FAISALABAD: The Regional Tax Office (RTO) of the Federal Board of Revenue (FBR) has detected a difference of Rs 605.402 million in purchases of M/s Fast Feed (Private) Limited, causing a loss of Rs 29.829 million to the national exchequer during fiscal year 2014-15.
Following the instructions of RTO Chief Commissioner Shad Muhammad, a team of auditors led by Assistant Commissioner Ahmad Nadeem Shahidi found some discrepancies in purchases of the company. The company paid Rs 408,416 in wake of taxes, while the actual amount of taxes was Rs 30.237 million.
The RTO after detecting the shortfall in the tax deposited by the company has issued a notice demanding from the company to pay the remaining tax liabilities. The assistant commissioner issued notice under Rule 44 (4) of the Income Tax Rules, 2002 for reconciliation of withholding tax deduction with payments made – for tax year 2015. The company has been directed to reply along with party-wise ledgers and documentary evidences before August 15, 2016.
M/s Fast Feed Company filed withholding tax statements for the period July 01, 2014 to June 30, 2015 which were examined in the context of withholding tax provision and compared with expenses declared in return of income for tax year 2015 and with sales tax returns for the relevant tax periods.
It had not furnished audited accounts along with returns, which were required to be furnished. Certain discrepancies have been found which showed difference in tax deductible and tax deducted deposited.
