ISLAMABAD: The Federal Board of Revenue’s intelligence wing has unearthed non-deposit of near Rs 63 million withholding tax by Pakistan Railways after giving contracts to different companies.
According to sources in the Directorate General of Intelligence and Investigation-Inland Revenue, the Pakistan Railways had sealed several agreements with various companies since the year 2006 whereby contracts for operating passenger trains were awarded through open auction. However, due withholding tax u/s 236A, of the Income Tax Ordinance, 2001 has not been collected by the Pakistan Railways from the contractors.
An inquiry/investigation has been conducted in this regard and default u/s 161 of the Income Tax Ordinance has been ascertained to the tune of Rs 62,954,774 along with default surcharge u/s 205 at Rs 1,505,294.
The Directorate General of Intelligence and Investigation-Inland Revenue has detected non-deposit of withholding tax to the tune of Rs 62,954,774 by Pakistan Railways on the award of contracts to different firms/companies under agreements.
