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+--- Thread: Future of Worker's Welfare Fund !!!!!!! (/showthread.php?tid=10360)
Future of Worker's Welfare Fund !!!!!!! - Star - 09-15-2011
Dear All,
You might heard that amendments made in WWF Ordinance through finance act 2006 & 2008 struck down by Lahore Hight Court....
Anyone who is not updated may go through the following links
http//www.thenews.com.pk/TodaysPrintDetail.aspx?ID=64438&Cat=5
1. My question is that whether the service providing companies i.e. banks & insurance would be required to pay WWF @2% for the financial year ending December 31, 2011 at the time of filing the Annual Tax Return?
2. Whether the WWF contributions paid in the year 2008, 2009 & 2010 would be claimed as refund at the time of filing the return for current year i.e. 2011?
3. If answer of above 2 is yes then What would be the accounting treatment of WWF refundable for the year 2008, 2009 and 2010? Mean to say would be treated as other income or would be adjusted in prior years?
4. Does anyone know whether FBR is going to file appeal against the judgement passed by Single Judge of Lahore High Court?
5. Whether any company may claim refund on the basis of judgement passed on the petition of any other person?
6. If Supreme Court also struck down these amendments, in case FBR opts to go SC, then what would be the status of WWF paid by service sector in previous years?
7. Any other way out for FBR to give legal effect to these amendment...! after the situation in 6 above.
Regards,
*
- student_of_law - 09-17-2011
My opinion is as follows
banks and insurance companies were brought in the definition of industrial estblishment in WWF Ordinance by insertion of clause (iva)in section 2(f) of the Ordinance. As the amendment is declared ultra vires of the Constitution, so banks and insurance companies would not be required to pay WWF any more.
I think WWF paid earlier would not be claimed as refund in current year return. Rather one would have to revise returns of previous tax years. This will entitle them to refund. Then same refund process is to be undertaken.
For your question No.5, I think refund without revising return is not possible. Income Tax Return is an assessment order. Unless assessment order is revised how one can claim refund.
For your last question, Government , not FBR, may give effect to the extent of covering bank and insurance company in WWF regime. WWF Ordinance is applicable on all industrial establishments. Industrial Establishment is defined in WWF ordinance. Clause (vi)of its definition says that Federal Government may declare any concern to be industrial establishment. So instead of making amendments illegally Federal Government could adopt legal path of issuing gazetted notification to the effect that all establishments which West Pakistan Shops & Establishments Ordinance applies (it applies to banks and insurance company) is an industrial establishment for WWF Ordinance. Other amendments could not be given effect after the judgment, unless enacted by Act of Parliament passed by National Assembly as well as Senate
- Star - 09-23-2011
thanks. Anyone else...