding tax on bills received by Marriage Halls/Hotels.
Collection of advance tax by PEMRA from cable operators.
Collection of WHT by certain Manufacturers & Commercial Importers @ 0.1%.
Collection of WHT by certain Manufacturers, Commercial Importers, Wholesalers, Dealers or Distributors from their retailers @ 0.5%.
Collection of advance tax @ 5% of fee received by Education Institutions, if annual fee is Rs.200,000 & above.
Collection of advance tax by Market Committees from Commission Agents & Arhatis.
Collection of 5% extra sales tax by SEPCO from un-registered persons, having monthly of bill of more than Rs,15,000/-.
Collection of FED on edible oil @ Rs.0.40 per kg.
Payment of Re. 1 per kg FED by Ghee Manufactures on local purchase of raw oil.
(iii) Abolishing Exemptions / rebates:
Elimination of exemption to National Saving Schemes account holders upto Rs.150,000.
Reduction of 75% rebate to 40% for full time teachers.
Withdrawal of exemption against international tenders.
Changes in zero-rated & reduced rates items.
3. The Chief Commissioner Inland Revenue, further shared views and threw light on Income Support Levy Act, Enforcement Measures, Taxpayers Audit u/s 177, Working on CREST, Taxation of CNG Sector and SOP for suspension, blacklisting of sale tax defaulters.
4. The Chief Commissioner Inland Revenue finally, again emphasized on the collection of arrears, withholding taxes, disposal of audit cases, broadening of tax base and achieving the annual targets of revenue collection.
5. The meeting ended with a note of thanks for the Chair.
WORKSHOP ON TAMS, CREST AND ARREAR RECOVERY PLAN
A meeting of officers of Inland Revenue, Regional Tax Office, Sukkur chaired by the Chief Commissioner Inland Revenue was held on 13-08-2013 to discuss the issues of entry of audit cases on TAMS, liquidation of arrear demand and processing/finalization of cases on CREST. The session started with the recitation from the Holy Quran. Thereafter, a presentation on TAMS was given by Mr. Nasir Ali Rizvi, Manager, PRAL. He gave live demo of new features added in the TAMS, generating notices through the system. It was decided that the Manager PRAL will generate unit-wise lists of 1859 pending cases already entered on TAMS. The Officer of Inland Revenue, Audit units will complete the entries on TAMS in respect of cases, which are already finalized/closed. In the cases which are still pending, the future correspondence with the taxpayers will be processed through TAMS. Notices/letters should bear the bar code and number automatically printed from TAMS software. Any notice/letter issued without TAMS bar code & number will be illegal. The Manager PRAL was requested to update User Ids and passwords of all officers posted in Audit Units. It was also decided that no new case will be selected in audit u/s 177 until TAMS is updated upto Tax Year 2011.
Mr. Muhammad Akbar Mahar, Additional Commissioner Inland Revenue (Enforcement) Zone-I, Sukkur gave presentation on pendency of arrear demand and finalization of cases on CREST. Following different options were discussed to collect the recoverable demand:
I) Attachment of Bank Accounts/immoveable properties of defaulters.
II) Arrest of defaulters.
III) Publishing names of big defaulters in newspapers.
IV) Issuance of notices u/s 48 of the Sales Tax Act, 1990 on all Pakistan basis.
V) Suspension of registration in cases of active taxpayers against whom arrear is outstanding, after opportunity of being heard provided to them.
It was further decided that the Commissioner Inland Revenue, Zone-I will devise a SOP to recover the arrear demand created u/s 122C of the Income Tax Ordinance, 2001. It was also decided that very old arrear of sales tax and FED in which the taxpayers are untraceable and they are inactive since last three to five years, will be processed to write-off after obtaining system generated report from PRAL.
In 60 cases of zero-rated /cotton ginners, the CREST generated show causes have been issued to the taxpayers. The concerned officers were directed to finalize the cases within time limitation period on priority.
Finally, the Chief Commissioner Inland Revenue addressed the officers, putting emphasis on following areas:
a) Creation of genuine tax demand.
b) Out of demand recovery.
c) Enforcement of laws.
d) Least litigation and harassment.
In the last, the Chief Commissioner Inland Revenue announced that in every month, an Appreciation Certificate will be given to the Officer, whose performance will be outstanding during the month. Evaluation of his performance will be made by a Committee constituted for the purpose.
The meeting ended with a vote of thanks for the Chairman.