ISLAMABAD (January 03 2004): The Central Board of Revenue (CBR) has asked the State Bank of Pakistan (SBP), Karachi, to take disciplinary action against certain officials of National Bank of Pakistan (NBP) allegedly involved in flouting new revenue reporting system for reconciliation of revenue receipts.
The tax authorities have also requested the SBP to impose penalty on NBP branches engaged in illegal retention of revenue receipts.
As per new accounting/reporting system implemented in the banks, NBP branches have to issue pay orders on daily collection along with the tax-wise bifurcation of the amount mentioned in the pay orders.
Similarly, NBP branches should also submit tax collection receipts to the SBP within 24 hours.
However, Collectorate of Customs, Sales Tax and Central Excise, Multan and Collectorate of Sales Tax and Central Excise, Lahore have separately lodged complaints to CBR about non-compliance with revenue reporting system by the NBP.
Sources told Business Recorder here on Friday that the issue of non-submission of daily pay orders/bifurcated statements was several times discussed among SBP, NBP and CBR officials.
It was decided that NBP Bahawalpur will invariably provide photocopies of all pay order/statements from July 1, 2003, issued in favour of SBP and follow this practice in future. The CBR regretted that despite repeated reminders, the NBP Bahawalpur is defying the new accounting/reporting system.
The CBR said that the reconciliation with SBP Multan is incomplete due to non-availability of figures of the NBP Bahawalpur.
Thus, delay in reconciliation is mainly on the part of NBP. It is requested that necessary disciplinary action may be initiated against the Regional Chief Manager NBP, D.C. branch, Bahawalpur for flouting the instructions, the CBR said.
On the reservation of Collectorate of Sales Tax and Central Excise, Lahore, the CBR has proposed to the SBP to slap penalty on various branches involved in the unauthorised retention of Sales Tax.
These branches include New Garden Town, Mughalpura, Renala Khurd, Bhai Pheru, Sangla Hill, Township, G M Nankana, Main Br.Okara and Wabda House.
The CBR has observed that the retention of revenue receipts is tantamount to gross violation of the federal treasury rules as well as the new reporting system implemented from July 1, 2003.
Under the new system, the NBP categories I, II and III branches should submit tax collection receipts to the SBP within 24, 48 and 72 hours, respectively.