ISLAMABAD: The Federal Board of Revenue (FBR) is going to start audit of telecom companies accounts to ascertain the payment of withholding tax, sources said. After the audit of withholding tax, the same exercise will be conducted to ascertain submission of sales tax, they added.
The data submitted by Telenor showed that no withholding tax was deducted from Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA in three months, which amounts to Rs 267 million tax evasion.
However, Senate Standing Committee on Finance, Revenue, and FBR officials opined that this was not possible for a telecom company to deduct withholding tax from one area and not from the other as the same recharge cards were available across the country. Members of the committee asked for strict penalties and fines against the tax evading telecom companies.
Senate Standing Committee on Finance, Revenue, Friday, met here with Senator Saleem Mandviwala in the chair here at the Parliament House and passed “The Auditor General’s (Functions, Powers and Terms and Conditions of Service) (Amendment) Bill, 2017” with amendments. Among other amendments. It was also specified that the Auditor General shall be a Grade 22 officer serving in the department for at least 15 years of experience without deputation.
The meeting was also given update on anomaly of withholding tax deducted on bonus share issued in respect of mutual funds, rules made under Benami Act, 2017, separation of cadres of accounts and audit, appointment of independent officer for audit of AGP and draft bill in respect of Federal Consolidated Fund and Public Account. The committee demanded progress reports on the matters by January 15.
The public petition regarding merger of house rent into salary of government servants instead of following the current process of hiring was disposed of and referred to housing and works for consultation with Finance Division.
