ISLAMABAD: The Federal Board of Revenue (FBR) collected Rs2.1 million tax through the auction of 39 vehicles of the Cabinet Division in November last, however the National Database and Registration Authority (NADRA) refused to pay a single penny as tax from the proceed it had earned out of auction of 13 vehicles.
As per rules and regulations which govern the functioning of the government departments and ministries, proceed earned out of auction of vehicles is taxable amount and every organization is liable to pay the accurate amount of tax to the FBR” a well placed official source at FBR told Customs Today on Friday.
Normally, tax is deducted by the concerned authorities on transfer of government vehicles to the buyers however, the ratio is fixed at the time of auction as per specified rules.
The source said that although Cabinet Division made payment of Rs 2.1 million tax to FBR on the auction of said vehicles, yet auctioned price for the vehicles had not been provided to FBR. In this regard, FBR has sought required information from the Cabinet Division.
“Since no tax has been collected, audit of NADRA is being conducted and in case the purchasers were found to be liable to pay tax and did not hold exemption certificate, recovery shall be made from NADRA as well as from the purchasers” the source added. FBR would also issue notice for recovery of non collected tax after completion of audit of NADRA.
“No return has been received from purchasers of vehicles auctioned by NADRA despite the fact that due date for filing of return for any income or investment made during financial year 2016-17′ the source maintained. And FBR will issue notice u/s 114 of filing of return to NADRA after due date in case return is not filed voluntarily
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